Sv Money:investing% Communication Library

The Stock Market

Will you take the gamble?

Stocks, over the course of history, have outperformed all other investments.

HOWEVER... Stocks are not without its risks so you have to be prepared. They are best as long- term investments.

Stocks are dependent on each individual company's success, which is often unpredictable. This is why it is important to have a diversified portfolio of stocks or investments through mutual funds.

Investment options

What to do with your money

There is a wide array of various investment options for your money, each with a unique risk and reward system.

High risk investments, such as stocks, can yield the highest reward. However, since there is a high risk, there is a higher chance of lower, even negative, returns.

Low risk investments, such as U.S. Treasury Bonds, are an almost guaranteed return on investment, but for this very reason, returns are lower..

Prioritizing Finances

Prioritize what you should spend money on

Obviously, your first priorities are the bills necessary for survival, such as food and shelter.

Next comes other very important things, such as clothing and transportation.

After your first several priorities are taken care of, you can spend income on entertainment and other discretionary items.

Be smart with your money, though. Save as much as you can.