It’s not always the smartest option
T.Dallas/Shutterstock “Over many decades, the investment that has provided the highest average rate of return is stocks,” says financial adviser Brian Saranovitz, president of Your Retirement Advisor. If you owe money on a credit card and are paying 18 percent interest, though, you should pay off that debt before investing. By sending the money to the credit card issuer instead of Wall Street, you’re effectively making 18 percent on your money. That type of high-paying investment—let alone a sure thing—would be hard to find in the stock market. Don’t miss these 11 money tips from people who managed to retire early.
Learn the lingo
Rattana.R/Shutterstock If you can’t talk the talk, don’t try to walk the walk. Not knowing the difference between EPS (earnings per share) and ETF (exchange-traded fund) could cost you a small fortune. Did you realize the much-touted Dow Jones Industrial Average is based on only 30 stocks? Websites such as MoneyTips can help you learn the vocabulary of Wall Street. Most importantly, understand what investing in stocks means: that you own a small piece of a business.