Investing Your Money

Day 9

Investing Your Money

Thus far, all I have talked to you about is saving your money. I think today would be a great day to help you learn how to invest your money. There are many different ways to invest your money, here are five ways.

1. Saving accounts- The first thing and simplest way of saving is to get a savings account. Most savings accounts only pay a quarter of a percent back. That means that if you have a thousand dollars in your account, you will only get two dollars and fifty cents for leaving your money in this account. This isn’t the most efficient way of earning money.
2. CD’s- A CD will pay you back a little bit better than a savings account but you aren’t able to touch your money whenever you want. Most CD accounts last a month to 6 months.
3. T-bills- These are given out by the government. They are risk free and will pay you back a little bit better than CD’s and your savings account.
4. Mutual Funds- A mutual fund in essence is buying a bunch of stocks from different companies. Mutual Funds are based off the idea of trying to create a non-diversifiable risk. The greater the non-diversifiable risk the greater the expected return.

5.     Stocks- Start buying stocks today. Many of you have heard that buying stocks have made many people a lot of money. Try to make your investment a non-diversifable risk and try to buy at least 30 stocks from different companies to make your investment not as risky .

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