If you are thinking about starting your investment journey this year, then look no further. In this article, we will be talking about why you should be investing money in 2022, and some of our top ways to diversify your capital, including options for new investors and seasoned professionals.
Why Should You Invest Your Money?
The year 2022 is all about financial education and understanding your own risk appetite when it comes to your future goals. Investment opportunities and who can actually participate have changed massively over the years. For one, many investment deals now take place online, such as stocks and shares, and some, are fully digital, like Bitcoin and NFTs.
But apart from the actual opportunities changing, so has the target market for the investments. For example, you used to have a certain amount of capital to invest in certain products, but now, the market has become a lot more accessible. This means that many, much younger people are turning to investment as a way to secure their future prospects.
So, why invest? Investment can be a great way to diversify your funds and savings. Through investment, you can put parts of your capital into certain opportunities and hopefully, see a monetary reward for this. It can be a way to secure income, fund your early retirement and meet your financial goals.
It’s worth mentioning that every single investment opportunity comes with a certain degree of risk – something you should definitely consider when looking into where you would like to put your money. So, it’s vital that you fully understand your own income or funds, before investing in anything.
Starting Your Investment Journey In 2022
1. Dividend Stock Funds
Ever thought about investing in the stock market? Well, dividend stock funds are another way to do so. In short, dividends are portions of a company’s profit, which can be paid out to any of its shareholders. Typically, this is on a quarterly basis, but you will need to check the fine print when looking into this investment.
So, how can you diversify your income by doing this? Well, with a dividend stock, not only can you gain on your investment through the long-term market appreciation, but you can also make money earlier than that.
Whilst this investment opportunity comes with a higher risk and is typically suited for advanced investors, you can always do your research into them or, you can buy a group of them in a stock fund to overall, reduce your risk.
2. Savings Or Investment Apps
For all the beginner investors who are looking to get started in 2022, why not try a savings app? Now, the world of investment has a bad reputation for being difficult and frankly, daunting for any new investor to enter. However, with savings or investment apps making headlines in 2022, investment has never been so easy. Right now, there are currently apps that, when you spend money, take any access and invest it for you. Simple, right? For example, if you are doing your weekly food shopping and your total comes to £15.95p, then the app will take that extra 5p or however much it is to round up to the next pound and invest it into a variety of companies, present on the app.
This method isn’t for everyone, but it is a great way to passively invest. For some people, this may be a little too intrusive, and may prefer a certain level of control over what they are investing in. However, in 2022, if you are looking to get started, this could be a great way forward.
3. Equity Crowdfunding
We’ve had one for more experienced investors and one for new investors, but how about an option where everyone can get involved? Equity crowdfunding is where a property developer or landlord can experience a mutually beneficial relationship with investors. They will put forward projects, whether that be commercial housing or residential builds, and then the crowd of investors will fund them! Once you put your money in, you will have a shareholding in the project, and once built, you will receive a possible best return on your investment.
Every crowdfunding platform is different, however, there are some currently out there which allow you to invest with as little as £100! Typically, you will have to go through a vetting process and take a test that will grant you access to view their current products and allow you to begin your investment journey with them. Whilst, like all investments, there is a level of risk involved, this could be a great avenue if you are looking to get into investing in equity.