| Investing money is a great idea for individuals who | | | | Bonds are also a safer type of investment; they |
| are looking to earn extra money, start a financial | | | | work much like CD's. The difference is that bonds are |
| portfolio, and save for huge milestones throughout | | | | issued by corporations to you for a certain amount |
| their lives such as retirement. There are several ways | | | | of time but these bonds are issued in order for the |
| to invest money, doing you research and finding out | | | | borrower to making long term investments into their |
| which investment is right for your situation is | | | | corporations. Bonds are not money market tools such |
| imperative. | | | | as CD's. These are safer investments because the |
| You can invest your money in various ways. You | | | | corporations are beholden to return your initial |
| must first determine how much you have to invest, | | | | investment plus interest back to you. |
| the time length you can invest, and what risk you | | | | You can also choose to invest in stocks. Stocks are |
| are willing to take with this money. | | | | shares of companies which your purchase. The price |
| Certificates of Deposit, or CD's, are a great, safe | | | | of these stocks will fluctuate in the stock market |
| way to invest money. CD's can be purchased through | | | | based on how well the business is doing, the |
| your bank; you are essentially lending money to your | | | | economy, and other factors. This can earn you |
| bank. The bank will sell you a CD, use the money for | | | | money faster but also has a substantial amount of |
| a set period of time from as little as six months to | | | | risk. You are not guaranteed at any point to make |
| several years and then pay you interest which will | | | | money or to even receive the amount of your initial |
| compound on the money you have loaned them. This | | | | investment back. |
| is a safe investment because the bank and you are | | | | These are three popular ways to invest money and |
| agreeing on a contract in which your money, with | | | | are not the only options one has available. However, |
| interest will be there in a certain period of time. Just | | | | when deciding between these three, while other |
| be sure you know how long you are willing to invest | | | | factors play a key, the major decision you must |
| because if you remove the money early you will | | | | make is how much risk you are willing to take with |
| receive penalties for early withdrawal, with will cost | | | | your investment. |
| you money on your investment. | | | | |