Investments are just small pieces of your money that you put aside for the future. You can use them to make more money so it will grow and turn into a large amount in time, or you can spend it now on things such as a house, car, etc.
There are many types of investments with different benefits depending on what they offer – from safety to high-risk opportunities.
Investing is an excellent way to create wealth over time if done right while also staying relatively safe. However, ensure that you do your research and get some Monty Cerf professional advice before making any decisions!
To make things easier for beginners:
Here Is a Break Down Of The Pro’s And Con’s On Some Investment Types
Cash – Pro
This is one type of investment where investing means literally putting money under the mattress or in some other safe place until retirement day when you withdraw all the accumulated funds at once (or gradually). This type makes up about 40% of global stock markets but has minimal profit potential because it’s not invested or circulated enough.
Cash – Con
Cash can’t generate more money unless an investor invests that cash elsewhere into other types and then withdraws from those after they’ve grown bigger over the years.
Stocks – Pro
This type of investment includes shares in companies like Apple, Coca-Cola, and Nike, which can be sold at any time for a modest profit when the company does well (and also to some degree when it doesn’t). There is more risk involved than with cash because there are no guarantees that the share price will remain stable, but you’ll have an opportunity for higher returns as opposed to having your money sit under the mattress all its life.
Stocks – Con
Stocks can be profitable over the long term as opposed to cash, but there’s no guarantee that such growth will be steady or even happen at all. It relies on your ability to predict what will do well in the future. Companies like Apple have experienced dips before and recovered later; this is not something everyone has time for every day.
Bonds – Pro
These are loans which governments, companies, or other organizations often issue. When they’re purchased, a bond is like giving that company or government your money with the understanding that you’ll be paid back at some point in the future and get interest for holding onto it for so long while others can borrow instead. Bonds don’t have much risk because there’s not as high a chance to lose money within this type (besides inflation).
Bonds – Con
They are liked by those who don’t want too much risk because they’re pretty reliable compared to other types, which might cost you more if things go poorly (or provide high returns without any investment).
Real Estate – Pro
One way to invest is by buying property such as houses and buildings, etc., either on your own or from an investor who wants to sell something already owned. People know real estate is a steady and reliable (albeit not high-risk) investment because of the sense of stability it provides.
Real Estate – Con
Real estate provides stability and security, while commodities have been seen as somewhat exotic investments due to their exclusivity amongst many cultures across the world; however, these also come with the lowest returns.
Jessi is a working mom to two living in Central Florida. She has a Master’s Degree in Legal Studies but decided to make her career in social media marketing and content writing. When she isn’t cooking up something new in the kitchen, she is traveling with her family and looking for new adventures!