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Investing for Beginners: How to Start Investing the Right Way

Investing for Beginners

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This investing for beginners guide will answer all questions you may have about investing, from where to invest to how to invest. We highly recommend you to check our glossary section to familiarize yourself with the financial vocabulary.

Investing is the best way to get rich. Contrary to popular belief, it is not only for the rich. Anyone can invest as there are several investment opportunities. You only need the right information to get started.

Let’s get started.

What is Investing?

Investing is defined as the act of committing capital or money to an endeavour with the intention to make more money.

Investing is not the only way to earn money but it’s the quickest if you know how to invest. You must be clear about:

  • What or how much to invest
  • Where to invest
  • When to invest

Investing is also largely about knowing when to take out the profit. Wrong timing can be catastrophic.

Why is Investment Important?

Investing ensures future and present financial security. It can help you live a luxurious life without worrying about bills and finances. It’s also important to live a healthy life as a lack of money can lead to depression and other health issues. Moreover, financial insecurity can also lead to relationship issues, including problems in starting and managing a family. Investing helps make sure your children can go to college and you can live peacefully.

Lastly, investing is also important to retire peacefully. If you invest your money properly, you will have enough money to not worry about food and bills once you decide to hang the boots. In fact, you can even receive a regular stream of money if you invest your money in the right way.

What or How Much to Invest?

This is the first question you should ask yourself before investing any money.

It can be very difficult to decide the amount of money to invest since there is no secret formula.

Pay attention to the following factors to understand how much you can invest:

1. Calculate Your Earnings: Be aware of how much money you make. It can be easy for salaried individuals to calculate monthly incomes but freelancers or business owners often find it difficult to reach a reliable figure.

In such a case, it is best to take estimates or average numbers. Knowing how much you make will help you decide how much to save and how much to invest.

2. Set Your Financial Goals: People invest to make more money, usually to make big purchases in the future. They have goals, i.e: to buy a new car or move to a bigger house.

Knowing what you want or how much money you want can help you decide how much money to invest.

Technically speaking, the more money you invest, the more money you’ll make. But since money is not infinite, it’s important to set goals.

3. Create a Budget or Spending Plan: I emphasize on the importance of saving money and only investing the money you can afford to lose.

Despite what everyone says, investments can be very risky. You can lose a large chunk of your money, hence you should never invest all that you have.

Creating a budget can help you decide how much money you can easily afford to invest.

Remember that saving and investment are not the same thing. Your savings are usually stored in a bank account for you to access whenever needed, whereas your investment is not always liquid.

We’ll talk more about this later in the guide.

You can invest as little as $50, however where you can invest largely depends on how much you can afford to invest. For example, it will be mighty hard to buy a property from the profits of your $50 investment, but you can put that $50 in an account that gives good returns.

Pay Off Debt Before Investing

See Also: Investment Risk Management: Make More By Risking Less

How Much to Save and How Much to Invest?

This can be difficult to answer but most experts suggest saving 15% of your total income and investing 10% of your earnings. However, it may vary depending on your personal and financial situation.

Let’s say you make $10,000 per month. You spend $8,000 on food, rent, etc., and are left with $2,000 to save and invest.

Following this formula means you should invest $1,000 and save $1,500 but that may not be possible since you’re only left with $2,000. In such cases, it is best to look at your savings account and make a judgment.

Similarly, let’s say you only spend $5,000 and have $5,000 remaining. Again, make a call based on circumstances.

If you expect to spend a lot of money in the next few months then you should save more and invest less, whereas if you feel you have enough money in the savings account then you can invest more and save less.

All in all, investment and saving are both important.

Not having enough savings can cause you to break your investment portfolio, which may turn out to be very costly.

Similarly, not investing and only saving means underutilizing the money that you have and can make grow.

Where to Invest?

There are several options to choose from. Some of the most common choices include:

Stocks

Most people think of stocks when they think of investments. They’re the go-to option. In fact, billionaires like Warren Buffett credit stocks for their fortune. Hence, it may be a good idea to turn to stocks.

Buying stocks means owning a small part of the company. You can buy or sell stocks and also enjoy profits if the company pays divides, however you may not have the right to make decisions unless you own a large percentage of the shares.

You may invest in public or private corporations. Moreover, you must also select between preferred and common stocks.

