Investing is about putting money into assets that, you hope, will increase in value or produce income over time. Investments can be’real’ – like property, art or gold coins – or financial, such as shares in companies (stocks), or bonds issued by companies or governments (“corporate bonds”). This link theinvestorscentre.co.uk

Whether you want to build wealth, meet retirement goals or get out of debt, investing can help. But it’s important to be prepared and know your risks. Make sure you have an emergency fund with three to six months’ worth of living expenses and pay off any high-interest debt before you start investing. You should also consider your level of risk tolerance and how quickly you need to see a return on your investments.

If you are a beginner investor, you might be best off sticking to lower-risk investments, such as index funds and ETFs. These invest in a broad collection of stocks, meaning if one performs poorly, it’s unlikely to have too much of an impact on your overall portfolio.

Investing 101: A Beginner’s Guide to Building Wealth

For those who are more experienced, it may be worthwhile to explore higher-return investments. However, you’ll need to be aware of the risks and understand what you are getting into, including whether your investments are taxable. Fortunately, more resources are now available to help people of all experience levels, from robo-advisors that can create and manage a portfolio at low cost, to fee-only financial planners who do not earn commissions on the products they sell.