The first step is learning about the many different ways you can invest your money and finding the path that works best for you.

When it comes to investing, diversification is key to managing risk and maximizing returns. The most common investment strategy is diversifying among the three major asset classes: cash, stocks and bonds. Once you have decided on a strategy for these three investment classes, it’s important to diversify within each asset. Simply put, you shouldn’t put all your eggs into one basket.

All investments involve some trade-off between risk and return. Diversification reduces unnecessary risk by spreading your money among a variety of investments. Aside from diversification, the single most effective strategy is to invest continuously over time with a long-term perspective.