Investing guide to get you started investing today whatever your budget
You have been introduced to various investment opportunities and alternative ways to make your money work for you, begin your investment journey even with a small amount of capital. Embracing this investment mindset targeting an average annual return of around 10% is a reasonable goal. Although this percentage might not appear substantial initially, the power of compounding over time can significantly amplify your gains.
Starting with a $/€1,000 investment is a great way to dip your toes into alternative investment options and build a diversified portfolio. Here's a suggested breakdown of how to allocate your initial investment.
Stock Trading Investment Account: $/€500 Open an account with Etorro, Swissquote, Robinhood. Make some research with our favourite team at Motley Fool
Option 1: Purchase shares of 5 different companies, investing $/€100 in each.
Option 2: Invest $/€500 in a broad-market ETF like Vanguard VOO or VTI.
P2P Investment Account: $/€250 Open an account with Mintos, Peerberry or Robocash
Option 1: invest $/€250 in a diversified portfolio of P2P loans. Choose loans with different risk levels and durations to spread your risk.
Option 2: Invest with Mintos automated investment, choose from criteria you specify, location, duration type of loan and automatically loans will be purchased for you.
Corporate Bonds Investment Account: $/€250 Open an account with WiseAlpha
Option 1: invest $/€250 in a selection of corporate bonds from different companies. Aim for bonds with solid credit ratings and regular interest payments.
Option 2: invest $/€250 use the platforms smart bond that will diversify for you and return you with a fixed interest rate depending on the timeframe you choose.
Budget 1,000
By following this allocation, you would have exposure to various investment types, including stocks, P2P loans, and corporate bonds.
With a $/€10,000 investment you can really start to see your investments work for you with more diversification and capital in your investments. Here's a suggested breakdown of how to allocate your initial investment:
Stock Trading Investment Account: $/€5000 Open an account with Etorro, Swissquote, Robinhood. Make some research with our favourite team at Motley Fool
Option 1: Purchase shares of up to 10 different companies, investing $/€500 - 1,000 in each
Option 2: Invest $/€5,000 in a broad-market ETF like Vanguard VOO or VTI.
Option 3: Or a mix of both the above
P2P Investment Account: $/€2,500 Open an account with Mintos, Peerberry, Robocash
Option 1: invest $/€2,500 in a diversified portfolio of P2P loans. Choose loans with different risk levels and durations to spread your risk.
Option 2: Invest with Mintos automated investment, choose from criteria you specify, location, duration type of loan and automatically loans will be purchased for you.
Corporate Bonds Investment Account: £/€1500 Open an account with WiseAlpha
Option 1: invest £/€1500 in a selection of corporate bonds from different companies. Aim for bonds with solid credit ratings and regular interest payments.
Option 2: invest £/€1500 use the platforms smart bond that will diversify for you and return you with a fixed interest rate depending on the timeframe you choose.
Gold/Silver $/€1000 Open an account with Bullion Vault, Kitco or ETF GLD
Investing in gold can indeed be a way to provide a solid backing to your portfolio and act as a hedge during economic downturns. Gold is often considered a safe-haven asset, as its value tends to rise during times of economic uncertainty or market volatility.
Budget 10,000
With a $/€50,000 investment you can feel your portfolio working for you, targeting at least $/€5,000 per annum and growing ever year even more with compounding. Here's a suggested breakdown of how to allocate your initial investment:
Stock Trading Investment Account: $/€25,000 Open an account with Etorro, Swissquote, Robinhood. Make some research with our favourite team at Motley Fool
Option 1: Purchase shares of 10- 25 different companies, investing $/€1000- 2,500 in each.
Option 2: Invest $/€25,000 in a broad-market ETF like Vanguard VOO or VTI. Consider adding REIT ETF like VNQ or O to provide some dividend income
Option 3: Or a mix of all the above
Budget 50,000
P2P Investment Account: $/€5,000 Open an account with Mintos, Peerberry, Robocash
Option 1: invest $/€5,000 in a diversified portfolio of P2P loans. Choose loans with different risk levels and durations to spread your risk.
Option 2: Invest with Mintos automated investment, choose from criteria you specify, location, duration type of loan and automatically loans will be purchased for you.
Corporate Bonds Investment Account: £/€5,000 Open an account with WiseAlpha
Option 1: invest £/€1500 in a selection of corporate bonds from different companies. Aim for bonds with solid credit ratings and regular interest payments.
Option 2: invest £/€1500 use the platforms smart bond that will diversify for you and return you with a fixed interest rate depending on the timeframe you choose.
Gold/Silver $/€5,000 Open an account with Bullion Vault, Kitco or ETF GLD
Investing in gold can indeed be a way to provide a solid backing to your portfolio and act as a hedge during economic downturns. Gold is often considered a safe-haven asset, as its value tends to rise during times of economic uncertainty or market volatility.
Alternate options: split $/€5,000 - 10,000 between 2-3 other investments that are of interest to you or allocate more to the investments above. Research what is right for you and open accounts with your choice of options:
Option 1: The fine things – Whisky, Wine or Art investment – A really fun way to invest in something different that has a good history in appreciating in value
Option 2: Properties- Real Estate investment – one of the most reliable investment you can make. Either by purchasing a property yourself and renting out or using a platform to own small share of number of properties hassle free.
Option 3: Royalties – Invest in a song, album or book to start earning royalties
Option 4: Start-ups – own a small piece of the latest product or service, you be part owner of the next Revolut but be aware Start-ups are very high risk
Checklist
Invest Regularly: If possible, make regular contributions to your investment accounts. Even small amounts can add up over time, thanks to the power of compounding.
Stay Informed: Keep yourself informed about financial markets and exploring other investment opportunities. Read articles, watch financial news, and stay up to date with economic trends.
Have Patience: Remember that investing is a long-term journey, avoid making impulsive decisions based on short-term market fluctuations
Remember that investing is a long-term endeavour, and staying informed and disciplined in your investment approach can lead to successful outcomes over time
