Have a nest egg tucked away for a rainy day? If the answer’s yes, then you might be interested in becoming an investor.
Investing can be as simple or complex as you want. Before you start, you should know a few key things that will help you ease your way into how investing works.
Investing isn’t just about buying shares of companies. It’s also about taking risks with money that could grow over time into something more valuable.
Let’s explore this: investing for beginners.
Table of Contents:
What is Investing?
Investing is when you use money that you don’t need (i.e. savings) to generate income for yourself in the form of interest and/or dividends. Investing can be done in stocks, real estate, and other assets. There are many advantages to investing including generating income, diversifying your portfolio, and reducing your risk of outliving your money.
Before you start your investigation into this sector, you should know some key things that will help ease your way into this exciting and lucrative field.
This guide will take you through a speedy breakdown of investing for beginners. This won’t be a replacement for proper awareness. Overall, you need to decide whether to be a producer or to try to earn by passively seculating - here is an overview:
- Investing can be a great way for you to make money over time.
- It looks different according to your approach: you can invest in a homestead and chickens, or buying stocks or real estate.
- However, it’s important to remember that investing is a lot more than just buying shares of different companies.
- It’s also a lot more than just sitting on the money you have saved up.
Section 1: Buying Things that Innately Have Value (eg. Commodities & Skills)
Investing in Yourself Professionally
Whether you’re a musician or a lawyer, your professional success is generally cpaped to the degree that you invest in yourself and your talents. Over a long and consistent period, this includes investing time and money into:
- ⭐ your skills
- ⭐ mentors.
- ⭐ self-reflection & awareness.
As an individual, you are your own greatest asset. This is especially true when it comes to investing in yourself professionally in order to advance your career.
Whether you’re hoping to land a promotion or just want to build a strong resume for future job applications, there are ways that investing in yourself can help. As with most financial investments, there are risks and rewards associated with investing in your career. The trick is knowing which personal investment opportunities will give you the biggest return on your time and money.
Community
Business folk call this ‘networking’ but the better way of approaching this investment is to value community-building, with family being the highest level of this. There are many benefits to having meaningful social connections.
Professional Development
Investing in your professional development is probably the most important investment you can make in your career. With just a little time and money, you can learn new skills that will help you stand out from the crowd when applying for jobs. You don’t have to be a master in one specific field to find a place in the modern workforce. With the right skills, you can land almost any job you want.
Live Classes and Seminars
There are many experts in various fields that offer online courses, live seminars and webinars. Professional organisations also regularly host live events. Some of these events are free, and others can be reasonably priced. You can learn a lot and make connections at these events. You can also buy recordings of some seminars and webinars.
If you’re interested in a particular industry or type of job, a seminar or webinar can be a great way to learn more. Some seminars might only last a day while others last a weekend or even a whole week. Sometimes these events are held in hotel ballrooms, while others happen in convention centres.
Coaching & Mentoring ⚾
Coaching and mentoring can be helpful for individuals who need extra guidance or direction when it comes to reaching certain goals. Some coaching and mentoring programs are general, and others are more industry specific. Depending on the type of coaching or mentoring that interests you, you can find a range of prices. Some coaching and mentoring programs charge by the hour, while others charge per month or per year. Some coaching and mentoring programs charge one flat fee.
Bottom Line
No one will ever hire you because they feel sorry for you. They will hire you because they believe that your skill-set (including storytelling and humour) and experience are what’s needed in their company - this goes for professional and social circles.
Making a Homestead
As the recession hits the UK, there is no better time to think of investment in commodity terms rather than as a form of financial speculation. In this way, homesteading is more than a hobby; it’s a way of life.
If you’re interested in taking up homesteading as a new lifestyle, there are many ways to get started with little upfront cost or risk, while still having the potential to create a profitable venture in the future.
Whether you have 10 acres or just a small backyard, homesteading gives you the opportunity to branch out and grow your own food, even if you don’t have the space or resources for traditional agriculture.
