Investing 101 - Where To Start?

There is a saying in the investment world, “Invest in what you know.” I know what you may be thinking “What if I don’t know anything?”
The trick is to find something that interests you and start there. There are a multitude of investment vehicles, but I will just name a few for now:

Stocks
Real Estate
Mutual Funds
Forex (foreign exchange)

Whichever investment vehicle you choose, your goal is going to be the same – buy low and sell high. This may take some research, but if you’re looking into something that is interesting to you, it will make things much easier. For example, if you like to read, look into book store stocks. Like gardening? Look into stocks that deal with that. There’s nothing worse than studying something you’re not interested in.

Look for something that is priced below its actual value and buy it. Easier said than done, especially if you’re just starting out. The good news is that you can do most of your research on the internet. Read the companies annual reports, their goals, mission statements, etc. . They usually post these on their websites.

Not sure which investments to start with? Do some research on the net regarding pros and cons to each investment type. Read some books to help you better understand each of them and go from there.

Some books I recommend to get you started on your investment path: n“Rich Woman” by Kim Kiyosakin“Why We Want You to Be Rich” by Donald Trump and Robert Kiyosakin“Learn to Earn” by Peter Lynch n“One up on Wall Street” by Peter Lynch

Some things to keep in mind: nn* Start small – you don’t have to buy $1,000,000 worth of stock, or a palace fit for a king.
* Have funn* Never stop learning!

Once you have chosen your investment vehicle, you need to create your investment plan.

1) Determine your goal: Are you investing for Cash Flow or Capital Gains? (if you choose stocks, you are investing for capital gains; if you buy real estate and rent, you are investing for cash flow)
2) What is your goal? What do you want to do with your money? Buy a new house, new car or save for a rainy day?
3) What will your primary investment vehicle be?
4) What is your time frame for accomplishing your goal?

Starting an investment plan can be a daunting task, but with the right tools and resources, you can be well on your way to financial freedom.