Instructions

Take a hard look at the monthly budget. Before you consider any type of investment activity, it is crucial to know where your money is going. Most people find they do have some incidental expenses that can be eliminated from the budget without making a serious change in lifestyle or doing without essentials. Your income that is not needed to keep the home budget balanced will serve as your seed money for making investments.

Start with safe investments. An investment is essentially any type of financial deal where there is a chance of realizing a return on the amount of money you put into the deal. This means that a savings account at your local bank qualifies as an investment. While the interest rate is not likely to be high, the risk level is very low. A certificate of deposit is another example of a safe investment. Even something along the lines of a United States Savings Bond is low risk and a great way to begin building small but stable sources of generating returns.

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