Everyone Can Invest, You Too. A beginner's guide to investing

Investing has never been easer in the history of humanity with so many sources and information you can obtain having access to the internet. Also the rise of some tech companies and stock being so vibrant, now with little financial knowledge and business experience you can start from scratch.

What is an investment?

Investing is the act of allocating resources, typically money, with the expectation of generating a return or profit in the future. While there are various investment avenues, such as stocks, bonds, real estate, and mutual funds, the fundamental principle remains the same: putting your money to work for you to achieve long-term growth and financial security.

As my investment journey is pretty fresh, I would like to be simple in this blog to unhesitant the basics and that there are diverse opportunities. The key is to start early, stay consistent with your contributions, and maintain a diversified investment strategy aligned with your financial goals and risk tolerance. Over time, the power of compounding can turn small investments into significant assets for the future.

What you need to do is to define goals, assess your risk readiness, think in long term and increase gradually. Are you investing for retirement, purchasing a home, funding your children's education, or achieving dream by investing in a long term success of a company or finally creating your own product? Understanding first your goals will help you determine your risk tolerance, investment timeframe, and asset allocation strategy. Consider factors such as your age, financial obligations, investment experience, and comfort level with market volatility. One of the reasons why it Is worth it to start earlier, you have room to have a buffer risk tolerance.

Investing can be fun and rewarding for a variety of reasons, making it an enjoyable journey. Before deep diving in where to invest, consider the following reasons why:

Investing provides an opportunity to grow your wealth over time. Watching your investments grow and seeing the impact of compound returns can be exhilarating and motivating. Investing often involves interacting with other investors, financial professionals, and online communities who share similar interests and goals.

Investing requires critical thinking, analysis, and decision-making skills. Researching investment opportunities, analyzing financial data, and evaluating market trends can be intellectually stimulating and satisfying for those who enjoy problem-solving and strategic thinking. Whether you're exploring new investment strategies, studying different asset classes, or uncovering emerging market trends, investing provides a continuous learning experience that keeps you engaged and informed.

Investing can empower you to achieve financial independence and freedom, allowing you to pursue your passions, goals, and dreams with less or without the constraints of financial limitations.

I personally find investing to be a way to also make a positive impact by investing in socially responsible companies that align with your values add meaning and purpose to the experience.

While stocks are indeed one of the first investment choices, there's a whole world of investment opportunities beyond equities that offer diverse ways to grow your wealth. Whether you're a seasoned investor or just starting out, here are several examples of things everyone can invest in today:

Index Funds and ETFs

For those looking just to start, index funds and exchange-traded funds (ETFs) offer a convenient option. These funds pool money from multiple investors to invest in a diversified portfolio of stocks or other assets. With index funds, you're essentially investing in the entire market, which can help spread risk and minimize the impact of individual stock fluctuations. There are also funds around a mixed pool of companies like Nvidia, Apple, etc. You can start with even 100$ and increase the amount each three month or once a year. Typically  you are able to receive information prior investment about analytics of the fund over the last five to ten years and be able to estimate your gain. Just remember when we are talking about this type of investment, we always use to think of a long run, five years or more.

Funds pool money from multiple investors to invest in a diversified portfolio of assets, which can include stocks, bonds, real estate, commodities, and more. By spreading investments across a wide range of assets, funds help reduce the risk associated with individual stocks or securities. Diversification is a fundamental principle of investing that can help protect your portfolio from significant losses if one particular investment underperforms. Investing in funds can be also cost-effective compared to purchasing individual securities.

Funds offer investors accessibility to a wide range of asset classes and investment strategies that may otherwise be difficult or costly to access individually. Whether you're interested in investing in international markets, emerging industries, or specialized sectors, there's likely a fund that aligns with your investment objectives.

By incorporating funds into a well-rounded investment strategy tailored to your financial goals and risk tolerance, you can build a diversified portfolio designed to withstand market volatility and achieve long-term wealth. You do not need special education to start investing, only read and set achievable goals.

