So you are a young person with some extra cash and you want to start accumulating wealth. Congratulations! The sooner you start to build your wealth, the sooner you will be able to become financially free.

Let’s say you have a $500 - $1,000 to invest and need know the best investment vehicle for you. What you really want to know is how you can use that money to make more money, right? Unfortunately, you won’t find one right answer, just a lot of opinions and advice. Before you invest, do a bit of research, understand your risk tolerance and then take action. Here are some places to start:

Mutual Funds: A mutual fund is an investment with a financial organization that manages a portfolio of stocks or assets. Since mutual funds invest in a number of stocks, your risk is spread and the value of the fund is reflected in the performance in the securities the fund owns. Be sure to look for funds that have a minimum initial investment that is in line with what you are able to spend. Consider the fees as well, which can eat up your profits. A good fund to start with may be an index fund, which tracks one of the major stock indexes such as the S&P 500. This would provide a relatively safe, yet consistent return on your investment.

Stocks: Investing in individual stocks can be considered a bit more risky, particularly when considering the stock type and sector. Penny stocks, for example, can be a great way to loose all your money very quickly. High quality, blue chips are more likely safer bets – in general. Learn to understand how stock prices are valued and spread your risk across a few stocks that you plan to own for a few years. A subscription to www.morningstar.com may be your greatest investment, which can help you understand investing and quickly screen for the investment that is right for you.

CDs: A certificate of deposit is a perfect place to stash your cash if you want guaranteed returns and can afford to stash your money away for relatively short periods of time. Depending on the interest rates, you can generally make 5 - 10 percent on your money in a year, but you won’t be able to make any withdrawals without a paying a penalty. Check out www.bankrate.com to find the best deals.

Prosper.com: At www.prosper.com, you get to be the banker and loan other people money at a rate you negotiate.

Start a Part-Time Business: Do you want to become really wealthy? Most of America’s wealthiest people are all business owners. Researchers claim that 9 in 10 business fail, so 1 out of 10 succeed! Why not start now at building your first business? Think about what you already do with your time and how you can turn that into a cash-generating business that will return your money several times over. Visit www.entrepreneur.com for some low-cost, home-based business ideas.

Leveraged and High-Yield Trading: Trading currency on the Forex, derivatives, options and futures can yield huge profits. This, however, is not recommended for the beginning/amateur investor. These are very risky places where the big boys play, and you don’t want to be here without extensive training and money that you are willing to lose.

The important thing is to just do it and get started now. You will learn more about investing by actually participating than you ever would by reading how to invest. If you lose some money . . . big deal, get used to it, but only invest what you can afford to lose. You will make many mistakes throughout your investing career. Better to lose some now and gain experience so when your income increases with age you already have the experience to turbo-charge your wealth. You cannot put a price tag on experience.

Most importantly, seek an experienced money mentor that can help guide you through the decision making and purchasing process. Then, keep building your resources and continue to find more mentors. You will learn there are multiple ways to make money, and you just want to find the one that you enjoy, understand and is right for you.

What advice do you have for our young readers?