ProsCons
There are various options to choose fromReturns are not guaranteed
Your investment is highly liquidStocks may lose value
Dividends can be huge
What are Stocks

See Also: Wealthsimple Review: An Investment Platform That Uses AI to Make Investing Simpler to Everyone

How Will I Make Money?

You will make money in two ways:

  1. When the company makes a profit and pays dividends.
  2. When the shares gain value.

You can sell shares at a higher price to make a profit or continue to enjoy dividends. However, remember that not all companies pay dividends, therefore make sure to do your research before you pick a stock to invest in.

How to Invest in Stocks?

You will have to open a brokerage account which you can do by visiting one of the firms closest to you, the nearest stock exchange or an online brokerage house. There are also online brokers that offer “robo-advisor” services so you can invest your money with the help of artificial intelligence. Check out Wealthsimple for that.

The broker can help you complete transactions but he or she will not make buying and selling decisions for you, thus it’s best to educate yourself.

Also, remember that past performance may not be a good indication of stocks trajectory, so always keep yourself updated on the latest stock stats.

Moreover, you can also invest through your employer by investing a percentage of your earnings to your retirement fund.

Real Estate

Real estate is one of the fastest growing markets out there. Real estate prices are increasing at a rapid pace, hence it may be a good option to invest in properties.

You can choose from commercial or residential properties, based on your goals.

While real-estate is great, it may only be suitable for long-term investment as it can take a while for properties to rise in value.

ProsCons
High returnsLess liquid and more paperwork
A regular stream of incomeCan take time to grow
A huge number of options to choose from

How Will I Make Money?

You can make money in two ways:

  • By Earning Rent: You can rent out your property and earn a regular income. This can be a good option if you’re in need of a continuous stream of money.
  • By Selling The Property: The increase in value is your profit, however you may have to pay taxes as well. The good thing is that property can give you huge profits since prices can rise by 10% or even more in a single year. Thus, a property worth $50,000 can make you a profit of $5,000 in a year.
Make Money in Real Estate

See Also: Fundrise Review: Online Real Estate Investment for Everyone

How to Invest in Real Estate?

You can invest in two ways:

  • Buy Your Own Property: This can be a good option if you want full control over the selection of property. However, you will need a good amount of money to purchase your own property.
  • Turn to a Real Estate Investment Trust: It can be a good option if you are low on funds. Real estate investment trusts work same as mutual funds. You invest your money with a trust that invests it in different properties. You can start investing in REITs with platforms such as Fundrise, Realty Mogul, Rich Uncles and others.

While it’s a great option, remember that you will have little to no control over the property and you may also not be able to withdraw money before the expiry period.

Banks and Financial Institutions

Banks still top the list when it comes to investment options. You can earn interest between two to four percent, based on the financial organization and account type you have selected.

The concept is simple. You put your money in a savings account and the bank pays you interest (monthly, quarterly, yearly, etc.).

ProsCons
No experience needed to investLow returns
Your money is safeYou may have to pay a fee if you break the fixed deposit
Regular income

How Will I Make Money?

You will earn money in the form of interest. Different banks pay different interest rates. Choose the option that pays the highest returns with the lowest restrictions.

This option can be reliable if you want guaranteed profits without any risk. However, you may not make much if you invest a very small amount.

The most important thing is to choose the right account type. For example, you can consider a Tax-Free Savings Account (TFSA) which can be a good option if you want to save taxes.

Similarly, a Registered Retirement Savings Plan (RRSP) can be good if you intend to save for your retirement.

How to Invest with Banks and Financial Institutions?

All you have to do is visit the bank of your choice and open a bank account. The agent will explain your expected returns and other conditions.

Bonds

A bond is a fixed income security that serves as a loan agreement. It’s a financial instrument that gives you the right to claim back your money from the lender with additional interest.

Bonds are time bound and you may have to pay a fee if you decide to withdraw money before the expiry date.

They are among the safest options to invest money, however the returns may not always be very high.

What are Bonds

See Also: Robinhood Review: Invest in Stocks, Options, ETFs and Cryptos, All Commission-Free

ProsCons
Guaranteed resultsLong waiting period
Safe investmentLow liquidity

How Will I Make Money?

Basically, a bond is a loan you give to the borrower. You will get it back with the interest, which will be your profit.

