Looking to Invest? Here Are the Most Beginner Friendly Options

Investing is a process that has become overwhelmingly popular over the years. If you’re interested in dipping your toes into the world of investment, then you’ve come to the right place. These days, anyone can invest their money and walk away with a decent return, with due diligence. However, it’s important to choose something that’s easy to learn. There are some investments that are very complex to get involved in. In this article, we’ve compiled the most beginner friendly investment options for you try.

The Stock Market

As you’ve researched and most likely read other investment articles, you may have noticed that the stock market is the first on each list. This is because it’s one of the easiest and most profitable forms of investing ventures to date. The stock market is basically when you put your money toward shares from a company, hold, and then eventually sell them when the perfect opportunity arises. In this method, it’s all about buying and selling; it’s essentially a form of trading.

You need to be very attentive when analyzing the market. The stocks you buy are constantly increasing and decreasing in value, so patience is key. That said, you might be wondering how this is beginner friendly. Aside from being straightforward, it also introduces newcomers to risk. Risk is a term used within the investment world that symbolizes the chance of something going wrong. You’d be surprised how many newcomers overlook this and end up crashing and burning.

When it comes to the stock market, the biggest risk is a stock market crash; an event where stocks across the board drop in value. This can lead to a huge loss, which is why it’s crucial you maintain a watchful eye on the market. If you start noticing the signs of a crash, you’ll have the chance to back out before any kind of damage can be done.

Real Estate

Real estate is an investment that’s only recently surged in popularity. This is because it’s considered to be the safest form of investment. In fact, did you know that many established professionals rank it above the stock market? Real estate is a fantastic addition to anyone’s portfolio, and there’s a multitude of reasons why. Here’s a small list of what you can expect by investing into real estate:

  • Having a predictable cash flow
  • Not having to worry about volatility
  • Taking advantage of numerous tax benefits
  • Amazing ROIs

There are many ways you can get invest into real estate. Many beginners consider the cost of admission is too high and becoming a landlord being tedious work. But there’s a way to avoid the high costs while making real estate a part of your portfolio; it’s known as fractional investments. Rather than owning an entire building, you’ll be the owner of a few parts of it.

Think of it as traditional stock market shares. When you purchase them, you own that part of the company until they’re sold to another investor. In real estate, you could own one to three apartments in a building and make money off the people renting them. It’s a great way to make a decent passive income without all the responsibility. Another way to get involved in real estate is micro flipping. This is when you purchase properties, renovate, and then sell them back on the market quickly. It’s similar to day trading, except the risk can be far lower.

High-Yield Saving Accounts

If you’re looking for something simple, then look no further than high yield saving accounts. High yield saving accounts are near identical to traditional savings accounts; the only difference is that everything you deposit can increase over time. This is because the bank will basically pay you in interest.

The interest rates will depend on the bank you open this account with and how the current market is doing. Some banks may have a rate of two percent while others can have them as high as six percent. It doesn’t matter how much money you deposit as there’s generally no limit, unless stated by the bank itself. You need to be aware that inflation can become a somewhat of an issue and impact how much you earn.

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