Grow Your Money

Money comes to us in all kinds of ways.  And for many of us just keeping it around long enough can be a real challenge. But, assuming you have some to spare, one of the very best things you can do for your money is to help it grow.  And that’s the point of investing your money.

But first it helps to understand your investment options, so you can figure out which ones are best for you.  And which ones offer you the level of risk and return that feel most comfortable. Investing your money isn’t as hard as it may seem, but it does take a bit of self-education and patience.

Basically, the main point of investing your money is to get it to grow faster than inflation. But you also want to protect your principal (original amount) as best you can. And that’s where things like diversification and risk management enter the picture.

Investing your money in stocks

Most people think of stocks when they think of investing. So let’s start by getting a solid understanding of some of the basics of stocks.

♦   Stock Basics: I Want To Learn To Buy Stocks for Myself

♦   What Exactly Is the Stock Market & Who Should Invest?

♦   What You Need To Know About Stocks

♦   3 Reasons To Stay Out of the Stock Market

 

♦   How To Handle a Stock Market Downturn

♦   What You Need To Know About Online Stock Tips

♦   How Do You Make Money From Stocks?

♦   6 Rules for Trading Stocks (for New Investors)

 

♦   The Day I Bought My First Stock

♦   Building a Relationship With Your Stock Broker

♦   I Don’t Understand Stocks at All!

 

⇒   EXTRA:  Portfolio Theory: Why Diversified Investing Is Important

 

Learning about bonds

For serious investors, bonds can help provide a good balance. They allow you to strengthen your portfolio by spreading the risk and not having just one type of investment.

In other words, it’s about not putting all your investment eggs in one financial basket. So your portfolio can get through some of the scarier market times with less of the roller coaster effect. (See portfolio theory article below for more information on that.)

♦   A Simple Guide To Bonds & Bond Terms

♦   The Difference Between Bond Coupon and Bond Yield

 

Dividends and interest rates

We all want to grow our money. But exactly how does your money grow? Of course, there is market growth, as we watch stocks climb.

But we also need to look at things like dividends and interest rates. The nice thing is that these can continue to pay no matter what else is happening in the financial markets.

♦   Why Does My Mutual Fund Pay a Dividend?

♦   Why Is Annual Percentage Yield Higher Than My Interest Rate?

 

Investment basics

As I mentioned earlier, smart investing comes with self-education. Luckily, you don’t need to know every single detail of how financial markets work to grow your money.

But there are some things that can help you make wiser decisions. So here are some articles that offer investment basics to help strengthen your financial literacy foundation:

♦   MBA 101: Guide To Basic Finance Concepts

♦   Portfolio Theory: Why Diversified Investing Is So Important

♦   Banking Basics: Often-Asked Banking Questions

 

♦   Chase Mobile App Review (from a Reluctant Convert)

♦   My Experience Opening an Account with Ally Bank

 

Retirement

Over the years, most of us we put money into retirement accounts. Or at least we try to. And then, when we finally reach our retirement years, there are even more things to think about. Some articles to help (more to come):

♦    Difference Between a Roth IRA vs Traditional IRA

♦    Should I Switch From Medicare Advantage To Medicare Supplement?

♦    Retirement Reality:  So What Happened To The Dream?

♦    Stock Market Averages & Your Retirement