It is a big mistake that many people make that investing and making money is something that only the rich do. You don’t have to be rich at all to make investments. There are so many options available that anyone can learn to invest money wisely. It all starts with a small amount of extra money. You don’t have to play the stock market or even buy any company. You can simply start a CD account, a money market account, or even a savings account at a bank.

Let that be the #1 smart investing tip: Start doing it as soon as you start having extra money to spend. The younger you are, the longer you can wait for money to wait for interest to rise. If you are investing in stocks, the longer you will have to wait for the market to move in a favorable direction for you.

Another smart and essential thing you can do is build savings for emergencies and short-term goals. Choose an online bank that offers a high APY and create a savings builder account or purchase a CD for 6 months to 2 years. Why have cash stashed away in your house for emergencies when you can keep it in an account that will earn some interest? Even if it’s only $500, you’ll end up with more money than when you started.

How to invest money wisely away from banks

If you decide to go with the CD option, just make sure you keep the money there for the agreed time so you won’t be charged a penalty for an early withdrawal. If there is an emergency, most banks will allow you to write a certain number of checks per month (usually around 6) or make payments online (up to 6).

Are you interested in how to invest money wisely when it comes to stocks? It depends on age: You should base those investments on your horizon, and your horizon is the amount of time you need to hold your portfolio before you start spending it. A general rule of thumb is to subtract your current age from 100, and then use that number as the percentage of stock you own in your retirement portfolio. If you are 35 years old, your investment portfolio should be about 65% equities.

Of course, stocks aren’t for everyone. There are other investment options such as real estate and forex trading. To really learn more about how to invest money wisely, it’s good to have the right tools and resources at your disposal. Motley Fool is a leader in investment selection and education. Sign up today for the latest stock recommendations, “initial stocks,” investment and community resources, and more.