 TITLE: How to Start Investing CONTENT: What to Invest in First\n-----------------------\nThere are many ways to invest your money, but as a beginner it's probably smart to start off with smaller and less risky investments. Depending on how much disposable income you have, you may have to adjust your investment strategy to align with how much you're able to put aside each month.\nMaking the right investments requires doing a lot of research to understand what you're putting your money into and how risky it is. This research can be critical for successful investing, so don't feel intimidated by looking up company or specific mutual fund for more information. There are also ways to get around doing your own research if you just want to get started—more on that later.\nHere are some of the most common investments and a little bit about how each one works:\n*   **Individual stocks**: When you buy stocks, you're essentially buying a part of a company. Stock prices increase and decrease according to a company's value, and your investment grows (or doesn't) in direct relation to the company's performance. Imagine you buy 10 shares in a company at $5 apiece. If the company's share price increases to $8, the total value of your investment will increase from $50 to $80. That $30 dollar difference is called your return.\n*   **Bonds**: When you buy a bond, you're giving a corporation or government entity a small loan in exchange for an IOU. You can sell the IOU (the bond) at a later date and earn the accumulated interest, plus principal, paid by the bond issuer. Bonds are generally less volatile investments than stocks and can be a safe place to start for someone looking for an investment with little risk.\n*   **Mutual funds**: These investment vehicles pool together money from different investors and use that cash to buy stocks, bonds and other securities. This portfolio of investments is either actively managed by a fund manager or linked to one of the stock indices, such as the S&P 500. When you buy a mutual fund, you'll own a share of the fund and may gain a level of diversification and security you might not otherwise be able to achieve on your own or by owning just one company's stock.\nIf you invest your money in stocks, bonds and mutual funds and not in a physical commodity, such as metals or a rental home, your money will end up in one or more of the investments listed above. How you choose to allocate it and what you choose to invest in is up to you. END