How to Diversify Your Investments

Never put all your eggs in one basket. This is a saying that definitely applies to personal finance. I can help show you a few different avenues to invest your money in, which will keep you safe in the long run!
Instructions
Step 1
Open up a checking and/or savings account. You've probably already done or plan to do this. Checking accounts are better to use in conjunction with debit cards. Savings should be where you stash some of your paychecks each month to build up a base "emergency fund", which should be at least 6 months worth of rent/bills.
Step 2
Try putting a significant chunk into a CD (certificate of deposit). This means that your money will be held and loaned out by the bank. You can't touch that amount for however long you designate, but it will gain a higher rate of interest than a normal savings account. 6 months and up are the terms, with longer terms gaining higher interest rates.
Step 3
Invest some in mutual funds or bonds. Mutual funds are fantastic for good returns over a long period of time. They work their magic by investing your monies into several different stocks and/or money markets, thereby decreasing risk and usually increasing profits. An average mutual fund should have a return of 8-12%. If you are a novice at finance, i would suggest opening up a fund and having it managed by a professional broker organization, such as Fidelity, Prudential, or Edward Jones.
Step 4
Another option is putting a decent amount of money into precious metals, such as gold or silver. This ensures that if by some tragic mishap, the economy crashes, you would have something left, as gold and silver can be traded and have universal value.
Step 5
Lastly, you could keep cash on hand under your mattress like the old folks used to do. This is somewhat old fashioned, but might suit you if you are one that doesn't trust banks. With the economy the way it is, i can't say i'd blame you!