How to invest money and when

Many people start investing money prematurely - before they have their financial house in order. Then, they continue investing until they either want their money back to buy something, need their money back to pay unexpected bills, or start losing money. In other words, they get started before they have their ducks in a row. ‘How to invest money and when’ it is a common question for all. Before you start investing you should have a reliable source of income and a good cash reserve to cover financial emergencies as well as purchases you plan to make. You should have a basic knowledge of financial terms as well as of stocks, bonds and mutual funds before you invest a serious amount of money. 

For the vast majority of people mutual fund companies are the best place to start investing money, and the best place to stay. Start investing by putting your initial investment into the safest fund they have, which will be called a Money Market Fund. Here you will earn interest in the form of dividends that will be automatically reinvested for you in more shares. You will earn very little interest in because interest rates are near all-time lows. But your money is safe and you've taken the first step. Most people invest money in a number of places: scattered around in banks, with insurance agents, stock brokers, and other securities salesmen. They get confused and lose control over their investment management; and often pay high commissions and fees in the process. There's a better way to do this and save money at the same time. Open an account(s) with one or two no-load mutual fund companies. As a general guide to investing: there are mutual funds to fit just about any investing need. Here's how investing money in no-load funds works. When you invest money in these funds you do the money management by picking which funds to invest in. The mutual fund company does the best investment management according to each fund's financial objectives. You act as your own money manager by matching your goals or objectives to the appropriate type of fund and account. Mutual funds are perhaps the best-known investment vehicle. Basically, they work by pooling money from different investors under active management. Those in charge of the fund will then invest it in whatever types of investments the fund is set up for. This can range from the very high to low risk.

The best investments time is when you have your financial house in order. No one knows the best time to invest in stocks or bonds, but the best time to invest or start investing money is now if you have your ducks in a row. Now is also the best time to increase your investor IQ by learning more about investment basics and investing strategy.