Investing, on the surface, seems easy enough: invest money and get even more money back.

Unfortunately, it’s not quite that simple. Few things are.

Once you begin delving into the world of investing strategies, questions begin to snowball . . . How much do I invest? Where? When will I see a return? The list goes on and on.

The first question to ask yourself is: Why am I going to invest my hard-earned money?

Easy – investing makes your money grow. It will work for you rather than you working for it.

Now that we’ve taken care of the “Why?” let’s tackle the “How?” Namely, “How am I going to start investing the right way?”

It’s time to come up with a plan. Some decide to put their savings accounts into action. Others begin by investing their 401k. If you don’t feel like using any real money at all, and just want to become acquainted with the general mechanics of investing itself, online simulators are an excellent primer and build confidence for when you decide to take the plunge (we recommend Investopedia Stock Simulator).

A good minimum amount for investing is typically $1,000. After minimum deposit requirements, trading fees, and other unexpected expenses inevitably encountered when opening an account with a brokerage, the need for this amount will become quite apparent.

“But when should i start?” If you’ve got the means, go for it. As soon as possible. Why not? The more time and money invested, the greater the potential for growth. If today you invest $1,500 into an account with a 10% annual rate of interest, a year from now it will have grown to $1,650. If you playing it smart, and decide not to withdraw any funds, a year after that your investment will have grown to $1815.

And it compounds on and on from there. Of course, putting more into your account will increase those dividends at an even greater rate.

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