Investing Your Money 101

You are here: Home » MoneyTalk » Additional Topics » Investing Your Money 101
holding a dollar

What is Investing?

Investing is the action of giving money or capital to an endeavor with the hope of obtaining additional income or some profit. Essentially it is trading in the money you have right now with the hopes of getting more back in the future as a result.

People will invest in all kinds of things, ranging from stocks in publicly traded companies, bonds, real estate, mutual funds, ETFs, and more. The more money that someone invests, the more money they are likely to receive as a return if there is a profit made by the entity that they invested into.

Figuring out the Assets You Want to Own

It is not particularly wise for you to just throw money out into the pitch black and hope for the best. When you want to start investing, it is important for you to figure out what kinds of assets you would like to own and being aware of what assets would potentially yield some worthwhile returns. You need to account for time, factor in inflation, as well as adjust for risk. The more you know about all of these things and how they work, the better chance you will have of picking a winner.

Investing in Stocks

Stocks are one of the most commonly pursued forms of investment. A share of stock represents a piece of a company that you own. The more shares that you own, the more money you could earn back if the company does well. At the same time however, there is much more money that you could lose should the business tank and completely go under. Everything varies depending on the value of the stock, which changes based on how well the company is doing at any given moment. That said, there are numerous companies in which investments could be made.

Privately Held Businesses

Investing in a privately held business could be an extreme risk at the start. You have no idea how things might turn out and it could all go rather poorly pretty quickly. However, if the idea is good enough and the company is run properly, then there is a chance that the reward for investing could be incredibly high. Usually when someone invests in a privately held business, it is a business that they personally own and run. However, this is not necessarily always the case, as other people may still invest on a smaller scale.

Publicly Traded Businesses

The more commonly known investment in business involves publicly traded businesses. These are the kinds of businesses that stock may be bought in, which will then give you partial ownership of it. When you buy enough stocks and end up owning more than 50% of the company’s stock, you are given primary ownership of it. This whole process is known as Initial

Investing in Fixed-Income Securities (aka Bonds)

When you are giving money to an issuer of a fixed income security, you are essentially giving them money in exchange for some interest income. You can do this by buying certificates of deposit (CDs) and money markets, or by investing in tax-free municipal bonds, corporate bonds, or U.S. savings bonds.

These are all bought through a brokerage account. You can choose between a full-service or discount model. The minimum investment varies, but it usually ranges from $500 to $1,000.

Investing in Real Estate

Investing in real estate is one of the oldest kinds of investments there is. You have a lot of different options available to you, but the more common method is developing something and then selling it for a profit. Alternatively, the other common method is buying a property and then allowing other people to use it in exchange for regular rent payments. When applied to the right investment, this could end up yielding some high returns for the person doing the investing.

Deciding How to Own These Assets

Now that you have assets figured out, it is time for you to decide how you would like to own them. Outright ownership is where you buy shares of an individual company directly or through pooled ownership. Pooled ownership is where you mix your money in with that of other people and buy multiple companies through a shared entity or structure.

Deciding Where to Hold These Assets

Finally, you need to decide where you would like to hold these assets. The way you hold an asset has a major impact on the ways in which they are taxed. You need to take some serious time and consideration with this. Your choices with this will include taxable brokerage accounts, traditional IRAs, Roth IRAs, SEP-IRA, simple IRAs, as well as family limited partnerships.

Trusted lender of over 250,000 customers2

Trusted by over 250,000 customers since 2002, we know how to do business the right way. Our US based customer service team is there for you seven days a week.

LoanMart © 2020 All Rights Reserved. Version: NMLS ID 1442517
Go To topApple Store Logogoogle play logo button


Applications submitted on this website may be originated by one of several lenders. All loans will be serviced by LoanMart. See State Disclosures for additional information.

1Loan approval is subject to meeting the lenders credit criteria, which may include providing acceptable property as collateral. Actual loan amount, term, and Annual Percentage Rate of the loan that a consumer qualifies for may vary by consumer. Loan proceeds are intended primarily for personal, family and household purposes. Minimum loan amounts vary by state. Consumers need to demonstrate ability to repay the loan.

2Based on consumers who received a loan from LoanMart from February 2002 to October 2018.

3Application processes could take five (5) minutes to complete. Upon completion, a conditional approval may be given pending review of documentation. Funding time is based on the time from final approval following receipt and review of all required documents and signing, prior to 2PM PST on a business day.

4To exercise the right to rescind, the consumer(s) must notify the lender in writing by midnight on the third calendar day from obtaining the loan. Within one business day from notice of rescission, the consumer(s) must return any monies received and fees paid on behalf of the consumer(s) by certified funds.

5Lenders recommend and encourage consumers to pay early and often and more in order to avoid additional finance charges.

If you are using a screen reader and are having problems using this website, please call 1-855-422-7412 for assistance.


Loans for certain California residents, and residents of Delaware, District of Columbia, Florida, Illinois, Indiana, Kansas, Kentucky, Michigan, Mississippi, Oklahoma, Ohio, Oregon, South Dakota, Tennessee, Texas, and Washington residents are made by Capital Community Bank, a Utah chartered bank located in Provo, UT, Member FDIC. Loans made by Capital Community Bank will be governed by Utah law and serviced by LoanMart.

All loan applications are subject to meeting Capital Community Bank’s credit criteria, which include providing acceptable property as collateral. Consumers need to demonstrate ability to repay the loan.

To learn about vehicle secured loans made by Capital Community Bank or to submit an application, please click here or visit