What is Investing and how can i make money??

Question

i got $5, 000 in the bank, i figured if i let it stay in the bank it will take too long to add up, but how about investing, do you think its a good idea? what are smart ways to get my money to multiply thru investing? how come most people dont invest their money? is there something more to investing that the common person doesnt know?

Answer 1

The easy way is go to the businessweek or cnn.com business links and read about companies. They will tell what is new, what is different, and what is bad about this company or that. Eventually, you will see something and say to yourself, "I want part of that!" Then you open a brokerage account (Scottrade or Sharebuilder are nice, easy, and cheap) and put some of that saving into it.

Now investing and trading are two different dogs. Trading can be fun, but dangerous to your wealth if you don't know what you are doing. Investing can be as boring as watching paint dry, but it is safe and often (but not always, stocks do go down, something to remember) more lucrative than merely letting the bank toss a few crumbs of their investing your money. Oh, and the nice thing about Sharebuilder, is that you can siphon off a small amount each month--the idea is called dollar-cost-averaging. Sometimes we get to buy a stock at its low price and it goes up, often we buy into it and it goes down. By buying a little at a time, we buy more shares when the price is lower and fewer when the price is relatively higher so that sometimes the average price of the stock purchased may be lower than when you may have initially bought the stock for when you started.

Patience. When you are comfortable, then put real money in. Otherwise, let the bank continue to pay you a pittance while you read up about companies that get you excited so you want a piece of their action. Good luck.

Answer 2

Yes there is more to it than the common person know. IT IS NOT easy, it is simple. Investing is like looking at a fire cracker on a hot skillet. All is ok one minute and the next it blows up.

You can take your $5,000 and buy a home. Starting on day one your rent money start paying you. If you think you own the house and can do what you want when you want, your fire cracker will explode right before your eyes. Knowing that your home needs work and doing the little things as you go will permit you to reap great returns.

My first house cost me $27,000 and paid me $33,000. I still have the house and there is a $60,000 mortgage on it. Today the real estate value of the property is $120,000 - I did nothing to raise the property value. Investments grow on their own, or with adjustments.

Feel free to e-mail me if you need some advice.

Answer 3

http://www.byoaudio.com/play/Wk2fbCgQ This is Robert Kyosaki explaining a form of business that is mis understood through his diagram called "The Cash Flow Quadrant" and he has a book I have had my children read called "Rich Dad Poor Dad."

Do you have a library card?

If so, Robert Kyosaki's books are free at your local library.

Learn from this man, he is a very good teacher.

87% of the Western Population of retirement age rely on their government or church to get by... Robert Kyosaki is very aware of this.

Lately, he teamed up with Trump to help people understand what steps they can take to become wealthy. Why? Because, the middle class are disappearing.

Investing is about design and planning in order to build a financial fortress around you and your future family so that nothing can get through.

See the Cash Flow Quadrant on http://www.glycobusiness.com/mannalive and learn what he is talking about.

I've used a white board to illustrate this to my prospects who wanted to start their own business. People who are good at creating wealth are effective at teaching people about how to do it as well as doing it themselves.

If you want to be successful today, it's all about mental emotional and core values, which require stamina to put up with well meaning people who believe they are protecting you when they tell you not to take any risks.

If you want to become wealthy or financially stable, go out there and do your due diligence. An educated person will make an educated decision.

Answer 4

Keep the money in a high yield bank account and try to add more money. Once you get 10k invest in index funds and hold on for the long term.

Answer 5

I've always thought it should be taught in high school myself. I would go to the library and read. I was in the same situation as yourself when I was 17 and I read and read and watched how companies traded until I was ready to invest.

12 years later, I am happy, healthy, wealthy, and still have all my hair :)

Read some books, keep track of the companies you plan to buy, and good luck.

use the yahoo portfolio tracker under yahoo finance--portfolio tab. Set it all up. Its on one page and is free and easy.

Answer 6

Yes. It's a good idea.

I suggest you to open a brokerage account at TD Ameritrade and buy DIA.

Most people don't invest their money for exactly the same reason most people smoke despite the fact they will die of cancer and most people don't exercise despite the fact they will live longer and healthier if they do and finally most people eat at McDonald's despite the fact you will die of a heart attack if you eat a few times times a week there.

If you need more FREE financial help just let me know.

Top 4 Answerer.

Answer 7

Well there are two different types of investing.

1. Passive

2. Active

Passive investors are those that hand their money over to companies to invest their money for them.

Active investors use their own knowledge to invest.

What I would suggest. STUDY STUDY!!

Try reading "New Buffettology"

And don't stop learning.

Answer 8

I found this site, currency trading, maybe you can read a bit about it: http://worknearn.bathbiz2.hop.clickbank.net/