5 Investment Ideas for Beginners in 2018

Investment Tips for Beginners

Investment Tips for Beginners

The first quarter of the year 2018 is almost over, and you have some extra cash to invest. Perhaps you got a bonus or a raise, and now it’s lying stagnant in your bank account. Either way, if you want to grow your money, you need to invest smartly.

If this is your first time investing, then you need to understand first what investing’s all about.

What is an Investment?

For renowned investor Warren Buffet, investing is laying out cash to get more in the future. An investment is similar to taking a gamble. It’s more about making your cash work smarter, not harder — for you.

    • Investing is about setting priorities for your money.


It’s easy to spend money and get immediate gratification. But in investing, you focus on your financial future instead of your current desires.

  • Investing is a method to set aside money for the future.

While you’re busy with life, your investment will work for you. By investing in the right vehicles, you can reap rewards in the future.

But how do you make a good investment when you don’t know where to start? The goal of making an investment is to put your cash to work in the hopes of growing it over time.

To do that, you need to know the best investments you can partake of to really grow your cash.

1. Invest in Yourself

If you come to think of it, your “self” is your biggest asset. It doesn’t have to be expensive. You can start by reading a lot of blogs on finance and leadership. By investing in knowledge, you’ll make good decisions for effective wealth management.

Invest in your career. Before you can make good investment decisions, you need to have cash to invest. Better yourself, go to work and do your job well because it is what actually pays the bills.

With the experience, skills, and contacts you reap through your career, you can build a foundation to better your position and improve your financial standing.

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2. Stock Market

Some people think that it’s crazy to jump in on stocks. But the truth is, you don’t have to pour every extra cash you have into it. The smartest move is to initially invest small amounts of money.

How does the stock market work?

A stock market is where sellers and buyers meet to sell shares. Shares are small parts of a company found on an exchange. In return for the money you invest in stocks, a business will offer you a share of its future.

Essentially, you’ll own a part of that company and become a shareholder. You can also trade with anyone the small share of the company you bought in stocks.

3. Bonds

When you invest in bonds, you’re lending money for a certain time to the issuer. And in exchange, the borrower will promise to pay you an interest each year. Once the loan is due, the borrower will also return the principal amount at maturity or at call.

Below are two ways by which you can earn money by investing in bonds.

  • Buy bonds at a certain amount then sell them at a price higher than your initial payment.
  • Hold bonds until maturity and collect regular payments on interests.

4. Real Estate

Investing in real estate involves the buying, ownership and management of a property for profit. Below are top reasons why property is a good investment.

  • It provides better returns than stocks without as much instability.
  • Real estate has substantial asset value.
  • Real estate value increases over time.
  • Investing in real estate comes with many tax benefits.

5. Invest in your business

2018 is the year to start a business (if you’re an aspiring entrepreneur) or to take more serious moves to grow your venture (if you already have a business). It’s a good year for business building because newbies now have access to more resources that will provide them the support and know-how they need every step of the way.

Some of the most helpful business-boosting resources include:

  • Online job marketplaces that allow you to tap top global talent who will add value to your team and free you from mundane tasks.
  • The continued rise of angel investors and organizations that can connect you to funding sources to help you find the capital you need to grow.
  • New technologies and tools such as cloud storage, remote working systems and real-time data and communication platforms so you can attend to your business even while on the go.

When doing business in 2018, building a solid relationship with a trusted bank is crucial to achieving success. Business banking services such as receivables finance solutions that are essential for you to enjoy healthy cash flow, improve your working capital and basically be more confident in navigating global trade and finance.

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Whatever investment option you choose, remember not to put all your eggs in one basket. Diversify your investments to lower your exposure to risks. If you want greater returns on your investments, you have to be able to take the opportunity when you can, while being backed up by a solid risk management strategy.

Still unsure? Consult an investment or financial advisor to help you get started.

About Sashi 547 Articles
Sashi Singh is content contributor and editor at IP. She has an amazing experience in content marketing from last many years. Read her contribution and leave comment.


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