You will make money by holding bonds until maturity. The borrower will pay back the principal amount with interest. Moreover, in some rare cases you may also have the option to sell the bond at a higher price.

How to Invest in Bonds:

You can purchase bonds by working with an agent or buying directly from the issuer. Make sure to do a bit of research and only purchase bonds from a company that’s reliable.

Some bonds may come with very long maturity dates, up to 10 years or more.

Cryptos

It is a growing but highly risky investment option that’s also not legal in many parts of the world.

Cryptos are digital tokens you can use to sell and purchase items on the internet. Some of the most popular digital coins include Bitcoin and Ripple.

ProsCons
You can start for as low as $1Highly volatile
Easy to buy and sellNo legal status in most countries
Big potential

How Will I Make a Profit?

You will make a profit when the coin gains in value. You can then sell it through exchanges or use it to make purchases.

How to Invest in Cryptos?

You can buy digital coins from online exchanges like Kraken and Coinbase. These are international exchanges but you may also be able to find local agencies operating in your country.

Since digital coins have no physical presence, they are stored in digital wallets. Some exchanges offer paid and free wallets but in some cases, you may have to purchase a wallet from another platform like Cryptonator.

You can invest in crypto with platforms such as Robinhood which offers commission free investing options.

What is a Cryptocurrency

See Also: What is Peer to Peer Lending and How Does it Work?

Precious Metals

You can make money by investing in precious metals like gold and silver. Many people also opt for precious metals in their retirement account as it’s said to be a safe investment.

Precious metals remain steady even during tough financial conditions, which is why it may be a good investment option, especially if you fear the market may collapse in the future.

ProsCons
High liquidityFrauds are common
Stable valueCan be difficult to store
Easy to purchase

How Will I Make Money?

You will make money when the metal rises in value. You can sell it at a higher price and enjoy the profit. However, precious metals can take a while to appreciate, hence it’s more suitable as a long-term investment.

How to Invest in Precious Metals?

You can opt to buy gold bars, invest in commodity ETFs, mutual funds, common stocks, and even futures and options. Moreover, you may even choose to go for certificates as they offer all the benefits of owning physical gold without the worry of storing it yourself.

Mutual Funds

Consider a mutual fund if you are serious about investing.

A mutual fund is a financial vehicle that consists of a number of investors who come together to invest in a number of assets including bonds, stocks, and real estate.

The mutual fund is typically handled by a third party, which may be a person or a financial organization.

The goal of a mutual fund is to maximize profit while reducing risk. Said to be more suitable for small investors, mutual funds can also benefit big investors since there are now big corporations working on mutual funds.

Mutual funds can result in losses but they are usually canceled out by the profit.

There are several types of mutual funds including:

  • Index Funds
  • Fixed-Income Funds
  • Equity Funds
  • Balanced Funds

The manager or financial institution will charge you a fee for managing your portfolio. The fee often depends on the size of your investment.

ProsCons
Less risky.You will have to pay a fee.
Anybody can investYou may not always make money.
Several options to choose from.

How Will I Make Money? 

You can make money in three ways:

  • Income in the form of dividends – usually paid once a year. 
  • Capital gains due to an increase in the price of securities. 
  • Increase in the value of fund shares you have. You may sell your shares to earn a profit.

How to Invest in Mutual Funds? 

The best way to start investing in mutual funds is to open an account with a fund house and create a portfolio. It’s important to work with a fund house that’s reliable as they will be largely responsible for the performance of your portfolio.

ETFs

An exchange traded fund is an investment fund traded on exchanges, just like stocks. It includes a variety of securities including bonds and stocks. It is quite similar to mutual funds. A very popular ETF is the  SPDR S&P 500 ETF that tracks the S&P 500 index.

ProsCons
Can be easily bought and sold.You will have to pay a fee.
Gives you access to many stocks.Can be highly unpredictable.
Allows you to mitigate risks.

How Will I Make Money? 

You can earn money in the form of dividends and capital gains if you own dividend stocks. On the other hand, if you own bond stocks then you will earn money in the form of interest.

How to Invest in ETFs? 

You can buy and sell ETFs through traditional dealers and online brokers.

Mutual Fiunds vs ETFs

See Also: What is an Exchange Traded Fund (ETF): Everything You Need to Know

When to Invest?

Newbies and even experienced investors often worry about the right time to make an investment.

