Investing As A Newbie – Is It Really Worth It?
As a self-confessed investing newbie, I have no clue where to start; if it’s even worth it, or what to invest in. But with savings at an all-time low, and with a little spare cash, I’m running out of reasons not to at least look into investing!
What Is Investing?
Investing is the act of putting your money into, or purchasing assets that hopefully increase in value over time. This way, when you come to sell them, you can make a profit.
How to Invest?
As a newbie in this field, I have some steps I need to follow to start my investment journey. Step one, research! In order to make my investment worthwhile financially, I need to know a rough idea of how it works; what to invest in, how to invest, how much money I need to get started, and when I can expect to see a return.
If you are still uncertain or reluctant on where to start, use resources that are already available. You could find someone who can make investments on your behalf, like an investments manager. You may end up paying them a cut of your returns, but theoretically you should be making better investments to begin with. Your manager will have a lifetime of experience; although no investment is ever guaranteed, they may make better decisions than you could, at least to begin with.
A third option is simply to use apps on your phone. Apps such as Plum, Moneybox or Nutmeg. These apps are predominately set up to take the hard work away from you, as they do the investing on your behalf. Apps such as Moneybox and Plum start with small amounts, so you can invest literally with your spare change. Moneybox will round up your purchases, so if you spend £3.50 on a coffee, it will round it up to £4.00, and take the 50p to add to your investments. Although it may be small gains, you can get a feel for it and see if it is for you, without having to fork out lots of money you may not be comfortable with.
What to Invest In?
You can invest in almost anything. Cryptocurrency, gold, companies, oil, property. The list is quite literally endless; if it exists, chances are you can invest in it. You could also invest in items; such as collectables or antiques.
Remember most things increase in value over time, so if you are happy to play the long game, why not stock up on some things now, to sell in the long run? Whether it be TV memorabilia, magazines, toys, books or music. Celebrity memorabilia always holds money well, if the celeb is well known enough. Take the Harry Potter First Edition books – currently worth in excess of £40,000. Imagine what they would be worth in another 20 years, or more? These are all books that were likely brought for less than £20 originally.
If you can get hold of original merchandise, these are always worth storing safely. No matter what the item is, chances are there will come a time when it will be worth significantly more than you originally purchased it for.