Homesteading is about more than just getting back to nature; it’s about learning new skills and becoming self-sufficient. If you feel like you’re ready to take on this new challenge, here is an article on how to start your own homestead from scratch
Research your options
There are many different ways to get started in homesteading. The most obvious way is to actually own a homestead with a couple of acres of land. However, if you don't already own land, then that can be an expensive and difficult route to take. Another option is to start a garden in your backyard. While it's not quite the same as having your own homestead, you can still grow a lot of your own food, and it's much easier to get started. You can also create a mini homestead in your backyard by building a small farm or garden shed, along with a small herb and vegetable garden around it.
Grow your own food
One of the most essential parts of homesteading is growing your own food. It is not only fun and rewarding, but it is also a great way to save money and get healthier by eating organic produce. When starting a homestead from scratch, one of the easiest and least expensive ways to start growing your own food is by planting herbs and vegetables in a small raised bed garden using organic soil. You can choose from a wide variety of herbs and vegetables that grow well in a small garden, such as lettuce, strawberries, tomatoes, and herbs like basil, oregano, and parsley.
If you have a small backyard or limited space, you can also build a raised bed garden inside your home by using a large wooden or plastic storage crate or wooden pallet. You can line the bottom of the crate or pallet with cardboard or newspaper to make it easier to clean. A raised bed garden is a great way to start growing your own healthy and organic produce, no matter where you live or how much space you have.
Build a chicken coop and grow your own eggs
One of the most popular ways to start your homestead from scratch is by raising chickens and growing your own eggs. Chickens are easy to care for and can be kept in a small coop in your backyard, taking up very little space. A small chicken coop doesn’t have to be very big, but it needs to provide your chickens with protection from the elements and predators.
If you have a small backyard, you can also build a mobile chicken coop that will allow your chickens to roam freely throughout your property. You can grow your own fertilised eggs in a small garden or indoor incubator, or you can also let your chickens roam freely in your backyard and gather their own eggs in a nesting box. Raising chickens can be a great way to start your homestead and grow your own food as long as you have enough space and are willing to feed them and clean their coop regularly.
Build a small farm or garden shed
Another great way to start homesteading is by building a small farm or garden shed. This can be as simple as building a small wooden shed or even a large wooden crate. The best way to start is by building a small garden around the edges of your shed or crate, as this will allow you to grow more herbs and vegetables in a small space. You can also build a mini greenhouse or a cold frame around the outside of your garden shed to extend the growing season. A cold frame is a mini greenhouse that is built using wood, straw, or other insulation to help protect your plants from cold weather. It is a great way to extend your growing season and help you grow more food, even in cold climates.
Create a small herb and vegetable garden
Whether you have a small farm or garden shed or a mini garden in your backyard, you can also create a small herb and vegetable garden next to it. A small herb and vegetable garden is a great way to start homesteading and growing your own food, even if you don't have a lot of space. You can create a small herb and vegetable garden by digging up a portion of your backyard or balcony, or you can start a garden in a wooden crate or wooden pallet.
If you have very little space, you can build a vertical garden on top of your wooden crate or wooden pallet by using a few wooden boards and nails to create a tiered garden, or you can also create a raised garden bed on top of the wooden crate or pallet. A vertical or raised garden is a great way to start growing your own herbs and vegetables in a small garden even if you don't have much space.
Add a couple of beehives
Keeping bees is an excellent way to start homesteading by growing your own food and helping the environment at the same time. Whether you have a large garden or just a small garden in your backyard, you can add a couple of beehives to it. You can also acquire a small piece of land and build a beehive there.
Beekeeping is easier than you might think, but you do need some knowledge about it so that you can keep your bees healthy and away from danger. There are many online resources where you can learn the basics of keeping bees, and there are also many online communities where you can meet other beekeepers.
Real estate
Typically, people think of real estate as a form of passive income is the ideal way for anyone looking to generate some cash without having to spend any time actually working for it. In this way, real estate investing is a great passive income niche for many reasons, not the least of which being how accessible it can be.