Remember that as an investor, time is always on your side. Technically speaking, a well-chosen investment will always give you returns. However, the right timing can help you get more out of the same investment.

First of all, don’t let age stop you. You are never too old and never too young to make an investment. You can, however, be too inexperienced, which is why it may be a good idea to seek professional help.

When it comes to time, the most important fact is to waste none. Bitcoin, for example, was worth $0.08 in July 2010. It was a good time to invest as the price skyrocketed 900% in just five days eventually taking parity with the US dollar in the first quarter of 2011.

Those who had invested were laughing all the way to the bank but the party didn’t end there for this magical coin. It continued to gain in value nearly peaking at $20,0000 in 2018.

Many experts say you should make an investment whenever you get the chance to. Timing is of no importance, you should only pay attention to the future potential.

However, some insist that timing is important especially in the overall financial environment. For example, it may not be a good idea to invest in stocks if you expect the market to crash in the near future.

Similarly, it may be a good time to invest if you expect the market to increase in the near future. The key lies in benefiting from dips and having the ability to predict them in advance.

Here are some more tips to remember:

Start Off Young

The younger you start, the more time you will have to build wealth. One of the world’s richest men, Warren Buffett, made his first investment at the age of 11 when he bought six shares of an oil service company, Cities Service, at $38 a share.

You do not have to start with a lot of money. You can start small and make bigger investments as you earn more. Also, do not let a lack of experience deter you. You will not gain any unless you start to invest.

Pay Off Debt First

It is important to get rid of your debt before you begin to invest. This is because if your debt keeps piling on then you will never be able to enjoy the perks of investing your money. Do not make the mistake of preventing ‘investment’ over ‘monthly payments’. You can, however, choose to invest the remaining amount depending on your strategy.

Have an Emergency Fund

Consider building an emergency fund before investing your money. Your emergency fund will come in handy if you ever need money. Otherwise, you’ll have to break your investment fund, which may result in a loss.

According to experts, your emergency fund should contain at least four months’ of earning.

For example, if you earn $3,000 per month then your emergency fund should contain at least $12,000. Once you’ve saved this much, you can move to investing your money.

When to Take Out Money?

It can be difficult to know when to sell your asset. When an asset is increasing in value, you are tempted to hold on to it longer hoping it will gain more traction. But that may not always happen. This is why timing is essential to make a decent profit.

Never be greedy and always keep an eye on the market forces. First of all, never sell bonds or other fixed assets before maturity as it may cost you a lot. Secondly, never hold on to an asset if you have already achieved your goal.

Here’s how to best deal with an investment:

Stocks: It is not possible to always predict the market, hence it is best to be careful. It might be a good idea to sell stocks if you expect big internal changes in or outside the company as they may impact the value. However, some changes can also result in higher returns.

Real Estate: Some say there is no such thing as the right time to sell real estate if you intend to reinvest the money. Sell it whenever you get a good offer and invest the money somewhere else.

Cryptos: It can be a bit tricky since cryptos are highly volatile, often changing value multiple times in a day. It is nearly impossible to predict the market but it does get affected by outside forces including government decisions.

Long Term Investing

See Also: What Are Alternative Investments: Do They Fit in Your Portfolio?

Which is The Best Investment Option?

There is no best investment option as each has its own pros and cons.

Here’s a small table to help you understand the returns offered by different options:



Average returns between 1968 and 2017 The expected value of $100 invested for 18 years.
S&P 50010.05%$10,913
3-month Treasury bills4.77%$981
10-year government Treasury bonds6.76%$2,467
Gold7.35%$3,231

From the above figures, it is evident that stocks would have given you the best returns, however if you look deep you will notice that stocks fell down to about 38% on several occasions throughout history.

Whereas, gold did not fall that low very often, making it a safer option but less profitable than stocks. Similarly, bonds and bills remained highly stable but offered the lowest returns.

These factors can help you determine the best investment option:

Liquidity 

It is best to consider an asset that is liquid so that there is no difficulty in case you wish to exit. Real-estate, for example, is profitable but not very liquid.

Start Up Capital

Most people prefer to invest in an asset that does not require a lot of initial capital. Stocks, for example, do not have such requirements, hence it can be a good option for investors who do not have a lot of money to invest.

Management 

Consider an investment that is easy to manage. Big investors work with portfolio managers but small investors typically need to handle everything on their own. You may, however, opt for an option like mutual funds as it doesn’t require much management or expertise.

