While the talk of investing makes some nervous, I thought I would touch on the subject today. Warren Buffet is one of my heros and one of his mottos is to have an earnings bucket and an investment bucket. I like that idea.
First, many ask "What is the difference between a stock and a bond?" Well, a stock is a share of a company and a bond is a debt investment to which an entity borrows money for a specific amount of time at a certain interest rate.
Now, with that said, how to start investing is what I am going to speak about today. I have discovered a company called "Foliofn" that is one of the best I have seen. It allows you to buy percentages of stock at what ever rate you can afford. Now, that is not all that new, but the best part is they have "ready to go Folios" that are preselected based on their performance and the risk level you want. Because the Folio has approxmately 20 stocks, your investment is diversified which allows to you minimize your risk.
One thing to remember, the money you invest in the stock market is not protected by FDIC like it is in the bank. A good idea would be to start slow and build up as your confidence increases. Remember, you can start by investing $20.00 per month or something until you feel you have a little more experience.
The stock market is just one way to invest your money. If your company offers a 401K, this is one the best ways to invest especially if they have company matching. Tomorrow I will cover investing in real estate which is a topic near and dear to me and the ways I can help you build wealth over time by buying a rent home.
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