Getting Your Feet Wet – Begin Investing

If you are afraid to get your investments started, you can get started at once without having a lot of knowledge about the stock market. Begin with being a conservative investor with a low risk tolerance. This will give you a possibility of making your money grow while you learn more about investing.

Get started with an interest bearing savings account. Maybe you already have one. If you don’t, you should. A savings account can be opened at the same bank that you do your checking at – or at any other bank. A savings account should pay you 2 – 4% on the sum that you have in the account.

That's not a lot of money – unless you have a million dollars in that account – but it is a start, and it is money making money.

Next, invest in money market funds. Often, you can do it through your bank. These funds have higher interest payouts than typical savings accounts, but they work much the same way. These are short term investments, so your money won’t be tied up for a long time – but otherwise, it is money making money.

Certificates of Deposit are also healthy investments without a risk. The interest rates on CD’s are normally higher than the rates of savings accounts or Money Market Funds.

You can select the time period of your investment, and interest is paid frequently until the CD reaches maturity. CD’s are avaliable at your bank, and your bank will even insure them against loss. When the CD reaches maturity, you receive your original investment, and on top of that the interest that the CD has earned.

If you are just starting out, one or all of these three kinds of investments is the best starting point. Oce more, this will allow your money to begin growing your money while you learn more about investing in other places.