When it comes to investing there are two things that every investor should have and understand, Planning and Patience.  Without these the road to investing could be extremely bumpy before you even start.

At some time in your life you have probably planned for and achieved a financial goal.  It may have been to save money to  buy a candy bar or to purchase a favorite toy.  You might have had to save money and plan when you would be able to afford the purchase.  I remember when I was young I started mowing lawns to make money.  I would make about $5 for each lawn that I mowed.  So it I wanted to buy something that was $20 I had to mow four lawns to reach that goal.  I remember that purchase as if it was yesterday.  I had the $20 saved and was ready to go buy a handheld video football game when my mother told me not to forget that their would be tax added to the purchase.  

Even though I had planned, I quickly learned that in addition to adjusting my plan I also needed to have patience.

So understand and plan for whatever it is that you want so you can set a goal.  Know how much the goal will cost and when you want to achieve that goal.  Prepare yourself for challenges and be patient if things change.  Stay the course and keep your focus.

When selecting an investment that will provide you the growth that you need to help meet your financial goals, it is important to know which investment may be best for you.  Savingyourchange.com will focus on mutual funds which are usually chosen as a vehicle for someone that has at least a 5 year investment horizon.  We will address other investment vehicles later, and remember what works best for you may not work for someone else.  Your age, your investment tolerance, and your goals and time frame to reach those goals are all things that should reviewed when making your decision.

It is never to late to start investing, but the younger you start the more time you have to help meet your needs and reach your specific goals.  The younger you are may give you a higher risk tolerance than someone who is closer to their goal.  Some individuals have a lower risk tolerance not necessarily because of time but because of another circumstance.  Many who were in the market during the recent downturn were more aggressive than they should have been and therefore lost more than they ever imagined.  Because of this they not only reviewed and reallocated their accounts, but they overreacted in some cases and lowered their tolerance.  You need to be comfortable with your mutual fund portfolio and the risk that you are taking.  If someone recommends that you purchase certain funds ask questions and understand why you decided to make a purchase.  That has been another reason so many have lost money when they invested their hard earned money.  They did not know or understand why they had purchased certain funds, someone else had suggested that they purchase or an advisor purchased the funds for them.

When you allocate your assets you will have many choices to select from.  Mutual funds are a good foundation and as you grow your portfolio you may add more extensive investments like individual stocks, commodities and real estate.  When you decide which mutual funds to invest in you will also need what percentage in each asset you would like to invest.  Allocating your assets will help manage the risk involved;  there are many factors that can affect the economic conditions of the marketplace.  A company may miss their earning estimate or invent something that will have a strong impact their earnings.   
How much diversification is enough?  While the answer to this questions seems easy, it is not.  The answer is different for everyone; it should be based on your research.  The main idea is to make sure that the different investments do not overlap each other.  If one mutual fund owns the same types of assets or securities as another, then you will have the same exposure and your gains and losses will be the same.  It is important to select the funds or investments that do not have the same exposure so that your risk is spread out evenly.

While there are many different investment tools and strategies, this is only a brief tutorial.  We encourage you to set time aside and read more about how you can broaden your knowledge.  Establish short, mid and long-term goals.  Know that they will change.  Be prepared for changes, never stop learning, and have fun!

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At this point you may have already created your user name and password, so welcome once again.  So you have logged on to www.savingyourchange.com, what happens next?

Select the 'My Account' tab.  On this tab you will see your user name, your profile and your volunteer history.  Any time you volunteer you will track the hours that you volunteered under this section by clicking on 'add hours'.  If your organization is not listed in the drop down menu, please add the information by selecting 'New Organization'.

Adding your hours is important for several reasons, you can track the contributions you make to the community.  You will also see all of the hours of those that you refer to www.savingyourchange.com.  Referring others is not a requirement but a reminder of the difference we can make when we bond together and work to make our communities a better place to live.

The next step, if you choose, is to select the 'Mutual FUNds' tab so that you can choose the mutual funds that you will track for your virtual learning and practice.

There is a drop down menu next to each asset class (defn with wiki). 

Note:  There are only a handful of mutual funds in each category for learning purposes.  When you open your own investment account you will be exposed to many more choices although with your practice and knowledge with mutual funds you will be ready to research and choose a fund that is right for you.

Open a drop down menu in one of the asset classes and select a mutual fund.  A mutual fund snapshot will appear to the right.  Now you can click on the chart and go to learn more about the particular fund that you have selected, or you can add it to your 'My Mutual Funds' practice account.  If you click on the chart to learn more about the mutual fund before adding it to your practice account another window will open allowing you to learn more about the mutual fund.  (Please read 'preparing to invest and researching mutual funds' before making your selections).  The information listed in the window will include the name of the mutual fund and the fund symbol next to it in parentheses.  You will see a larger interactive chart as well.  On the left hand margin you will see a list of categories (summary, news & info, and fund and analyst information) that will give you an in depth description about the mutual fund.

Click on 'add to my mutual funds' listed under the chart on the 'Mutual FUNds' tab once you have found your fund(s) that you will add to your practice account.  This will take you to a new screen that lists the fund(s) that you have added and will include the date, mutual fund symbol, the name and the percent allocation.  Under your fund(s) you will have the option to change current allocations or change future allocations. 

Note: Read diversifying your portfolio to learn more.

Under the 'Menu' on the left-hand side of the page click on 'My Mutual Funds' to see how your funds are performing.  This will take you to your practice account.  You will see a summary of the total shares, the amount you invested, and the current market value. 

Each time you volunteer and enter your hours you will automatically receive the virtual dollars.  The dollars will then be sent into your account based on the mutual fund(s) that you have chosen and based on the percentages you have allocated.  Based on your goal you can watch how the fund(s) perform for as long as you choose to monitor the account.  Always remember that time is on your side, and it is never to late to start investing. 

There are many games and simulations available but www.savingyourchange.com wants to make the simulation as realistic as possible.  This is why you don't start the game with a large sum of money.

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