Ways to Invest Money

What are the different ways to invest money? What are the types of investments? Here are some investing advice.

Stocks. Bonds. Commodities. Mutual funds. What do all those words mean? To some it all looks scary. This might be because many women don't really know or understand the different ways to invest their money. Anyway, it is something that has not been made particularly enticing in the light of the global financial crisis of 2007-2009. But more and more people are learning different ways of investing money, especially single women.

Stocks and bonds are two ways to invest money that are very similar. These can be short term or long term investments, based on your preference. You probably don't want to invest in short term, volatile stocks when you are nearing retirement age. At that point you want to look for more stable, traditionally long term stocks, sometimes referred to as blue chip stocks, and bonds, or even money market funds.

Most of these types of investments are considered liquid, or easy to get to when you need them. If you still have a few decades before you will be ready to retire, you can look at other ways to invest money that are a little riskier because you have plenty of time to make it back if your investment loses value.

Another of the different ways of investing money is in commodities. Commodities are much like a stock but as opposed to stocks where you buy part ownership in a single company. A commodity is purchasing a stake in a natural resource like natural gas or precious metals.

Commodities can be one of the most fun ways of investing money due to the roller coaster price movement of the commodities market. Every expert has an opinion on commodities, and few are ever alike. Typically, however, you need to have a large amount of expendable investment money in order to buy commodities unless you can find a mutual fund that includes them.

This brings us to one of the safest and best place to invest money; mutual funds. A mutual fund is basically a portfolio of several investments that is managed by someone else. The mutual fund manager will move the investments around in order to earn you, the fund holder, and the greatest profit. A great way to find a good mutual fund is to get references from your successful friends and family, and be sure to ask how well it is managed.

Real estate is a different from other types of investment because it is a tangible asset. If you own real estate, you own a home or investment property or piece of land, and you are responsible for maintaining it or perhaps fixing it up in order to rent or re-sell it and make a profit. Some of the most popular shows on cable television are about real estate investments. This is something that can be done by anyone who is handy, a good business manager, and has the investment capital to get started.

There are certainly other ways to invest money out there, like futures, shorts, or certificates of deposit and savings accounts. How you decide to invest should depend largely on your liquid assets, your risk tolerance, your financial objectives, and how long you have to reach your goals. Investing doesn't have to be scary. If you learn about the different ways of investing money before you get started, you will find that it is actually quite fun.

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