Smart Ways to Invest

So you’ve found yourself with a little bit of extra money, but you’re not sure what to do with it.  Here are a few ways that you can wisely invest your money.

Pay off Your Debts

You wouldn’t normally think of paying off your debts as an investment, but it’s actually very important to be debt-free before you can begin investing your money.  If you think about debts, they’re much more expensive than investments are profitable.  Many investments, even good ones only return a few percent each year, while debts on the other hand, have an average APR of 15.26%.  By holding onto debt, you lose more money annually than you would earn if you invested it.  

Buy a CD (Certificate Deposit)

This is a simple yet not very risky way to invest.  You essentially give your bank or other institution a short term loan, and when it expires, you receive a small return on your money.  This isn’t the best way to invest your money, but it is very safe and a good way to invest if you’re just starting out.  

Open a Roth IRA

A Roth IRA is a tax free way to invest your money.  Any contributions that you make as you save for retirement will not be taxed by the government.  They are flexible, easy to manage, and offered nearly everywhere.  You can open one with your bank or through a financial advisor.

Contact an Investments Firm

If you don’t know where to start, and you’re looking at the stock market like it’s a difficult math problem, contact a firm that specializes in investments.  They have a lot of experience in helping people make their money grow, and they can help you find the perfect plan for your budget.  With their experienced staff at your side, you will have no trouble making your money grow as you plan for retirement.  

Invest In Yourself

One of the best things that you can do with your money is to invest in yourself.  Now we’re not saying that you should go out and buy a bunch of clothes or toys, rather, invest in making yourself more marketable and more educated.  Take continuing education courses, and even go back to school for your Master’s degree if you don’t yet have one.  You will be able to land that promotion you’ve been eyeing at work or even get a different and better job that will pay you more.  Always invest in yourself whenever you get the chance.