What You Should Invest in if You’re a Beginner

Investing is a great way to grow your wealth and secure your financial future. But where do you begin if you’ve never entered the investing world before? There are so many options out there, and it can be difficult to know where to put your money. You want a sizeable return on your investment, but you don’t want to take on too much risk when you’re just starting out. If you’re a beginner, here is what you should consider investing in.

A Solid Emergency Fund

An emergency fund is cash you set aside for unexpected expenses, like a job loss, medical bills, or car repairs. You’ll want this somewhere very stable, like a savings account, so you can rely on it when you need it most. Having an emergency fund will help keep you from going into debt if something unexpected comes up. Aim to save enough money to cover three to six months of living expenses. It may not be the most exciting investment, but it is one of the most important to start with.

A 401(k) or Roth IRA

If your employer offers a 401(k) plan, sign up and start contributing as much as you can. If your employer doesn’t offer a 401(k) plan, open a Roth IRA. These are both retirement accounts that allow you to invest pre-tax dollars, which means your investment will grow tax-free. It’s a long-term investment, but it’s worth it for the security it offers.

A Diversified Investment Portfolio

As a beginner investor, you’ll want to invest in many different areas to create a fully diversified investment portfolio. This means investing in a variety of different asset classes, like stocks, bonds, and even real estate. Diversifying your investments will help protect your money if one particular investment starts to trend downward.

Investments With More Risk

If you’re looking for a larger return in a shorter amount of time, there are riskier investments that you can make. You may want to start buying individual stocks, which can be a riskier proposition than investing in mutual funds or ETFs (exchange-traded funds). However, it can also offer the potential for higher returns. Many companies even accept cryptocurrency as tender now, giving you another place you can invest if you’re okay with some risk that the market might shift unexpectedly.

Investing can be a great way to grow your wealth and secure your financial future. If you haven’t started yet, but know you want to, consider these investments first, then build up to more as you gain more confidence as an investor.