My first investment. What should I know before investing?  

A question that has been gaining space in youth’s minds is “How to make my first investment?”. If many years ago investing was for men who were already very rich, today the profile is different. Any person with a little money can achieve amazing things.  

Investing in 2022

The main reason why young people without huge amounts of money are starting investing is that the mentality of the generations has been changing related to money. For instance, while in the 80’s conquering capital was a final life objective, nowadays money means achieving quality of life. With this logic, young people change their jobs very easily because they understand it as a phase of life that will last until they don’t have to work anymore.
Besides, they also look for jobs that contribute to their careers and their own life. Therefore, people are open to new ways of making money in order to achieve the lifestyle they want. One of the paths is starting to invest.
In this context, many people start to research and from the democratization of information provided by the Internet, they discover the benefits of investing and great ways to make money. If you are one of these people looking for the right way to make money, you should keep reading this article.  

Starting my first investment

There are many ways to make your first investment without issues, but to do so it is essential to know some tips. First of all, it is necessary to define what kind of investor fits your style. You can be a passive or an active investor, to make this choice it is crucial to consider your budget, and your risk tolerance, and then you will understand which style fits you best.  

Young stock trader broker stretching hands at the workplace, he first achieved great success on the stock market.

What is the difference between an active and a passive investor?

Both styles have their merits and their particularities. But your lifestyle will give you a preference for one of them.  

Active investing 

Active investing involves doing your own research on assets and building and managing your portfolio. If you want to be an active investor, you will buy and sell individual stocks using an online broker. For you to be an active investor you will need to think about these three things:  

  • Time: Active investing requires extensive research. You will need to find out about investment prospects, perform some basic analysis, and monitor your investments once you have acquired them. 
  • Knowledge: Having all the time in the world will not help you if you do not know how to properly evaluate investments and study companies. Before you invest in stocks, you need to at least be familiar with the basics of stock analysis.  
  • Purpose: Many people simply do not want to spend hours on their finances. And since passive investing has traditionally provided high returns, there is nothing wrong with this strategy. Active investing offers the potential for higher returns, but you must be willing to put in the work to do it right.  

Passive investing

Passive investing, on the other hand, is analogous to running a marathon instead of the 100-meter dash. You will still get decent results over time, and the work is diluted in the course of years. To sum up, passive investing is putting your money to do the hard work for you; mutual fund investing is an example of this method.   

You can also use a hybrid strategy. It is possible, for example, to employ a financial or investment advisor – or use a robo-advisor – to design and execute an investment strategy.  

There are different ways to make money in order to get the way of living you deserved. Find out what way is the best for you! Click To Tweet

In short, you can find the kind of investor you want to be. In case you have decided, but you are now looking for a great opportunity where to invest your money, here there is a digital startup that could be your right fit!