Investing your money into the right opportunities can net you a lot of returns in the long run. However, if you’re only starting out the risks are considerably higher. Take your time and research into which markets you might enjoy investing in. If you can’t find one, have a look at this shortlist of investment opportunities for new investors and try them out.
This is the quintessential market when it comes to investments. Everyone who wants to invest is in the stock market. The logic behind it is simple, but the execution is very complicated. A good rule of thumb when it comes to investing is to never put all your chips on one table. If you’re investing all your money in one stock, you’re already making a big mistake. Make sure to spread your investments to maximize your returns.
The best way to start is to invest in an index fund. It might take longer for your investments to return with a higher yield, but at least you are safer than those who invest in blue-chip stocks. However, if you want a more volatile market that can deliver higher yields during a shorter period, your best bet is to invest in blue-chip stocks. You have a higher risk by doing so, but it can be your while once you have invested properly. Make sure to do your research in various market sites before you go investing in blue-chip stocks. They usually have market forecasts that can aid you to choose which stock you should invest in and for how long.
What makes this investment opportunity so beginner-friendly is that there are various apps that you can use to simulate your investments and see where they can lead. So you can practice without any real cost or risk to your investments. Additionally, some apps can even help you invest in the stock market, so you can manage other investments while letting the app do all the work for you.
Money Market Accounts
Money market accounts are the best place to put funds that you’re not planning to use. Money market accounts (MMA) or Money market deposit accounts (MMDA) are bank accounts with high-interest rates and insurance protection, given that you can keep the account at its indicated level. Many banks that you invest your MMA in might impose fees on you if the funds are at a certain minimum. So the best funds to invest in MMAs are funds that you are not planning to use for a long time.
Compared to other investments, there isn’t much to do with your investment in MMAs aside from investing more money into them. The more money you place into your MMA the bigger the interest you would get from it. Some investors might think that it’s a bad investment since it’s so stagnant, but if you still have a day job or starting out and have some money to invest, MMAs are the best place to start.
Real Estate is always on the list of investment options because unlike any market or industry, the need for real estate is always rising. People are always in need of a place to stay. If you want to be a full-time investor but do not know where to start, investing in real estate is always a good choice. Your starting investments in real estate shouldn’t be a full-blown investment on land or a house. The best start is through rentals. If you own an apartment and currently have no need for it, then post it as a space in AirBnB. But be aware of where your apartment is located because it might be better for long-term rentals if it’s close to a university or workplace.
If you are finishing payments for the mortgage for your first house, it’s always good to try and refinance it. Refinancing your mortgage can lower your payments for the house in the future. You can also use the home equity from it to pay off other debts. However, despite paying less, refinancing may also mean that you’re paying for a longer period. So it’s best to weigh the pros and cons before you choose to go down this path.