Investing is a way to set aside money while you are busy with life and have that money work for you so that you can fully reap the rewards of your labor in the future. Legendary investor Warren Buffett defines investing as "…the process of laying out money now to receive more money in the future."1 The goal of investing is to put your money to work in one or more types of investment vehicles in t
he hopes of growing your money over time. Let's say that you have $1,000 set aside, and you're ready to enter the world of investing. Or maybe you only have $10 extra a week, and you'd like to get into investing. In this article, we'll walk you through getting started as an investor and show you how to maximize your returns while minimizing your costs. KEY TAKEAWAYS
Investing is defined as the act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit. Unlike consuming, investing earmarks money for the future, hoping that it will grow over time. Investing, however, also comes with the risk for losses. Investing in the stock market is the most common way for beginners to gain investment experience. What Kind of Investor Are You? Before you commit your money, you need to answer the question, what kind of investor am I? When opening a brokerage account, an online broker like Charles Schwab or Fidelity will ask you about your investment goals and how much risk you're willing to take on. Some investors want to take an active hand in managing their money's growth, and some prefer to "set it and forget it." More "traditional" online brokers, like the two mentioned above, allow you to invest in stocks, bonds, exchange traded funds (ETFs), index funds, and mutual funds.
