Investing is a traditional way to increase your income. Beginners prefer safe investments.
Traditionally, these are all kinds of savings accounts. Now it has become irrelevant: the difficult situation in the world has led to lower rates and inflation. The Western world is also at a loss: requests like “Where should I invest in 2022?”, “Wo soll man 2022 Geld anlegen?”, “Gdzie inwestować w 2022 roku” are very popular. So where to invest in 2022 and how to do it safely?
In short, safe investments are low-risk investments. That is, the chance that you will lose money is small. They are great for beginners. This approach also has a disadvantage: the return on investment is low.
Security and profitability are linked. The safer the investment, the less income from them. And vice versa: risky moves bring more profit. The third component in this system is liquidity. It turns out a kind of triangle. There is no perfect investment – you constantly have to balance, looking for more acceptable options.
Benefits of a safe investment:
- security itself;
- stable income;
- suitable for beginners;
- many options;
- low volatility;
- insurance system.
- low rates of accumulation;
- low profitability;
- little flexibility;
- small but existing risk;
- long term investment
- Set a goal.
- Plan your budget. You need to know exactly how much you are getting and what you are spending on.
- Cut costs. Of course, not at the expense of quality of life.
- Decide how much you are willing to invest. On average, 5-20% of the budget is invested.
- Decide on an investment period. Investments are short-term (up to a year), medium-term (one-six years) and long-term (from six years).
- Select suitable investment properties.
- Decide on a portfolio. There are three basic ones: return-oriented (part of the funds are on demand, the rest is invested in high-yield enterprises), balanced (part of the funds are invested in real estate) and conservative (only safe investments).
Where to invest
- Bonds. The risk of insolvency of the company, bank or state is low, income too.
- Funds. More profitable option with low risks. Funds react quite clearly to market changes, so the income will be higher.
- ETF, they are also passive funds. Offer easier asset management.
- Real estate. A slightly less reliable option is to keep an eye on the market. Investments in real estate become more profitable if the purchased housing is rented out.
- Precious metals. Their value will only grow – stocks are limited, and more and more people. But the initial investment is great.
- P2P loans. If you approach the choice of a partner carefully, you can make a good profit.