I want to invest, but I do not know where to invest my money and what investments suit my financial goals.
Today, we will offer you three types of investments that you can make to build your wealth and achieve financial stability in 2021 until we answer you the question: Where to invest my money.
When it comes to the question (where to invest my money), there are many ways that you can invest money to build your wealth. Some are more dangerous, and some are less dangerous. Some have been around for thousands of years, and others have just emerged. You need to have more money for some, while for others, you only need $ 250. The options are there for everyone.
In today’s article, we want to clarify the three types of investments you should focus on if you’re going to build your wealth.
Where to invest – the capital market
One of the most popular ways to make money is to invest in the capital market.
Regardless of your choice of stocks or other financial assets, it would help if you were looking for companies that will grow soon. In other words, you should consider companies like Amazon, Google, or Tesla.
This investment activity is very demanding, requires a thorough education in the financial field, and requires excellent intellectual effort. Plus, you don’t know if your choice is good or not until long after the initial investment has begun.
The second way to invest in the stock market is actually to own the capital market. Or at least a large portion of it. This time, you are not trying to find the next company that will be a hit, but you are based on how the market economy works.
Investment in the entire capital market is made through mutual funds or ETFs. This investment fund allows you to trade in the largest listed companies in developed countries such as the USA, European Union, UK, or Japan.
Investments made through these mutual funds / ETFs have many advantages. These include simplicity, accessibility, and diversification at a discount.
Investing in gold
You can invest money in gold to build a better financial future. But a minor point should be clarified, which is the fact that gold should represent a relatively small portion of your investment portfolio.
Gold is not intended to enrich you. It doesn’t offer you huge profits just because you own it, and it doesn’t have much use in the industry. The purpose of gold is to act as an insurance policy and protect you in situations of market volatility or times of economic crisis.
Gold has traditions dating back thousands of years where it was used as currency. That is why people trust him that he will maintain his value in the worst situations. For example, if people no longer trust the governments and the currencies they issue, then it is assumed that the world will start using gold again as a currency.
There are many alternatives to investing in gold
The first and most common one is investing in physical gold. This means buying bullion or gold coins through companies authorized to engage in this activity. In extreme cases, this is the best option because you will be able to take the coins you have and pay for goods and services in case of need.
The second alternative to investing in gold would be through ETFs. This alternative is very similar to the first in the sense that it is investing in gold. Only this time, you no longer own the billions, but instead, you own a portion of a wallet made up of gold bars.
As we said earlier, gold shouldn’t be a big part of your investment portfolio. And if you haven’t invested any money yet, gold shouldn’t be your first choice.
Where to invest my money – Cryptocurrencies
Just as gold is the original currency, Bitcoin is digital gold. Many people claim that blockchain technology and cryptocurrencies, in general, will be part of the payment systems we will use in the future.
There is a lot of speculation and a lot of uncertainty about cryptocurrencies. Nobody knows if Bitcoin will ever be the godfather of cryptocurrencies. There is also a real possibility to discover a better, more efficient technology.
Cryptocurrencies are not a financial asset to depend on to become a millionaire or to fund your lifestyle when you retire. It is a new financial asset. There are millions of people who have built their fortunes by investing in companies and real estate. But there are still no people living exclusively on cryptocurrencies.
However, cryptocurrencies are the financial tool in which you want to invest some money because there is a lot of potentials, but at the same time, you must be aware that you can lose everything that you invested.
As with gold, digital currencies should not be your first and only investment. First, focus on accumulating assets that have proven valuable over time and can bring you ineffective income, such as stocks and commodities. Only then can you consider adding some cryptocurrency to your wallet.