The Investors Centre is the act of allocating resources, usually capital, to some sort of project or undertaking in order to generate positive returns (profits). Investors may want their investments to yield income, grow in value, or achieve a combination of both.

Before investing your money, it’s important to do a clear-eyed assessment of your financial situation. Check that you have a solid emergency fund and have paid down high-cost debt. It’s also a good idea to determine how long it will be before you need your investment returns—this is your investment horizon. Younger investors typically focus on growth and wealth accumulation, while older investors often prefer income generation and capital preservation strategies.

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The best place to start is with investments that align with your risk tolerance. Depending on your goals, you can choose to diversify your portfolio further, adding other asset classes to reduce the potential for volatility and improve your long-term returns. Lastly, consider the tax impact of your investments.

There are more options than ever to get started with investing, from robo-advisors that can help you build a well-rounded portfolio at an affordable price, to fee-only financial advisors who don’t earn commissions on products they sell. But it’s important to remember that investing has risks—you can lose your entire investment. So before you make any decisions, talk to your grown-ups about what’s right for you and your finances. And never invest money you can’t afford to lose. Getting started is the hardest part, but the earlier you begin, the more time your investments will have to work for you.