You’ve probably heard investment advice before that goes something like this – invest early and often, because time is on your side. The earlier you start, the more compounding can work in your favor. So, if you’re in your 20s or 30s, you may be wondering how to get started making investments. It may seem complicated or scary at first, but we’re here to tell you that it doesn’t have to be! This guide by Vincent Camarda will walk you through the basics of investing so that you can feel confident putting your money into the market.
What is an Investment?
An investment is simply when you use the money to purchase an asset in order to gain more money in the future. For example, you could buy a stock for $100 with the goal of selling it for $110 later. The extra $10 would be your profit, and this is how many people make a living by investing in assets. Of course, there are also different types of investments besides stocks – we’ll touch on some of those later on.
Why Should I Invest?
There are several reasons why investing can be beneficial for young adults. For one thing, as we mentioned before, time is on your side when you’re young. The earlier you start investing, the longer your money has to grow. Additionally, making investments can help to diversify your income sources – which is always a good idea! And finally, if done correctly, investing can lead to a comfortable retirement later down the road.
How Do I Start Investing?
There are a few different ways that you can start making investments. If you want to get started with stocks specifically, one option is to open up an account with a brokerage firm (like TD Ameritrade or E-Trade). From there, you can begin buying and selling stocks within that account. Another option for investing in stocks is through a Robo-advisor like Wealthfront or Betterment. These companies will invest your money for you based on factors like your age and risk tolerance level.
How to Get Started with Making Investments
