What are the best ways to invest your money?
A problem that a lot of people face is that they don't know where or even how to invest their money. There are many ways to invest one's money, including CD's (Certified Deposit), high yield savings accounts, and stock brokers: the list goes on. Below are five ways you could easily and effectively invest your hard-earned cash.
CD or High-Yield Savings Account: With a CD or Certified deposit, you will be completely safe from ever losing any money, and what you have put in to the CD will grow due to fixed interest you get while the money is invested. If you're someone who would prefer to be able to take money back out of the bank without having to wait out the CD, then I'd recommend the high yield savings account, which typically gives you around the same amount of interest but allows you to draw money out if you ever were to need it.
Stock Brokers: There are many impressive, low-cost online brokers such as Fidelity Investments and Charles Schwab who offer free stock and ETF trades while also providing great research and educational tools to get you started on your way. Both Fidelity and Schwab, for example, are noted for their overall customer service and investor friendliness.
Invest a little each month in the stock market: If you go with a commission-free broker, you’re going to be able to invest modest amounts each month and not have your capital eaten up by fees. Therefore, more money actually goes into your stocks or funds. You can put away even just $20 or $30 a month and start to see the money in action.
Investing Apps: One way to simplify the investing process even further is with an investing app. One popular mobile app that may help here is called Stash, which allows you to buy some individual stocks or a selection of ETFs. It takes only $5 to get started, and the basic account costs $1 per month. If you don’t know how to start investing but want to learn and do it yourself, Stash will help you out.
Automated Investing: If you’re not ready to pick individual stocks or even an index fund, then you can opt for a robo-advisor. A robo-advisor automatically creates a portfolio for you, buying a selection of funds based on your time horizon and how aggressive you want to be with your investments. Beginning investors can get started with very little money – even $20 can get you going – and you can add money incrementally without any additional transaction costs.
These are very simple and easy ways to start investing and growing the loose change in your house into profitable investments. More tips can be found here.