Investing is not as scary as you think!

Investing is something I was so scared to do when I was younger. I didn't understand how easy it was and I assumed that I would need a lot of money before I could start, or that I would probably lose it all if I even tried to do it on my own. That is far from the truth. You don't need to have lots of money and you should start investing as soon as you are in the workforce. Here are four ways I have chosen to invest.

Retirement

This you can't do on your own and you'll need some guidance from a professional. Don't worry, the cost is minimal and talking to them and setting up your retirement doesn't cost a thing. The standard amongst most employers is to offer a 3% match to a retirement account.  So you should in the very least put 3% of the money you make towards an IRA so you don't leave money on the table. What does this mean exactly? Well, when I first started out after college I made around $30,000 a year and I put 3% of that away into an IRA that was offered by my company. So that meant that I put $900 into the account (over the course of the year) and my company matched it up to 3% so they put $900 in. The next year I put 5% in and the company still matched only 3% of my total income so that would still be $900. So make sure to find out what your company does and at the very least put in enough for a full contribution match. This money will come right out of your paycheck and you will not even miss it. How much extra money could you be making for future you?

Money Market Savings

These are savings accounts that yield a higher return on investments because your money is invested in the stock market through a mutual fund. Wow that was a mouthful!  This means your money is put into a large pot of money from others just like you. The total is then used to buy a bunch of stock. You don't own the stock individually but a percentage of it. They in turn give you money back based on the market value. This is on average around 3% to 5% return. So, if you invest $1000 you will get on average $50 cash back per year on that investment. So Money Market Accounts give you a higher return on your investment than if you would just put it into the bank. Most banks do offer these accounts but the account I prefer to use is the Acorns app, it costs just $1 a month. I can set up a monthly contribution amount that will be withdrawn from my checking account on the day of my choosing. They also have partnerships with lots of different brands that will add money to your account if you shop with them through the Acorns link. This is the #1 reason I like this better than a bank account because they give you extra money just for shopping how you would normally. And you know your girl can shop!

Real Estate Investments

Now this is something that has gotten a lot harder to get into but, should be something on your list. A home is something we all need and use everyday. This investment will continue to grow through the years as long as you maintain and take care of your home. The hard part of home investment is that you need to have at least 3% of the cost of your home (cash in hand) to put down to get a loan. Also, there are the added expenses of closing cost and Property Mortgage Insurance (PMI) you'll have to pay if you don't have 25% of the full cost of your home paid off. I know, "Adulting" is hard. Now this all sounds scary but that's what banks and realtors are for. I remember my husband and I being so worried we would make the wrong decision or we would be house poor. That was not the case because we used professionals to help us. Our realtor took care of everything but our loan. He gave us all the facts and all the steps of the process. We also knew how much we could afford and he did the math for us so we knew approximately what our monthly payments would be. There is nothing like home ownership and I highly recommend it. We are no longer wasting money on rentals. Plus this is an investment that you can enjoy everyday. And you can totally decorate however you want!! Did somebody say Pinterst!

Buying Stock

This is something I just started doing last year and I'm having so much fun with it. My brother got me into it and introduced me to the Robinhood app. This is free to use and easy to understand. I simply transfer money from my checking account to my Robinhood account and then pick stocks I would like to buy. I chose companies that I believe in and that aren't going anywhere, like Apple and Disney. In the past year, the money I've invested has gone up and down but for the most part it's been up. For me, this is just fun money.  I plan to keep buying stocks and then give it to my children and grandchildren when I'm gone. I see it as an investment for my family. Most of the stocks I own pay a Quarterly Dividend. This is cash back you make per stock you own. If I keep this up, when I'm 70 I hope to have thousands of dollars of added income every quarter. This will be on top of my retirement. I plan to do a lot of traveling and a lot of eating when I am 70! Who needs to cook when everything can be delivered by drones and robots. The future people!

Investing is something we all can and should do. Time to start making your money make you money.  I like to think about retirement not as a scary thing but as something I should enjoy. Did somebody say beach house?! Think about how future you will thank you for the decisions that you make today. There is no time but the present. Putting off planning for the future will not stop it from happening.