2. Buy a home to start with investing

Are you planning to buy a home? Then stick to your plans as buying a home is one of the smartest ways to invest. You put money into your home every month when you pay down your advance, and by this you could gain capital appreciation as home values rise over time.

But home ownership is only smart if you look at it as a long term investment. Always remember that buying or selling a home involves transactional costs like mortgage closing fees and real estate commissions, which is one reason why real estate is rarely a short term investment.

3. Taxable accounts are good to invest

Since retirement accounts are subject to contribution limits and cannot be withdrawn until reaching a minimum retirement age, you should think of investing some money in regular, taxable accounts.

Try to use your tax-benefited retirement accounts, such as a non-taxable Roth IRA or a tax-deferred traditional IRA or 401(k), that show higher returns. Use your taxable accounts for funds you need to access sooner and for additional investments that exceed the retirement account contribution limits.