However, you should think of it as a commodity that lasts: you can live in your home and even build a multi-generational family. The concept of buying properties and reselling them is called “flipping” because you are essentially selling one property and then quickly buying another in order to make your money back again as quickly as possible.
But this is not the focus of this approach. Real estate is one of the oldest forms of investing. It can be a great way to secure your cash into something that has innate value. For some, real estate can be a great way to make a profit. You can buy investment property in a number of ways. You can buy property with your own money and rent it out.
Some people choose to buy property with a loan and then hold it for a long period of time until it appreciates. But that puts you into debt. If this is something you are interested in, please continue reading.
What is Passive Income?
Real-estate investments are a great way to generate passive income as you buy properties that you either hold for long-term or flip for a quick profit. In order to make this type of passive income work, you will want to find a way to both buy and hold properties that you can resell when it’s time to cash out. You can buy properties at all levels of the real estate chain. Whether you are buying a single-family house, a condo, an apartment building, or commercial property, you will want to make sure the investment is profitable.
Finding Properties
Of course, real-estate investing is only as good as the properties you choose to invest in. This means you will need to first identify properties that you would like to purchase as an investment. In order to do this, you will want to look at the different levels of the real estate chain you are interested in investing in. For example, if you are interested in flipping properties, then you will want to find out what is the cheapest level of the chain to buy. If you are interested in investing in a particular type of real-estate, you will also want to look at what types of properties are available in that specific market. For example, investors interested in condos will want to find out what the most popular areas are in which to buy property.
Finding Agents
Another way to find properties you want to purchase as investments is to find a real-estate agent that can help you find properties to buy. Real estate agents can be great resources for finding properties for purchase as an investment. Many real-estate agents will have access to deals that are not posted online and are simply not accessible to the general public. Real estate agents can also be a great resource for flipping properties. Real estate agents often have many deals that they simply do not want to handle themselves, so they will usually look to sell them to a third party. This can be a great way to make money flipping properties as an investment.
Finding Private Deals
Another option for finding properties you would like to purchase as an investment is to look for deals that are not posted online. This means that you will have to do some digging to find these deals yourself. One way to do this is to use a real-estate resource like Zillow to look for deals that are not posted online. However, you can also simply look online for deals that are not posted online. This will typically be deals that are private and not posted online, but are not posted because the seller does not want to move the listing online.
Section 2: Speculating on the Markets and Gambling
Types of Financial Investments
☑️ Stocks - Stocks are shares of companies that trade on exchanges like the New York Stock Exchange. They represent ownership in a company and can be profitable or unprofitable.
☑️ Bonds - Bonds are debt securities that provide interest payments and are backed by governments or other financial institutions.
☑️ Real Estate - Real estate is an investment in properties, including real estate, commercial property, and residential property.
☑️ Commodities - “Commodities” (in the futures speculation sense) are raw materials that serve a wide variety of functions, from fueling our devices to creating building materials.
☑️ Cryptocurrencies - Cryptocurrencies are digital assets that use cryptography to secure transactions and control the creation of new coins.
Types of Investors
- Practical salt-of-the-earth investors (creditors) - These are the types we’ve reviewed at the beginning of this article.
- Timing investors - Timing investors are those who invest during a certain time frame like the bull market or the bear market.
- Buy and hold investors - These investors buy shares in a fund or hold a fund like an index fund or a sector fund. - Speculators - Speculators are those who try to profit from market fluctuations. They assume that the price of a stock or a fund will increase or decrease
- Debtors - This is the opposite of a creditor.
How to Trade Stocks online
Trading stocks online is as close to playing the stock market as most people will get. You can buy a selection of stocks and either hold them for a few months or weeks, or you can sell them to make a profit.
In general, the rule of thumb is that you should hold stocks for at least a year before you sell them for a profit. It’s a great way for beginners to get their feet wet and experience the exciting world of investing.
You can trade stocks online with a number of sites that make it easy to buy and sell stocks. You can also get a discount brokerage account where you can buy and hold stocks with a group of funds.
