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How to invest for beginners: 3 stages of earning passive income

How to invest for beginners: 3 stages of earning passive income
Saving money has become essential because inflation is reaching an all-time high. When you have a household to sustain, you cannot exist just on your corporate pay. You have to bear the expenses of your family and for many people, that can swallow up the majority of their income.
The problem with the guidance on how to invest for beginners is there are many ways of investment that are being constantly introduced in the market. It creates a sort of confusion because people who just want some extra money don’t know which investment opportunity is the best for them.
Cryptocurrency enthusiasts say to invest here because the returns are quick. Real estate brokers say to invest here because a house is the best method to invest for beginners. The commodity you should invest in depends upon how much money you have saved.
Keeping that in mind, we have categorized the saving plan into three stages:
  • First Stage: for beginners who do not have any investment knowledge and have a budgeted amount
  • Second Stage: for beginners who do not have any investment knowledge but have a good investment amount
  • Third Stage: for beginners who have complete knowledge but cannot decide which option is the best for them
Let’s get started on our guide on how to invest for beginners.

First stage on how to invest for beginners - the laymen on a budget

They are the people who have been affected by rising inflation but do not have the time to learn in detail about any investment options. Considering that, deciding much revenue you can set aside for investments should always be your top priority.
Remember that you have to invest this amount every month or after every 3 months, depending on the deal you have done with your investor. Now, if your amount lies under £5,000, that means you have to invest in something relatively small.
Good options exist for laymen on a budget in cryptocurrency, stocks and bonds.

Second stage: affluent laymen

Now the general advice would be the same as above because both of these parties are laymen. Affluent laymen have the option to try their luck at different places like stocks and crypto, but it’s essential to research and become acquainted with the market.
But, you can also hire a broker who will deal with all of the trade for you. Cryptocurrency trade is usually done through online platforms like the Ethereum code and you can trade any kind of cryptocurrency on it.
The most compelling trait of cryptocurrency is that you can earn good amounts of money quickly. If you hire a trustworthy and efficient broker, they will do the job for you and you will earn passive income in no time.
There are also options for long-term trading but most people get into crypto to make quick money so it isn’t a very popularly used method. So, do your research to find a good broker and start investing in crypto right away.

Third stage: the well-learned ones

You are a relative beginner but you have thoroughly learned about ways to invest. However, remember learning about a trade or investment option and doing it in real life can be miles apart. Even if you know everything, this doesn’t mean you will perform perfectly.
This is where “simulation trading” comes in. In this type of trading, you will have all the real-world conditions, the difference will be that this trading won’t be real. It is somewhat like gameplay where you get real-life conditions and learn to survive in them.
You will apply all the strategies and knowledge you have learned and see how well you perform without spending a single penny. This way you can practice all of your strategies and when you think you are ready, you can step into the real world and its challenges.
This strategy is for both those who are under a budget and those who have a lot of money on hand. Because those who have a lot often choose trading stocks or cryptocurrency and that is where they lose fortunes and their will to trade or make any investments. So, better safe than sorry and try your luck on simulation trading first before diving into the real world.

Final words

In sum, making any type of investment depends upon how much money you have. If you have ample funds, then you can take risks and trials, but if you don’t you will have to research, test and learn before you go for the big bucks!
In the beginning, everything will seem intimidating. But as time will pass, you will learn more from your experience and one day will reach the stage where you will teach others how to earn their first passive income.
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