Investing Type 1: Mutual Funds

Introduction

Hi! So we are looking at how you can invest whether you have a pot of gold at home or if you have not too much money to invest like everyone else. The idea of mutual funds have made investing a lot easier for everyone's piece of mind. With mutual funds you can open an account with little or no money at all, but the most important thing is that you don't leave your money sitting in the bank account accruing no interest or making you no money at all. If you are in the ages of 18-35, all your money that you have saved should not be in the savings account because with rising prices and increased level of living increasing, you will see that money deplete itself in no time. Also, you have to look at the fact that sooner or later you will not be working so it is important that you substitute that money from working in the future. That is what they mean by letting your money "grow" while you are young. 

How To Open An Account

Back to investing in mutual funds, so the bare minimum that you would have to take out of your paycheck monthly is $50.00. That is the bare minimum or you could add more depending on your economic situation. When you open the account, you will be asked to put down all your information, address, SSN, and the standard stuff, but you will also have to put in a checking account that the mutual fund company will be withdrawling from.


After successfully opening the account you would have to provide the $50 every month and make sure that you are accountable for it. Not it's very easy to just save $50, save on not going to starbucks for coffee, don't eat out as much; reduce a couple of outings with the buddies, don't drink so much alcohol, there are many other ways, but important thing is to let your money grow.

What Companies Are Out There

There are so many companie out there that you can invest in. The biggest names in the mutual funds are TRowe Price, Vanguard, and Fidelity. They are not limited to just those big names, but most people go with these big names and the most advertised of all the mutual fund companies out there. warning that some of the companies out there do ask for an initial deposit of some amount, but that can be waived if you sign up for the montly withdrawls. 

Go out there and start Investing, thats the best advice that any young person should start doing!