If you just started your investments, you can get started without having a lot of knowledge about the stock market. Start by being a conservative investor with a low risk tolerance. While you learn more about investing, this will give you a way to making your money grow.
Start with an interest bearing savings account. If you don’t have one, you should. A savings account can be opened at the same bank that you do your checking. A savings account should pay 2 – 4%.
It’s not a big money – but it is a start, and it is money making money.
Then, invest in money market funds. This can be done through your bank. These funds have higher interest payouts than typical savings accounts. These are short term investments – but again, it is money making money.
Certificates of Deposit sound like investments with no risk too. The interest rates on CD’s are typically higher than of savings accounts or Money Market Funds.
You can select the duration of your investment. CD’s can be purchased at your bank, and your bank will insure them against loss. When the CD reaches maturity, you receive your original investment.
If you are just starting, all or one of these types of investments is the best starting point. Also, this will allow your money to start making money for you while you learn more about investing.
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