How to Invest Money

By Jim Ginther, Senior Vice President of Finance

Before you put your hard-earned cash into an investment vehicle, you’ll need a basic understanding of how to invest money the right way. However, there’s no one-size-fi ts-all answer. The best way to invest
your money is whichever way works best for you. Here are some tips when considering investing.

Your Style – Active or Passive
Active investing means taking time to research investments yourself and constructing and maintaining your portfolio on your own. Passive investing involves putting your money to work in investment vehicles where someone else is doing the hard work for example a mutual fund.

Your Budget
How much money do you have to invest? You don’t need a large sum of money to start. You can begin with just $100. The amount of money isn’t the most important thing. It’s making sure you’re financially ready and that you’re investing frequently over time.

Your Risk Tolerance
Not all investments are successful. Each type of investment has its own level of risk. This risk is often correlated with returns. It’s important to fi nd a balance between maximizing the returns on your money and finding a risk level you are comfortable with.

One important step to take before investing is to establish an emergency fund. This is cash set aside in a form that makes it available for quick withdrawal. Most financial planners suggest an ideal amount for an
emergency fund is enough to cover six months’ worth of expenses.

What Now?

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