Knowledge Center
Investing 101: Tips for Investments and Money Management
investing-my-money | Read Time: 2 minutes
By WSFS Contributor | Published: 2019

For many, the idea of investing can be daunting. How much money should you invest? How should you invest it? Where? What is investing, even?
Don’t worry — investing is not as complicated as it may seem, and in fact there are some very simple things you can do to get started.
First, let’s answer the question, “What is investing?” According to Investopedia (one of our favorite financial resources), investing is “the act of committing money or capital to an endeavor (a business, project, real estate, etc.) with the expectation of obtaining an additional income or profit.” You can invest in a property, a managed fund, the stock market or something else.
In terms of personal finance, you’ll want to make sure you’ve paid down any debt and established a savings cushion before you begin investing. There is some overlap here, though: by using a 401(k), 403(b) or IRA to save for retirement, you are investing, and we certainly wouldn’t recommend skimping on retirement savings if you can avoid it.
How much money should you invest and where should you invest it? To answer those questions, first think about your goals. Why are you investing? Are you saving money for your wedding or your child’s college education, or are you investing to diversify your financial portfolio?
Generally speaking, the more immediate your need for the money you’ve invested, the more conservative your investment choice should be. Your investment choice will also depend on your risk tolerance, and how much of a loss you’re willing to take on the money you’ve invested. There are number of calculators and questionnaires you can use to help you ballpark your risk tolerance.
It’s best to stick with a savings account, money market account or CD for any funds needed in two years or less. Bonds and some managed funds are examples of conservative investment choices that are a good fit for funds needed in 3-5 years. If you have no immediate need for the money you’ve invested, consider investing in the stock market or a managed fund dedicated largely to stocks.
Investment Products: Are Not FDIC Insured | May Lose Value | Are Not Bank Guaranteed
Related Articles

How to Choose the Right Financial Advisor for You
Most Americans believe in managing their own money. While that is ok for some, for others, they may find themselves lost and unprepared for retirement. What often bridges the gap between financial freedom in retirement and those unprepared for life’s financial challenges is an Advisor.
Read More
Get More Confident about Investing – Start by Educating Yourself
At some point in everyone’s life, there is usually a reason that prompts you to start investing. Some of the reasons may include establishing an emergency fund, saving for a home, saving for a college education and building retirement funds.
Read More
Building Wealth During Different Life Stages
Investing should be viewed as a lifelong process. The earlier you get started, the better off you’ll be in the long run. Whether its saving for retirement, a new house or college tuition, most of us will need to develop a disciplined savings strategy.
Read More
Safe Investment Considerations: Tips to Balance Your Portfolio
Many people are risk averse when it comes to investing. It’s natural to be wary of the volatility of the stock market and to want to protect your savings with a safer investment option.
Read More
Saving for Retirement in Your 20s, 30s and 40s
When it comes to retirement savings, starting early is the way to go. Even if you’re saving 1-2% of your income, that money has 40-plus years to reap the benefits of interest and market gains.<br>
Read More