I'm 18 How should I start investing my money?

I have saved about 1000 dollars to invest and have about 1500 in an ING account and 200 in a CD at 5.00% how should I furture diversify my money?

You have a total of $2,700, as I read your question. Here's what to do:

1. Go to the library and read up on personal finance. Dave Ramsey is probably the best author on the subject, IMO.

2. Get on a budget. Use that budget to spend less than you make every month. The extra money that you don't spend is called a "surplus" and will be what you use to pay off debt and put into investments.

3. Using your surplus, pay off all your debt except for a mortgage if you happen to have one. Only an idiot tries to invest when they're paying 24% interest on credit cards. Use part or all of your existing $2,700 for this step.

4. Using your surplus, next put aside 3-6 months of expenses in cash reserves in a savings account that you can access if you need it. That way, if you lose your job, you'll have 3-6 months to find another good job and not have to worry about how to pay your bills. This 3-6 months cushion is called your "emergency fund." Use part or all (probably all) of your leftover money from the $2,700 for this step.

5. Do not invest a penny until you have done all the above. People deeply in debt or who don't have cash saved for emergencies have no reason to be investing. Some other folks will disagree, but they are almost certainly broke. Don't take financial advice from broke people (or diet advice from fat people).

6. Open a brokerage account with a company that offers you a helpful financial adviser. And using your monthly surplus, put money into that account every month. Never invest in anything you don't understand. Read a LOT about investing and get a helpful financial planner. Start with some basic mutual funds or stocks in companies you think will make money.

7. Eventually, you'll probably want to buy a house, too, as a long term investment you can use!

You MUST be determined to PAY YOURSELF first. What I mean is that you need to establish a set amount to put away consistently and forget about it. Second, I suggest that you take several hundred and start some Mutual Fund MIP'S...Monthly Investment Plans...Some fund families will allow you to start one with as little as $25 month invested. Have them deduct the $ from your checking/savings account monthly and don't think about it (just make sure you've enough to cover your living expenses FIRST). GOOD LUCK!

You're young and have time on your side. You can afford to take a little risk (unless you need the money in the short-term) to possibly earn higher returns. You may want to consider investing in stock mutual funds. They are a great way to invest and diversify without having to research individual stocks. I inlcuded links for a couple of large and reputable mutual fund companies where you could open and indidual account and also have some good info on mutual fund basics. Good luck.

Hi
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If your education and living expenses are provided for then blue chip stocks is fine investment, otherwise you have enough to get through a class at community college

5% is pretty good these days
I'd stick with that for now

The first question you need to answer is, how long of an investment horizon are you looking at? When I was 18, I couldn't imagine my money being tied up for more than 5 years (let alone 5 months). The CD rate you currently have is a good one....considering it's hard to get a CD right now that pays much higher than 3%, so, well done there. The money market rates are dropping too (as I'm sure you know), and the more the Fed cuts interest rates, the further those money market rates will decline. You have some fairly low-risk options: you could buy shares of a bond mutual fund, which are generally accepted as "safe" investments. The short-term bond funds are typically the safest, but also tend to be outpaced by many of the stock market indeces, such as the S&P 500. Taking a step further, you have balanced funds (which I prefer for medium- to long-term investing, perhaps 5-10 years), which contain a blend of stocks and bonds, offering you advantages over a stock- or bond-only mutual fund. Some balanced funds are geared toward current income, investing heavily in stocks and bonds that pay high dividends, and grow in value. Others seek more aggressive growth, but mix in some bonds to balance the risk. Then, of course, there are stock funds, many of which tend to do well over the long-term. Again, it really depends what kind of time frame you're looking at, but if it were me, I'd spend the $1000 on a good balanced fund, like Vanguard's Wellesley Income Fund. Hope this has helped.

One thing everybody forgot to mention was establishing an emergency fund. This should be 3 to 6 months of living expenses that you only touch in case of emergency such as a period of unemployment or your car needs a new engine. If you use any of the money be sure to replace it as soon as possible.

I would suggest putting the money in a money market account where you can get at it without penalty at any time. With this cushion behind you you can invest knowing you have a financial fall back if the need arises.

I would also suggest doing a little reading or maybe subscribing to Money magazine.