Investing 101: Buy Low, Sell High {via The Rich Life}

*Each month I contribute a personal finance column to The Rich Life, an online community devoted to the practice of living a rich life with less stuff. Here is this June's contribution.

My favorite finance professor in college once gave me the sagest of advice: When it comes to investing, buy low and sell high.

So there you go – that’s it! 

Okay, I’m just kidding… kind of.  Let’s talk about that. People get really nervous when it comes to investing. They think to themselves, “I don’t know anything about the market – I can’t invest! That’s for professionals.” And while it’s true that there are plenty of professionals out there to help you (for a nice fee), it’s not true that you can’t do it for yourself. I’m looking at you, Ms. English Major: You’re perfectly capable of doing this for yourself.

Whether you choose to get help or not, investing is a must. It’s the only way your money has the chance to grow significantly. We’re not talking just keeping up with inflation, we’re talking making a return that will give you a healthy and stable financial future. 

And yes, there is risk. The greater the risk, the greater the potential reward. That’s life, and that’s also why any money you invest should be money you’re comfortable not seeing for at least a few years – my general rule is five. (For a recap on your option for investing in the short term, revisit this post.) And now, the rules… (read the entire article on The Rich Life)