Good Ways to Invest Money

Safest Way to Invest Money for Stay at Home Moms

Good ways to invest money are getting more and more difficult these days, it seems. Read on to find out the safest way to invest money for stay at home moms.

Looking for good ways to invest money can feel like tip toeing through a mine field of opportunities-any of them could explode into profit or just stay stagnate. This is territory stay at home moms need to tread carefully in.

After you've created your emergency fund using 10% of the income coming into your bank account, building up 6 months- a year's worth of income, now you can think about investing your savings so it can continue to grow.

It's good to have a savings account to have your liquid emergency fund in, but in order to really see your savings flourish, it's time to start looking at the safest way to invest money for your family.

There are lots of good ways to invest money out there including CDs, stocks, or even gold and precious metals.

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CDs

What are CDs and how can they benefit you? CD stands for certificate of deposit and is considered one of several good ways to invest money.

It's a low risk investment people use when they want a small return on the investment without the worry of losing their money.

A CD is a deposit account, similar to a savings account, but with a higher yield on the interest. You might invest your money at a certain interest rate and then the bank pays on the account periodically. When they pay, depends on the length you have the investment for.

The major benefit to investing with a CD is that it's FDIC insured as long as you are with an FDIC enrolled bank. The longer you leave your money in the CD, the higher the rate of return and there can be some penalty fees for withdrawing your money early.

CDs can be purchased through an investment broker or directly from the bank. If you are looking for the safest way to invest money, CDs are a great option.

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Stocks

Another safest way to invest money is to diversify. Don't put all your eggs in one basket! Stocks could be a different answer for the stay at home mom searching to find good ways to invest money.

How do you choose which stocks to invest in or how to even go about doing it? There are four major ways: 401k plans, one of the Roth IRAs, a brokerage account, or a direct stock purchase plan, sometimes called a DRIP.

Then you'll need to decide what type of assets you might use to invest in the stocks. For example, you might invest using common stocks (business ownership), preferred stocks, bonds, money market accounts, or real estate investment trusts.

Sound confusing? It can be, but a good investment advisor can guide you to work you can best financially afford. Let's say that you don't have a lot of money to play with when it comes to stocks, but you are still interested in investing. Check out ShareBuilder.com. When you are looking for good ways to invest money, this site can help. It walks you through how to invest your money using on line tools.

You can set up automatic investments and buy and sell stocks in real time during the course of the stock market day. It can help set up IRAs for retirement, as well as, open checking and saving accounts, too.

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Gold and Precious Metals

There are lots of good ways to invest money, but when we think about savings, we typically think about paper money.

Gold and precious metals are another source for stay at home moms trying to figure out the safest way to invest money.

Unlike stocks, bonds, or CDs, gold and other metals, such as silver, are things you can hold in your hand. Many people invest in these things as a safety to hedge their bets against other forms of investing.

You may be picturing owning big bars of gold like you see in the movies, and it's true that you could purchase one of those, but a more common way of owning gold and silver is through coins.

Coins definitely fall into the category of good ways to save money, can be purchased through a variety of dealers, and are priced according to their weight. One common way to trade in gold is through ETPs or exchange traded products. These are traded like stocks through the stock exchange.

Yet another way to handle gold and precious metals would be to use a gold certificate. These are purchased through the bank and are allocated to specifically marked bars of gold. That way you don't have to worry about the hassle and worry of storing the gold if that's not your thing (personally, I like touching it).

Stay at home moms need to be thinking about creative and good ways to invest money for the future. Dabbling in stocks and bonds may be the way to expand your saving dreams. Just remember to use caution, and speak with a financial advisor to help you pick the safest way to invest money for your family.

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