Risk

The best investment is the one that comes with zero percent risk. But, unfortunately, that is not possible. 

You can choose a mix of assets to create a unique mix of portfolio that offers safety. A few things to keep in mind are:

Diversification

Never put all your eggs in one basket. Diversify as much as you can. It will not only reduce the risk but also allow you to benefit from positive market changes.

The best way to diversify is to buy different assets, ideally from different sellers. Other than this, you may also consider investing in a single asset that offers diversification. ETFs, for example, are known for this quality.

Asset Allocation

Asset allocation involves balancing reward and risk by apportioning a portfolio’s assets according to the goals, risk tolerance of the investor. Since all asses have different levels of risk and return, an investor has to allocate assets carefully to ensure the risk is minimized and the profit is maximized to help achieve goals.

Remember that asset allocation can change based on your changing goals and market conditions. 

Different Investing Accounts

Investors can choose from a variety of investing accounts. Here are some of the most popular choices:

Employer Contribution/Retirement Accounts

These investment accounts are to safeguard your future, i.e: life after retirement. 

Registered Retirement Savings Plan (RRSP): This Canadian account is designed to help investors save for retirement. Investors can establish this account through credit unions, financial institutions, private brokers, and insurance providers. 

RRSP accounts are usually a pre-bundled group of assets or investments like mutual funds. But, you may also choose an empty account and select your own investments.

Anyone who has filed an income tax return in the country is eligible for an RRSP. You will receive your amount when you reach 71 years of age.

Pros:

  • Gains are tax deferred
  • Your investments can be deducted from your income to reduce the tax burden
  • There are several types of RRSP accounts including individual accounts, spousal accounts, locked-in accounts, self-directed accounts, and group accounts.

Cons:

  • Isn’t tax exempt

How much you can contribute to an RRSP varies from person to person. In most cases, you can contribute a maximum of 18 percent of your income. Go here for a detailed guide on this account type.

401 K: 401K is the American alternative to the RRSP. It helps you save for your retirement and offers some amazing features such as tax-deferred growth, employer match, and automatic contributions from your paycheck.

Pros:

  • Your money grows tax free
  • You can choose from a variety of assets

Cons:

  • Isn’t tax exempt, only tax deferred.

The current maximum contribution limit is $16,500 for adults under 50 and $22,000 for adults over the age of 50. You can withdraw money after you turn 70.5. 

Stocks vs Bonds

See Also: What is a Bond: Everything You Need to Know

Tax Sheltered Accounts

These accounts help you save money as they are tax deferred. Some options include:

Individual Retirement Accounts 

Any taxpayer can fund an IRA that may be tax-deductible. There are a variety of IRAs including Roth IRAs, and non-deductible IRAs. The best option depends on your income and goals. Also, some options may offer you tax-deduction now and some may offer you tax-free income in the future.

Roth IRA is the best option since contributions to this account are made with after-tax money. Plus, unlike other IRAs, it offers investors tax-free withdrawals without penalty.

Pros:

  • Your savings grow tax-free
  • You can withdraw your money without worries
  • No need for required minimum distributions

Cons:

  • Low maximum contribution

Tax-Free Savings Accounts (TFSAs)

Introduced in 2008, TFSAs are saving accounts designed for Canadian citizens to save for retirement by investing in stocks, dividends, mutual funds, etc. Everything you put into your TFSA account is tax free. 

All Canadians with a valid social insurance number can open this type of account.

Pros:

  • The amount you withdraw will not affect your other accounts or benefits such as Old Age Security
  • No withdrawal penalties
  • Completely tax free

Cons:

  • You will have to pay 1% tax if you ever over contribute until you withdraw the excess amount

The contribution limit to this account changes year to year and currently stands at $6,000.

Brokerage Accounts

A brokerage account is an account that’s handled by a licensed brokerage firm that trades on the customer’s behalf. All the assets in the account belong to the customer but the company has the right to execute orders.

The gains are taxable, yet brokerage accounts are popular thanks to the availability of traditional and online brokerage firms. However, it’s important to be careful when selecting a firm since your profit will largely depend on how skilled your account manager is.

