Quote:
|
Originally Posted by sub zero
Hey guys thought it was about time to start considering making my money work for me and what not. Basically considering starting out making investments and eventually moving on to larger savings.
Anyways can someone point me out in the right direction as to something I can read before I put my money somewhere. Am looking to starting out anywhere up to $500.
|
Well, noone really answered your questions, so I suppose I'll elaborate...
First off, you should always have three, preferably six, months of living expenses in a liquid account. Assuming that you do or you don't care what is recommended...
Although $500.00 isn't a ton of money to start off with, it certainly can be put to use. Especially if you begin investing a specific amount each month.
When I was younger and couldn't afford all that much, I started off with a couple DRIP accounts. A DRIP account is basically a stock that allows Direct Reinvestment of your earnings back into the stock that you had purchased. You can do a bit of research as to what companies offer it.
If, however, you don't want to go with something that carries as much risk as a stock, you may consider investing in mutual funds. I have several different mutual funds, and they withdraw a specific amount from my savings account every month automatically. I started this when I had just turned 18... and it has grown pretty substantially since then (I'm 22 now) Although it may not seem like much every month, it adds up.
Another option you may want to consider is putting it into an IRA, depending on your situation. I would recommend a Roth IRA, but make sure you only do that if you will never, ever, ever, need the money before you retire. Depending on your age/situation, an IRA may not be the best choice for you...
Hope this helps a bit...