ARE YOU READY TO BECOME AN INVESTOR? So who is an investor? Can anyone be one?
The truth is, we are all investors. When we hear the word investor we immediately think of Wall Street, nice cars, lots of cash. Sure, that's just one type of investor, but so is the owner of your favorite Armenian bakery. An investor is a family saving for their kid’s college, or a college student surviving on the dollar menu. We are all investors because we manage and spend money in hopes of receiving something in return.
An Investment is a commitment of money or other resource in which you think you will reap future benefits.
*Perhaps you invest better oil in your car? What’s the benefit?
*You invest more time in your studies? What’s the benefit?
- What kind of investments are out there?
You have to start somewhere. At the early stages of the investing process, an important question needs to answered. Can I afford to invest?
The money you use for investing can come from anywhere- a savings account, birthday money, or even a poker win. If you have money put aside, you’re ahead of the game. The more you start with, the better your earning potentials.
Rule: NEVER BORROW MONEY TO INVEST
A simple way to understand if you can afford to invest is to see what you have left after paying all your bills. If it’s around $100, perfect, start saving the money in a “money market mutual fund”. Think of the money market mutual fund as a holding tank for your money while you decide what to do with, it’s always a plus when you earn money by doing nothing.