Real Estate Investment Trusts (REITs)

Real estate can be a lucrative investment, but it often requires significant capital and expertise to get started. REITs actually should provide a way for investors to gain exposure to the real estate market without the hassle of buying and managing properties themselves. These companies own and operate income-generating properties such as office buildings, apartments, and shopping centres, and they distribute a portion of their profits to shareholders in the form of dividends.

Cryptocurrencies

Cryptocurrencies have gained widespread attention in recent years as alternative investment assets. While they can be highly volatile and speculative, some investors view cryptocurrencies as a hedge against traditional financial systems and inflation. proof is the rise of Bitcoin during and after the Covid pandemic You can buy 1/100 of a single bitcoin and have a massive profit if the crypto market continue to shock me as well. This year Bitcoin has hit almost $70 000 per coin. However, those have a ceiling of coines which will be reached somewhere in the next 80 years.

Education and Skills Development

Investing in yourself is perhaps the most valuable investment you can make. By acquiring new knowledge, skills, and certifications, you can enhance your earning potential and expand your career opportunities!

Where to find those obvious choices I have listed above, depends a lot on where you live. My advice number one will be to speak to a friend who has experience and if you are still uncertain, turn to a financial adviser. Typically you can find them in your bank institution and they are there to give you this directions.

When is the best age to start and are women eligible?

Many people consider opening a retirement account as the first resort of investment. I wouldn’t say so. I would work my money out so that I do not need a special retirement account but instead can see my investment accounts growing over years. Of course, if your goal is to invest for retirement, then the stocks you are investing in, should be considered at a very long future from now.

Certainly , if I lived in the U.S., I would have opened a brokerage account first. With a brokerage account, you can invest in everything - stocks, bonds, mutual funds, exchange-traded funds (ETFs), and other securities. There are brokers that offer low fees, robust research tools, and educational resources to support your investment decisions.

The best age to start investing is as early as possible. While there is no one-size-fits-all answer to this question as individual circumstances vary, starting to invest at a younger age offers several advantages. Starting to invest at a young age provides you with a longer time horizon, allowing your investments more time to grow and compound. The power of compounding can significantly increase the value of your investments over time, as your earn returns not only on your initial investment but also on the returns generated by your investments.

Starting to invest early encourages the development of good financial habits and discipline. Regularly contributing to your investment accounts, adhering to a long-term investment, and staying disciplined during market fluctuations can set the foundation for responsible financial behaviour that can benefit you throughout your life.

Ultimately, the best age to start investing is now. Whether you're in your 20s, 30s, 40s or beyond, the key is to start as soon as you can and remain consistent with your investing efforts.

And absolutely, women should invest too, and it's crucial to encourage and empower women to take control of their financial futures. Historically, women have faced obstacles which can contribute to a gender wealth gap. Investing can help women bridge this gap by enabling them to accumulate assets over time. More than that, engaging in investing can create opportunities for women to network, collaborate, and support one another in their financial journeys. By investing wisely, women can achieve greater financial freedom, flexibility, and resilience in the face of life's challenges and opportunities on their own terms.

Elements Rules to start with

In today's dynamic and ever-changing world, securing your financial future has never been more important. Whether you're dreaming of funding your children's education, or achieving your personal aspirations, investing is main step to realizing your financial goals. However, for many individuals, the world of investment can seem daunting and complex. Fear not! I hope this  beginner's guide will help to understand the process, providing you with knowledge and confidence.

Before diving into the world of investment, it's crucial to establish clear and realistic financial goals. Are you saving for retirement, purchasing a home, or planning a dream vacation or in a even greater future? Defining your objectives can help shape your investment strategy and guide your decision-making process along the way.

Another golden advice is diversification. By spreading your investments across few different asset classes and industries, you will reduce the impact of any single investment's performance on your overall portfolio.

Deciding the companies you want to invest in should be a well thought out process, this is why I mentioned diversification. While it is important to not invest out of strong tendency to avoid clouding your decision making, investing in the captains of today and tomorrow who understand how the universe and the world works, is in my view rewarding in unprecedented ways.