If you want to build your wealth, making smart investments early on is key. But in the financial world things dont always go as planned. With that in mind, adding more money to your rainy day fund is the best thing you can do. And never invest anything you can't tolerate the thought of possibly losing; after all, investing is a risk.
Build your portfolio by finding the right mix of asset types and you'll have more control over how risky your portfolio is. If your investments are not performing the way you hoped, you can always adjust them by selling portions of your portfolio and consider your asset allocation before buying new assets. There are numerous brokerages all over the world. As you decide which investments to buy, start with the big picture, not the details.
Extensive research has shown that, if you diversify your portfolio, a whopping 88% of your experience can be traced back to your asset allocation. In other words, your experience will be very consistent with that of any other diversified investor with the same asset allocation, no matter which specific investments they choose.
Within the extensive categories of stocks and bonds, there are many subtypes that have specific characteristics. Depending on your goal, you may want to invest in some of these specific subtypes.
