Let's start with two basic questions:
Where should you begin?
How do you begin?
Those two inquiries might seem daunting, especially if you've encountered the array of intimidating Investing terms — like price to earnings ratio (p/e ratio), market capitalization, and return on equity. But getting started with investing isn't as scary as it might seem.
The First Investing Step Is Figuring Out Which Types of Assets You Want to Own
Let's start with this basic truth: At its core, investing is about laying out Money today with the expectation of getting more money back in the future — which, accounting for time, adjusting for risk, and factoring in inflation, results in a satisfactory compound annual growth rate, particularly as compared to standards considered a "good" investment.
That's really it; the heart of the matter. You lay out cash or assets now, in the hope of more cash or assets returning to you tomorrow, or next year, or next decade.