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3 Ways To Invest As A Beginner

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May 7 2019, Published 12:55 p.m. ET

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If you’re trying to give your bank account a boost you’ve probably considered investing as one good way to increase your net worth. While it may seem complicated at first, anyone can learn how to invest their money for a good chance of returns. More money is never a bad thing and having a lot of savings set aside can help make your life easier in a wide variety of ways.

1. Real Estate 

A classic way to invest your money is through real estate. While it can occasionally be risky, real estate can often be a great way to go from a relatively small amount of money to a valuable asset. Property investment can come in a few different forms. You will likely either be using a property as a rental, earning money through renters, or buying and improving a property to resell at a higher value. Both methods can work well. A lot of consideration needs to go into what kind of property you have and what its strengths are so you can plan for the best strategy to profit from it.

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2. Bonds

There can often be some confusion as to what sets bonds apart from stocks, but the difference can actually be relatively straightforward. Rather than being a share in a company with value that fluctuates, bonds are essentially a loan that you make and earn interest from over time. While they are a very safe way to invest money, bonds will often result in smaller returns than other investment ventures and it may take years for you to actually have access to the money you earn.

3. Stocks

Probably one of the first options that came to mind when you started thinking about ways to invest were stocks. Owning a stock is like owning a tiny piece of a whole company. This means that when the company is doing good, the stock is worth more, but if the company begins to struggle your investment may end up costing you. There are many strategies you can use to help improve your odds of making a good investment in stocks. For example, investing in mutual funds can be a way to cut back on the risk and is often a good way to get started.

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Getting Started

Before you start pouring any money into an investment, it is important to take some time to plan and prepare. One of the most important things for you to do can be to figure out what assets you already possess. Calculating your net worth by subtracting any debts you owe from the total value of money and property that you currently have can be a great way to identify your resources and decide how much risk you can afford in an investment. 

Investing For Returns

When done correctly, investing can be a great way to increase your net worth. While it can sometimes be intimidating to get started, there are lots of different options to choose from for investing. Whether you’re trying to plan for retirement or simply want a little extra financial boost, smart investing can be one of the best ways to make the most of your money.

[Editor’s note: This post is from one of our trusted partners.]

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