Nearly every post, I mention saving money so that you can buy income-producing investments. Just what do I mean by investments?
I’ll tell you what I don’t mean.
I’m not encouraging you to buy individual stocks. Unless you’ve been investing for a long time, you don’t know enough to make good choices. If you start buying what might be the next hot stock, you’re nothing more than a gambler. This is not investing for growth and wealth.
I’m not telling you to look for a get-rich-quick business opportunity.
I’m not even recommending one investment type over another.
What I do want you to consider, after discussing your ideas with your financial and/or legal advisers, is that you need to focus your saved funds into standard investment vehicles such as money market funds, index funds, a Health Savings Account, a Roth or traditional IRA, or any other basic investment account. Get a healthy start on emergency funds, buy a home or rental property, and learn how to buy investments that will eventually replace your job income so that you can retire or choose to work as long as you wish.
Start with traditional and safe investment accounts, then after you get a good base amount you can start to learn about other methods for increasing your returns.