Beginners guide to investing in stocks

You need to begin your beginner investing by performing an assessment of your personal finances. If you wish to invest in stocks, bonds, mutual funds or even real estate, you need capital to invest.

Construct a net worth statement which will list your assets (cash, private property, savings, etc) as well as your debts (loans, credit cards, mortgage, etc).

Look closely at your debt position and determine if you can afford to invest now. It is much better to pay off high interest debt (12% or higher) that it is to invest the same money and earn 10% per year.

If you need help with this net worth statement, simply go to Microsoft’s’ site and download a free evaluation copy of Money.

It explains step by step how to create this statement.

Now for the next step in Investing for Beginners… Continue reading Beginners guide to investing in stocks