How to start investing

A smart investment is when you evaluate not guarantees, but the mechanisms themselves that will multiply your money. And also about the fact that you should not buy or sell shares just because others are buying or selling them. Investing has become very affordable. Now it is enough to download the application, conclude an agreement with a broker in two clicks and start buying assets. In this article, we will tell you how much money you need to start, what assets to invest in, and how to change consumer thinking to investment thinking.

What is investing

Investing is the investment of own or borrowed funds with the aim of making a profit. You can invest both in financial instruments, such as securities, and in real estate, industry, and so on. Investment income can be generated in different ways, depending on the chosen strategy.

Experts advise you to start investing only when income begins to exceed expenses. It is not necessary to have any significant savings or wait for them to appear. You can start investing with small amounts. It is also a good idea to acquire a “financial safety cushion” before the start of investments, albeit not material, but in the form of insurance against loss of property, disability or work.

First, it is worth analyzing the current financial situation in order to find reserves for investment: usually, optimization of current expenses allows us to allocate about 10% of income.”

Investments are usually divided into two parts, one is protective, the other is profitable. The protective part is intended to cover unforeseen expenses, such as the loss of a job, a car accident or other unforeseen events, this part of the savings is invested only in liquid assets. If you need to make money fast, you can try TonyBet bookmaker. Here you will find a variety of entertainment for every taste, where you can make good money.

The purpose of investing is to achieve your financial goals, for example:

• to form a financial “airbag”, it can be put on a deposit with the possibility of partial withdrawal;
• earn the necessary amount for serious purchases;
• protect your capital from inflation;
• insure your permanent source of income with additional income from investments;
• increase finances for your children;
• create your own personal pension fund, which in many years will bring passive income.

How to invest

You can invest in different ways. Conventionally, they can be divided into two areas: through intermediaries who will manage your capital, and independently. Which option is better to choose depends on the initial investment, investment goals, and the time you are willing to spend on the process itself.

An option when your assets are managed by specialists:

1. bank deposits as the easiest and most reliable investment option. You transfer your capital to the bank, it uses it and pays a certain percentage for it. Returns are likely to be close to or less than the rate of inflation;
2. mutual investment funds. They can be selected according to the level of expected profitability and the assets that their managers will buy. You cannot find a guaranteed income here, but a lot depends on the selected assets and on the competencies of the management company, and there are also commissions that the manager withholds;
3. trustees. This is one of the easiest ways to invest. You entrust the care of your capital to a professional who forms a strategy in accordance with your tasks. He will buy securities and other assets in your name. There can be no guaranteed income here either, in addition, it is worth considering the commissions of managers.

An option when you yourself will make decisions and make trading operations:

This approach requires both knowledge and time. It will be necessary to independently develop a strategy, select assets, form portfolios and conclude transactions. The easiest way is to invest on the exchange through brokers who act as intermediaries. The site itself, through the listing procedure, selects those issuers and securities that meet certain requirements. Such a platform can add securities to quotation lists – the first and second levels, as well as to the non-quotation list – the third level. The higher it is, the more reliable papers are considered. Risks are also present there, but they are less than on OTC sites.