Pros:

  • A huge number of firms to choose from 
  • Suitable for investors who have no experience or time to manage accounts
  • An experienced individual is taking actions on your behalf

Cons:

  • Brokerage houses charge a fee for their services

You can start as low as $500 but some top-notch brokerage houses require heavier investments. Some pay yearly profits but some may pay profits more often. Other than this, most also send regular reports regarding the performance of your portfolio.

How Can I Reduce Risk?

No investment is without risk. While there is no way to completely eradicate the risks, you can take steps to mitigate it.

The best option to reduce the risk factor is to diversify your portfolio.

Do not put all your eggs in one basket. Invest your money in different options so that even if you lose money from one investment, you can cover the loss from other investments.

Other than this, never make decisions in haste. Make each investment with a specific goal and stick to it. Do not get greedy.

Keep an eye on the changing climate and pay attention to all the signs.

Lastly, it is okay to seek professional help but stay away from scammers.

Best Investment Strategy

Here are some strategies to maximize your returns

Contribute to Your Employer’s Retirement Plan

Employer-sponsored plans can be very beneficial since they reduce your taxable income and offer tax-deferred growth. You will get free money by contributing to the account since your employer will match your contributions. 

The more you contribute, the more money you will make.

Max Out Taxed Sheltered Account

This is the best way to protect your income from taxes. Contribute as much as you can to tax-sheltered accounts and move to other options once you max out.

This way you will be able to enjoy tax-free money or more growth depending on the type of your account.

Invest Long Term in What you Know

If you want to make money then get ready to invest for the next few years. Short-term investments usually do not offer good returns. But, make sure to choose an investment that you believe in. 

Investing Golden Rules

The sooner you invest, the more money you’ll have in your account. Find the right investment plan and work on your financial goals to reach financial independence.

Check our investing golden rules infographic to find out how you can start investing the right way.

Golden Rules of Investing

Investing for Beginners FAQs

1. Is it a good choice to invest abroad?

Depends on what you want to invest in and where. For example, it may be a good idea to buy property abroad if it’s a growing market. However, you may need a representative to handle the matter for you.

On the other hand, buying foreign shares may not be much of an issue thanks to online brokerages that also often include foreign companies.

2. Should I hire a fund manager?

It may be a good idea to hire a fund manager if you do not understand how the market works. The manager can handle funds on your behalf for an agreed fee, however they may not offer guaranteed results.

3. Is there an investment that is completely risk-free?

Technically speaking, there is no investment that’s 100% safe but government-issued bonds and fixed bank deposits are considered to be reliable. However, they have their own drawbacks as well.

4. What is online trading and can it help me make money?

Online trading allows you to earn money by guessing the outcome of an asset. Many trading platforms allow you to “purchase” an asset but without ownership. You make money when the asset gains value and lose money when the asset loses value.

While you can make serious money trading, it is highly risky and you may end up losing it all. Plus, you will not own any of the assets.

Moreover, such platforms also offer marginal trading that lets you invest more money than you have. This may sound exciting on paper but can be very risky.

5. Is it a good option to reinvest my profit?

The more money you invest, the more money you’ll make. Some online brokerages offer to auto-invest your profit so you can continue to make money. However, you should use your profit if you are in need as the money invested may not always be easy to cash out.

6. Will I have to pay taxes on investments?

Yes, you may need to pay taxes on some investments. The rules largely depend on the type of investment you have.

7. Are there fees involved other than the actual investment and taxes?

Yes, you may have to pay sign up fees and commissions if you work with an agent or brokerage. Similarly, you may have to pay fees to your lawyer if you buy and sell property.

Moreover, some may charge management expense ratio (MER) which can highly affect your profit.

Final Thoughts

The sooner you invest, the more money you’ll have in your account. Find the right investment plan and work on your financial goals to reach financial independence. It’s important to get rid of debt, have an emergency fund, and then invest for your present and future so you can live and retire in peace.

If this is your first time investing then go through our investing guides to know more about the several account types and brokerage firms. It may be a good idea to work with a brokerage firm if you do not know much about investing. 

Start small and increase your investment once you build confidence. All the best!

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Investing is the best way to get rich. Contrary to popular belief, it is not only for the rich. Anyone can invest as there are several investment opportunities. You only need the right information to get started. This tutorial will answer all questions you may have about investing, from where to invest to how to invest. We highly recommend you to check our glossary section to familiarize yourself with the financial vocabulary.
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