Have you ever encountered a financial adviser or mentor who’d always recommend investing? They won’t only suggest real estate, but also, different financial assets as well. According to Investopedia, a financial asset is a ‘liquid asset that gets its value from a contractual right or ownership claim.’
Stocks, mutual funds, bonds, bank deposits, and cash are some examples of financial assets. When we say ‘liquid asset,’ we refer to assets that aren’t necessarily tangible. We can look at it as assets that come with risk and their value depends on the market trade.
If you know or have encountered a financial adviser, they probably suggested you invest in real estate or stocks. With all the available options for investment, it’s quite hard to gauge which one would work best for you. After all, investing is a big risk. If you invest your money, you should be willing to accept that the amount you invested may or may not come back again. casino siteleri
Now, where should I invest?
The last 2 pandemic years have brought drastic changes in the trade market. Since a lot of people have been hit by the pandemic, businesses are forced to shut down. With that, people who have invested in stocks have also been affected. People who own real estate find it hard to sell their properties.
Now that the economy slowly sees the light of day, 2022 could be a good year to start investing again. Of course, right now, we still can’t tell if the world will finally go back to normal. But, what we can do now is to look at past years and analyse how some financial assets could benefit us.
To start, here are 2 financial assets to consider in 2022.
1st: Insurance
One of the most evident things that the pandemic has shown us is that our health is critical. Unfortunately, not a lot of people value their health enough to look after it and take care of themselves. The pandemic has shown us that a lot of families rely on one of their members for a living. If you’re a breadwinner and something happens to you, what would then happen to your family?
People look at insurance in 2 ways. First, they think it’s a waste of money to invest in something that you’re not sure whether you’ll benefit from or not. The second is that people view it as a financial fallback once a disaster happens. Whether it is for business insurance or life insurance, people’s point of view is divided between these two.
If you’re someone who thinks that insurance is a waste of money, consider this scenario. Let’s say, you are single, in your 20s, and do not have any dependents to think about. But, your only source of income is your job. What happens if you suddenly get sick and need to be hospitalised?
Maybe your savings can cover your costs. But, what happens if you need more money to cover your bills? In this case, if you have health insurance that you started in your early 20s, it can help you pay your bills. Of course, not all health insurance policies have the same terms. Each has a specific condition that you should meet before you get to claim your payout or use your benefits.
How to get started?
Here’s the thing. Not everyone is well-versed in insurance. It is an industry that is constantly changing. Every year, its terms and conditions may change. It can be hard to familiarise all of the necessary details when you know nothing about them.
If you ask, ‘then how will I get started?’ First, inquire about an insurance broker. Insurance brokers are insurance professionals. They represent clients in their insurance application process. Aside from that, they are the best people to talk to when you know nothing about insurance.
Whether you’re considering life, health, car, or business insurance, talking to an insurance broker is the best move you can make. With their help, you’ll be able to understand insurance simply. They can give you real-life situations where you can benefit from your plan.
It’s also important to be transparent to an insurance broker about your budget and plans. That way, they can recommend you the right plan that would meet your requirements.
2nd: Stocks
The stock market is indeed a risky hole to get into. Every day, its chart is changing. One minute it’s a green, the next it’s a red. But, successful people who invest in stocks have a tip for us, who are afraid to put our hard-earned money into it.
Their secret is to look at stocks as long-term investments. Just like our dreams, it doesn’t happen overnight. If you’re lucky enough to earn 100% of your invested money in an instant, then you must have been a saint in your past life. But, if we’re to look at stocks based on successful people’s experience, it is a long-term commitment.
They say that if you invest in stocks and look at its chart every single day, you’re only torturing yourself. Well, that’s true. Not only will you be tortured, but the chances of not being able to attend to your needs are high. Surely, stress and anxiety will eat you alive.
Instead, the best way to look at stocks is to see them as a commitment. Even though its return rate is not promised, the chances that you’ll earn are higher than the chances of your loss. See it as a real estate asset. Over time, your money will grow. Trust the process of market trade.
How to get started?
I’ve mentioned earlier that people who invested in stocks experienced a downfall during the pandemic. Surely, even until now, they’re still devastated by their loss. If you ask, ‘if that’s the case, then what’s the point of investing in stocks?’
The answer is: to learn and study the market. The key ingredient is to not just invest your money where everybody is investing theirs. Do your research by looking into industries that are continuously growing. The secret? Go for one that consumers will never stop needing.
Take a look at the pandemic. What is it that people ran into when they got sick? It is hospitals and drug stores that serve as their refuge. But wait, aside from that, aren’t hospitals in demand even though it’s not the pandemic? Every single day, hundreds of people go to the hospital for checkups, consultations, treatments, surgeries, and such.
Before you invest in a certain business or industry, look into their relevance. Don’t just focus on their popularity. Take into account their demand in the long run. That’s the best way to invest your money and to ensure low chances of any loss from occurring.
Written by: Bianca Banda
