Investing isn't just for the wealthy elite. You can invest money and earn returns to achieve your financial goals. If you're new to investing and wondering where to start, this Investing 101 guide will provide the information you need to make informed decisions. So, what exactly is investing? Simply put, it means putting your money into a range of assets (like stocks, bonds, mutual funds, or real estate) to increase its value over time. Investing is not a get-rich-quick scheme but rather a long-term plan that requires patience, discipline, and a willingness to take some risks.

To help you get started, here are some tips and strategies for investing:

1. Set your financial goals: Think about your goals before investing. Are you looking for short-term or long-term investments? Are you saving up for a down payment on a house, planning to start a business, or hoping to retire early?  Are you looking to make a quick profit, or are you playing the long game? Having clear goals will help you stay focused and determine your strategy.

2. Start small: You don't need much money to invest. Many apps and online platforms allow you to invest small amounts of money (as little as $5) in a diversified portfolio. Some popular options include Robinhood, Acorns, and Stash.

3. Educate yourself: Investing can be intimidating, but plenty of resources exist to help you learn. Read books, watch educational videos, and attend webinars to understand better how the stock market works and how to build a balanced portfolio.

4. Diversify your investments: Don't put all your eggs in one basket. Diversification is key to reducing risk and maximizing your returns. Spread your investments across different sectors (like technology, healthcare, and real estate) and asset classes (like stocks, bonds, and real estate).

5. Stay focused: Investing is a long-term game, so don't get distracted by short-term market fluctuations or sensational news headlines. Stay disciplined, stick to your investment plan, and avoid making emotional decisions. Not sure of all the investment options? Here's a list of the top 5 ways to invest your money. 

1. Stocks 

Investing in stocks means buying a share of ownership in a company. As the company grows and becomes more profitable, the value of your shares may increase, which can result in good returns over the long term. However, stock prices can also be volatile and subject to market fluctuations.

2. Mutual fund

Mutual funds are investment vehicles that pool money from various investors to invest in stocks, bonds, or other securities. Investing in a mutual fund exposes you to a diversified portfolio of stocks, which can help you spread risk and earn higher returns over time.

3. Real-estate 

Real estate can be lucrative, mainly if you can generate rental income. You can invest in real estate by buying and leasing property directly or by investing in real estate investment trusts (REITs), which offer investment opportunities in commercial and residential properties. If you’re looking for an easy, low-cost way to invest in real estate, some startups offer fractional ownership opportunities, such as Here, Arrived, Fintor, Fractional, and Lofty.

4. Bonds

Bonds are loans that you give to a company or government, and in return, you receive interest payments until the bond's maturity date. Bonds can be valuable for reducing risk in a portfolio, as they tend to be less volatile than stocks.

5. High-yield savings account

A high-yield savings account is a great way to invest your money. A high-yield savings account is a type of savings account that offers a higher interest rate than traditional savings accounts. The interest rate on these accounts typically varies based on market rates and can fluctuate over time, but high-yield savings accounts offer greater returns on deposits. Online banks or credit unions often provide these accounts, which can have lower overhead costs than traditional banks. High-yield savings accounts are an excellent option for earning more without taking on significant risk. They provide a safe and secure way to grow your savings over time while allowing you to access your money when needed. By following these tips and strategies, you can start building wealth and securing your financial future. Investing may seem daunting initially, but with some education and patience, you can make your money work for you!