Once I finished school and started working it did not take me long to realize I had to start saving some money to "thrive", not just survive.
I recognized there were only so many hours in each week that I could work. I had to work smarter. I had to put my money to work!
I could not ignore the dollars starting to build in my savings account. The bank was paying low interest so I knew my money could not grow very fast.
Taking some risk, I learned to invest.
I started small by opening a mutual fund account at Vanguard Funds. I chose a fund that invested in the top 500 companies in the U.S. That meant I owned a little bit of 500 different companies. It's called diversification. If something negative happened to one company, the other 499 could do well and compensate for the losing one.
I did not buy just one stock which is like putting all my eggs in one basket.
Vanguard had a minimum initial purchase of $3000 which is the amount I invested. (Some companies charge less, some charge more.) I then set-up automatic withdrawal from my savings account for $100 a month.
Over time, I watched the account grow - with the normal ups and downs of the stock market. When the account reached $10,000 I bought another mutual fund and switched my $100 per month to the new fund. This fund held international companies - all outside the U.S. When the international fund reached $6000 I purchased yet another fund - a total bond fund. And again, changed the $100 to build the new fund.
Stocks and bonds sometimes move in sync and sometimes not.
We never know year to year which part of the market will do best so we buy a little of each.
This might sound very basic but many people have no idea how to start investing. It does not require a great deal of money. It does require determination and patience.
I have had great satisfaction watching my money grow. I am willing to help anyone get started. Call or email with your questions.