5 Top Exchange Platforms for Trading Stocks Online
There are a number of stock trading sites available. In general, the most popular sites and those that have a large number of users are not necessarily the best sites to use. It’s important to find a site that has a large user base, but is also a site that is easy to use.
Here are some of the most popular sites for trading stocks online and their distinctions:
Interactive Brokers: A good all-around site for beginners. It’s somewhat beginner-friendly, but also has rules and regulations similar to more advanced trading sites.
Robinhood: A site that makes trading easy on the eyes and quick on the fingers. It’s a great site for beginners, but still has advanced features to help those with more experience.
Fidelity: A great site with low fees and a bunch of features for professional investors. Fidelity is popular because it’s been around for a long time and has a large user base.
E*TRACK: A newer site that is backed by accredited investors. It provides a lot of features for a low cost.
Mutual Funds
Mutual funds are open-ended investment funds that allow you to invest in a variety of financial instruments such as stocks, bonds, real estate etc.
You can choose a number of funds based on your investment profile, risk profile and time horizon. There are a number of popular mutual fund schemes like www.schemalive.com, www.icici-direct.com, www.fidelity.com, www.sbi.in, www.stonkexchange.com etc.
There are several online portals where you can find a variety of funds based on your investment profile and risk profile. You can also ask your financial adviser for advice on which funds to invest in.
There are hundreds, if not thousands of funds in the market. So how do you know which fund to invest your money with? You need to look for a few key things. First, you need to find a fund with a good track record.
You can find track records for different funds on various websites like www.marketeer.com, www.investopedia.com, www.morningstar.com, www.fundresearch.com etc. You can also ask your financial adviser to help you find a good fund to invest in.
These websites provide track records for various funds, so if you see a fund listed there, you can be pretty sure that it has a good standing.
Exchange Traded Funds (ETF) 📊
An exchange traded fund is similar to an ordinary stock fund. You purchase shares of a particular ETF and then sell them when you want to cash them in.
The shares are then traded on a stock exchange like the New York Stock Exchange or the Nasdaq. ETFs offer a number of advantages over traditional open-ended funds. They are easily traded, which means fund managers can rely on secondary trading markets to attract funds to buy and sell them, unlike open-ended funds that are subject to more volatility and liquidity risks.
They also provide price transparency, which helps investors make more informed decisions by knowing the price at which shares are traded on a daily basis.
4 Tips for Beginner Investors
- Pick a fund that fits your risk profile - Your investment strategy will depend on your risk profile. If you are looking to earn high returns, you need to invest in high-risk funds like equity funds. And if you are more conservative with your money, you can choose a balanced fund that invests less in equity but also has investment options like bonds and other financial instruments.
- Invest the amount you can afford to lose - Investing the amount you can afford should be your first priority. Take money you can afford to lose, and stick to a strategy that will help you grow your money over time. If you can’t afford to lose money, you can’t afford to invest either. But investing just a small amount regularly will help you build a big fortune over time.
- Look for investments that offer long-term benefits - You can’t afford to invest a large amount in one investment. Instead, you should be looking for investments that offer good returns over a long period of time like bonds and equity funds. When you invest small amounts regularly, you build a big fortune over time. So invest your money wisely, and let it grow over time.
Exchanges
Exchanges are platforms that connect buyers and sellers of investments. These platforms facilitate trading of various currencies and assets. There are a number of popular exchanges like www.binance.com, www.kucoin.com, www.hitbtc.com, www.exchange-x.com etc.
You have to understand the difference between a centralised exchange and a decentralised exchange. A centralised exchange is like a traditional stock exchange. Participants trade shares in the form of stocks and options.
An example of a centralised exchange is www.global-trader.com. A decentralised exchange, on the other hand, is like an open-source software where participants trade cryptocurrencies, tokens and other assets. Examples of decentralised exchanges are www.kraken.com, www.bitfinex.com, www.bittrex.com and www.binance.com.
