What should you invest in?

When inflation is rising, saving cash as bills or keeping money in a bank or PayPal account means a loss. So what should you choose to not only avoid losing, but also to make a profit? You can find the answer in this article. Remember! This text is not investment advice and should not be treated as such. Any investment is related with risk, it is your own money and decisions related to its placement should be completely independent. Ok, the formalities and introduction are over, so it's time to move on to specifics.


Okay, we already know that investing is a good idea. But why do you want to invest? Are you thinking about your money in terms of a month, a year or a decade? There's an old formula that says it's not worth investing money you plan to spend in less than a year. Any investment involves the risk of loss, and sometimes you may end up being at a constant loss for 12 months, and have to wait several years to see the value of your assets increase.

Risk and its tolerance

Young drivers do not cause many accidents at the beginning. A few years after they earn their licenses, they are the main perpetrators. Whether it's through a false sense of being good, or a lack of accidents before, they become more and more risk-tolerant. But over time, when they see enough and hear enough stories about accidents, they try to avoid risks and drive more safely. It's the same with investing-when an 18-year-old decides to invest, say, $500 in stocks or cryptocurrencies, he'll be primarily interested in a big profit and a quick return, without considering whether it's safe. A 40-year-old will take risks in more legitimate cases, while a statistical retiree will not want to take risks at all. Risk tolerance is extremely important, so when choosing your investments, determine how much you can endure.


If you are saving for retirement, you are most likely doing it for many years. Your retirement savings are a warranty for you, and you would probably feel extremely upset if they were suddenly halved. What's different is if you have a surplus from your income that you have nothing to do with right now. Of course, you don't want that money to disappear, but your approach is a little different. While the vast majority of assets will eventually yield a profit, not everyone is willing to wait long enough.

investing is future

Amount of money

You are probably afraid that you can't afford to invest in the stock market. Nothing could be further from the truth! Although you may need tens of thousands of dollars to create a diversified investment portfolio, you can start investing even with amounts as low as $100, which you can earn together with Paidwork, working in a cafe or getting a school grant. The most important thing is to conscientiously increase the value of your investments and be reasonable. If you take care of them, wealth will naturally come on its own. To understand what I mean, read about the Latte Effect. And if you include investments at the budget planning stage, definitely learn what the 50/30/20 rule is all about.


There are many types of bonds, they are issued by companies as well as governments, and can be emitted for a few weeks as well as several decades. We will focus on high-rated bonds, such as Swiss bonds or British bonds. Although they are not very lucrative, because their purpose is to finance fairly dependable structures like countries, so the risk is low, it is definitely better to buy bonds than to keep your money in a bank account! If you plan to spend your savings within a few years, or are very worried about risk, then bonds will definitely be the best choice.


Stocks are nothing more than a certification that the shareholder owns a corresponding part of the entire company, and therefore its profits. A wide variety of stocks are sold on stock exchanges, ranging from giants such as Apple, BMW and Pfizer to shares of local communal water supply companies. Usually, shares of large companies are a safe bet, because their market status is very solid, but it is possible to earn much more on shares of small firms. The decision associated with their selection is also related to your level of risk tolerance.

Metals and commodities

The opportunities for investing in commodities are vast. Soy, oil, silver, gold, copper and cocoa are only part of the commodities that are available to be purchased. Investors don't have to bother with stocking them, because usually, trading is performed through futures contracts. Although commodity prices are volatile, the degree of risk is generally acceptable. As we mentioned earlier, commodities also involve gold, which is well-known for its stability. If this topic interests you, it is necessary to read our article about it.

thinking about investing


ETFs are not an asset class but rather a form of investing in them. In simple terms, it is a form of mutual fund whose managers try to replicate the composition of a particular index. To illustrate, an ETF based on the SP500 index would be a fund that only includes shares of SP500-listed companies in the proportion that they actually exist. ETFs are an excellent choice for investors who own a small capital and are interested in getting profit from the growth of the whole market, not a single company. ETFs are a cheap and fairly safe option, although everything depends on the assets on which they are based.

It's easy to get lost in the investment subject. There are many forms of investment, and the ones mentioned here are only a small part of the wide range of possibilities. If you're not sure about something, it's mandatory to expand your knowledge so you don't lose your savings right from the beginning. Be coherent, follow the latest publications on this blog and strive for wealth!


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