Today, starting to invest early is not only an option, but almost an obligation if you want to have good financial health in the future. As much as it hurts us, the volatility that the markets are experiencing today has a negative effect on your money. If you’re just starting to save, then investing some capital now will help ensure a cushion later.
If we take into account other factors such as inflation, this need is even more important. Assuming an annual inflation rate of 2%, our purchasing power decreases by 0.2% each year. However, given that the current level of inflation exceeds 6%, we must consider the possibility of even greater losses or even entering a new recession in the coming years.
But, what can you invest in if you have never done it? There are several options, which are more or less interesting depending on factors such as how much you are willing to risk, the capital you have available right now and what income you hope to achieve.
For example, if you want to start investing your money right away and you don’t have a lot of capital, some products like cryptocurrencies or the stock market can be a great option. On the other hand, if you have a lot of money available to invest, there are safe bets like investing in real estate in Mallorca or in any other place with a lot of tourism.
If you still don’t know where to start investing, you’re in luck: in this article we give you several very interesting options to get more out of your money.
What to start investing your money in if you are just starting out
1- Invest in real estate
Real estate investing (REI) is among the most common forms of investment around the world. There is no doubt that there are many reasons why someone would want to invest their money in apartments or physical properties: greater stability, large price increases in a short time, the possibility of obtaining “passive income” with a rental…
However, many people believe that they can’t start investing in real estate if they don’t have a lot of money. In the past this was true: you needed to apply for a mortgage to buy a house and be able to rent it, with the aim of getting a good return on rent.
Today, however, the practice of crowdfunding to buy houses is becoming more and more widespread. In this form of investment for people without much capital, several participants decide to buy a property together to later resell it and thus generate a certain profit. This alternative opens the doors to investment for people without a large initial capital.
2- Investments in index funds
Index funds were among the investment trends for 2021. It seems that investing in index fund stocks in 2022 will continue to be a very popular option for investors. And it is that index funds offer an easy way to start for people who want to invest but do not know anything about how to do it. They are also cheaper than other alternatives and offer better security.
An index fund, or simply fund, tries to replicate the behavior of a highly important stock market fund such as the Ibex 35. This means that the management of these portfolios is quite passive, so great knowledge is not required to win. money with this method.
In addition, the fact that there is hardly any barrier to entry to start investing in this methodology makes it a very interesting option for many novice investors in 2022.
3- Purchase of cryptocurrencies
If you are a little up to date in the world of the internet, surely you have heard of cryptocurrencies. These digital assets are intended to supplant traditional currencies, with the aim of creating a more stable and free currency that is not subject to inflation.
However, today cryptocurrencies are also a great way to earn money passively. If you know what you are doing, it is possible to achieve incredible returns by investing in this sector.
Of course, of the three options that we have mentioned, it is also the one with the highest risk. The good news is that regardless of your starting capital or the amount of risk you can bear, you can always find an alternative that suits you.
