The first step in investing your money is to figure out what you want to invest in. You can use the stock market, real estate, or a brokerage account. You can make a plan that fits your goals, such as retirement. However, it’s not recommended that you invest your money in the stock market before you’re ready to retire. Instead, you should maximize your employer match, Roth, and 401(k) accounts and invest the remainder in brokerage accounts or real estate.
Another important step in investing is to get rid of any high-interest debt, which could keep you from making investments. Historically, the stock market has given returns of between nine and ten percent annually. But, if you have debt, you could end up losing more money than you make, and investing with a high-interest debt would negate any gains.
Another important reason to invest your money is to build wealth. It can fund your retirement, help you out of a financial crisis, and help you achieve your financial goals. When done correctly, investing can even increase your purchasing power over time. And if you just sold your house, investing is a great way to start putting your extra money to work.