Smart Investments For The Young Entrepreneur: Build Low-Risk Equity At An Early Age

 

Smart business practices start when you’re young. Whether you’re a young entrepreneur that has just opened his or her first small business, or you’re still working for someone else, but you want to get a better start on your own future, there are lots of different investments you can make. The important thing is to start young and to use this time to really build your own portfolio and knowledge base. Here are a few simple ways that you can start investing today.
 
 

 

Invest in your future through a 401K plan

 
One of the best ways to put money away when you’re younger is in a 401K plan, especially if you have a company sponsored plan that includes any sort of co-contribution. While many companies will match what you deposit, still others will match a percentage of your earnings. Regardless, all are worth it. If you’re self employed, then you’ll want to start looking at setting up your own fund with the right investment firm. You may think that retirement is ages away, but if you start young, you’ll be much happier when you’re older, and you will be able to actually retire when you want to.

 

Invest in the economy through preferred stock

 
Let’s face it, if you don’t have a finance degree, the stock market is probably pretty terrifying. When you’re younger, the concept of investing in the stock market isn’t to try to make millions of dollars, but to get a strong understanding of the market itself, so you can invest money when you have it. So, when you’re young, consider investing in one of the large, more stable companies like Apple and Target. They don’t require you to have a broker to buy and sell stock, so they are a great way to learn your way around the market.

 

Invest in other entrepreneurs 

 
For those looking to learn more about financing and world business, Kiva is a great route to go. It’s a microfinance organization that allows you to invest as little as $25 in small businesses in third-world countries. It’s a small business loan that you can offer to someone in need, who can then use that money for their own businesses. Kiva is a different approach to charity, and it’s one that is quickly growing in popularity. Plus, if you want to withdraw your money or re-invest in another business as soon as you start receiving payments back, Kiva makes it very easy.
 
 

 
This article was written by Deborah Flomberg of Examiner.com for CBS Small Business Pulse.
 

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