INVESTING

INVESTING
Getting started
You want to start investing, but you can barely make ends meet. Here are some simple steps you can take to get started:
Set your goals. Decide what you want to achieve.
The best way to become financially independent is to save at least 10 percent of what you make.
Examine your spending habits. For three consecutive months, write down every penny you spend. Then review the data and determine what you can give up.
Test your limits. Cut back on spending as far as you can. If you find you've gone too far for your comfort zone, add a small amount back in.
Take it slow. If you try to change too quickly, you could get frustrated and give up. Be sure you can live with the changes you make.
Work with one or more friends who also want to be more frugal.
Pay down debt. Then begin investing money in a retirement plan. Investing in stocks is more risky but has higher potential rewards over the long haul compared with bonds, annuities or money-market funds.
Diversify: You should own at least 10 stocks in various industries. An easy way to do this is to invest in a mutual fund.
Max out, to the best of your ability, your tax-deferred retirement accounts, especially if your company has a matching 401(k) program.
Source: www.womensinvest.about.com, Gail Buckner, Putnam Investments