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Alright, you have the capital to start investing. You have just started and wonder if it is the right time to invest.

When you ask financial experts about the right time to start investing, the answer will be dynamic. In most cases, it has never been wrong to invest at any time.

For beginners, you will want to focus on low-cost, low-risk, and beginner-friendly types of investments. There is nothing wrong with that.

The standard savings account, for instance, gives you very little annual return. That’s why it is often not counted as an investment.

And then, people have tied beginner investments to the stock market. But in reality, there are different types of investments that you can consider right now. You will need to know about them first so that you know what type of investment works for you.


Stocks are pretty much easy to understand. When you purchase stock, you are getting the shares of the company. In common practice, the stocks you get are from a public company. It is rare for beginners to invest in a private company’s stock because this kind of stock is only limited to the inner circles of the company.

Public companies, on the other hand, have listed their shares in public. You can purchase stocks through trustworthy brokerages. You could purchase the stock when the price is low.

There are two main ways to earn from stock: by receiving dividend payments from the profits, or by selling the stocks when the price goes up.


Bonds are used by government bodies or other companies to finance some projects.

In a nutshell, it is the government’s way of funding the public.

The government will then pay you back with interest.

The interest rate and time of payment are decided before you proceed with purchasing the bonds.

It is categorized as a low-risk investment. Bonds have lower gains compared to other investments, such as real estate. It would take years or decades to get a big gain from bonds.

Cash equivalents

Cash equivalents are shorter than bonds. The Cash Equivalents, as the name suggests, follow particular assets, including securities, commercial paper, Treasury bills, certificates of deposits, and so on.

These asset classes are on a shorter-term basis. Not to mention that these tools are used by the government and companies who want to borrow funds on a short-term basis. The return is fixed at short maturity dates.

Cash Equivalents can be a great option for short-time investors.


Gold has been an investment for many folks for years. You might imagine the physical item of gold. But investors can purchase gold coins and bars in different forms now. For instance, there are other gold investments, such as ETFs, certificates, futures contracts, and so on. Nowadays, you don’t have to store physical assets. You can purchase digital gold if you want to.


If you want to have a steady monthly income at your retirement age, then an annuity could be a great option for you. It is a way to save up for your retirement. You will allocate your savings into your annuity account over time until you reach retirement age. But make sure you research this investment first before proceeding.

Every investment has its own tradeoffs. Therefore, you don’t want to use up all of your money on only one single investment. Then invest, consider spreading your risks across multiple investment programs.


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