Investing: Where to Put Your Money?

People always say that you need to invest your money to build wealth, but they never tell you how! Well, I’m here to finally let you in on that secret that no one told us.

1.      High-yield savings accounts

A high-yield savings account falls under short-term investment plans. It pays you interest on your savings on a regular basis. Most banks use compound interest for this type of saving account. The best thing about it is that it’s risk-free, you can access your money at any time, and you gain money a bit faster than other methods.

2.      Treasury bills

This is considered the safest option when it comes to investments. Why are they risk-free? They’re backed by the government, so you’re guaranteed to not lose money.  But does safe mean better? Not always, low risk means low reward and vice versa. So, one of the downsides to investing in T-Bills is that you might miss out on a bigger fish. There’s also the case of rising inflation. With the higher rate of inflation, your returns lose their value.

3.      Exchange-traded funds (ETFs)

ETFs are index funds that are listed and traded on stock exchanges like shares. With ETFs, investors have a way to put their money together in a fund that invests in stocks, bonds, or other assets while also receiving a share of the investment pool. There are many benefits to investing in EFTs, they have lower management fees, you can view ETFs prices and trade ETFs anytime during trading hours, and it’s more flexible which means that it allows you to have a diversified portfolio of stocks rather than individual stocks.

4.     Saving Certificates

I think everyone is familiar with this one. It’s another type of low-risk, low-reward kind of investment. But, unlike other investments like a high-yield savings account, you don’t get access to your money whenever you want. You need to stick to the certificate timeline. Accessing the money before its time would only cost you. So, really this seemingly effortless investment is definitely not for those with commitment issues.

5.      Tangible assets

Well, if you’re sick of the low-risk, low-reward investments and looking for the big guns, well, here they come. Tangible assets such as gold, real estate, and land to name a few.

First of all, if you’re in your early 20s or a millennial, it might be a bit hard to acquire some of these assets, especially with the current state of the EGP. However, if you already own some of these assets, you know you’re in luck. An essential aspect of tangible assets is timing.

Buying them at a lower price and then selling them at a higher price when the economy shifts. They’re considered a more stable investment due to consistent underlying use. I mean, everyone will need a home one day! If you’re lucky, their value could increase with time. But they also have cons. One is that they may be subject to physical damage. Or they may become outdated if better tangible assets are introduced.

6. Thndr

What is that you ask? Thndr is an Egyptian investment mobile application (and no, this is not an AD!) They make investments easy. Basically, you just sign-up and based on your chosen level of risk, you can start investing with little as EGP 10. Want to try out investing in stocks, or dipping your toes into IPOs? Well, go for it!

These are just some of the investment options to consider, whether you’re just beginning or just lost.

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