Master the Basics of Investment and Build Your Wealth

The basics of investing include understanding different asset classes (stocks, bonds, ETFs, real estate), the power of compound interest, diversification to manage risk, and the importance of starting early with a long-term perspective. Key concepts include risk tolerance, asset allocation, and the difference between active and passive investing strategies.

You can start investing with as little as $1 through fractional shares and micro-investing apps. Many brokers have no minimum deposit requirements. The key is to start early, even with small amounts, to benefit from compound growth over time.

Index funds and ETFs are often recommended for beginners because they provide instant diversification, low fees, and require minimal research. A total market index fund gives you exposure to hundreds of companies in a single investment.

Stocks represent ownership in a company and offer growth potential but with higher risk. Bonds are loans to companies or governments that pay fixed interest and are generally more stable but offer lower returns. A balanced portfolio typically includes both.