If I want to get into investments and have some money to get started with, how should I invest $10,000?
Being in a privileged position to say that you have $10,000 to invest, is a little more than a dream these days as the rising cost of living, coupled with the flawed fiscal system is making life very difficult to enjoy financially, let alone encouraging an environment where anyone can save up amounts of up to $10,000 and put that aside for investments.
If you have $10,000 to invest however, you are in very good company as that is a great number to work with, as it allows you the luxury to put some of it into experimentation, tapping into investment markets that are a little bit risky but have possible future prospects of exploding into something really big, as well as playing it safe by investing in the tried and tested investment structures that will have you drawing slow and steady gains, which are almost guaranteed.
It must be said that the biggest portion of your $10,000 investment should be pumped into long term investments, which do have slow and steady gains, but could have very favorable implications to your overall savings. The issue of compounded interest usually takes about seven years for your initial investment to double, provided you don't tamper with your contributions or dig into your long term savings.
Long term investments can include the likes of government bonds, positions on stocks that you hold for periods of up to 10 years or more, pooling your money with other investors to take advantage of bigger overall returns, which translate into bigger dividends and anything else that you don't expect to keep an eye on every second day. Rather, you keep tabs on how it is doing over a longer period of time, if you want to analyze the trend, but you generally tuck it away at the back of your mind and only revisit a long term investment after a set period of time, of minimum 10 years.
From your 10 000 which you have to invest, probably about 4-5k of that should go into long term investments, with the second biggest portion of that going into medium term investments and then obviously the smallest portion to short term investment, which have much higher levels of risk but could really get big if you get it right.
Medium term investments can be rather tricky however, as this is the investment bracket from which you will essentially want to draw your monthly living, so you will have to make sure that the money you make as your ROI (Return on Investment) is enough to cover your living expenses.
The best way to do this is invest in structures that yield passive income, like online marketing and sales as this is one of the fastest ways of making money, since the online commercial scene essentially never sleeps.
You can be sleeping, as a resident of the USA and have your online e-store open for business 24/7 and servicing another part of the world while you enjoy your sweet dreams.
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