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. Investing is a means to a happier ending. 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 the hopes of growing your money over GSBM.
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.
Investing Through Your Employer
If you’re on a tight budget, try to invest just 1% of your salary into the retirement plan available to you at work. The truth is, you probably won’t even miss a contribution that small.
Work-based retirement plans deduct your contributions from your paycheck before taxes are calculated, which will make the contribution even less painful. Once you’re comfortable with a 1% contribution, maybe you can increase it as you get annual raises. You won’t likely miss the additional contributions. If you have a 401(k) retirement account at work, you may already be investing in your future with allocations to mutual funds and even your own company’s stock.