I used to think that having a sustainable income was the only thing that mattered in taking care of financial bills. I had savings that I set aside every month in the event of emergencies but, I wasn’t devoted to it. I didn’t keep cash because I wanted to keep it away until a specific time; I kept it for keeping sake. I could even spend it before the month ran out. Either way, I realized that having just savings was not enough but including investments into the picture was crucial for long-term goals and financial returns. See Financial stability.

What are investments?

Investments are physical or monetary assets acquired solely to generate income or appreciation for a specific period. It is another way of generating income apart from usual monthly remunerations. Having multiple sources of income is one way to be financially stable. There are different types of investments which include:

  • Stocks
  • Bonds
  • Mutual funds
  • Index funds
  • Exchange-traded funds (ETFs)
  • Options and so on.

Why should you invest?

  • It serves as another source of income.
  • It helps to grow your wealth.
  • It serves as a backup for emergencies.
  • It is to fund retirement, education, or any other need.

Things to consider before you Invest

  • Knowledge of investment plan: you’ve decided to invest and, you have lots of investment options to choose from. You have to know about each investment to know which is suitable for you at the moment. You will also need to compare the pros and cons of the investments to understand how that suits your goal or objective.
  • Risk tolerance: are you a high-risk or low-risk taker? Investment involves risks but, it’s the ability to handle them effectively that matters. It is pertinent to choose investment options you will be able to handle in terms of risk. High investment funds come with higher risk, higher yields, and vice versa.
  • When do you need the money: you also need to consider when you will need the cash. Are you investing for the long term or short term? You will need to know this so, you know which investment suits your needs.
  • How much are you willing to invest: the amount of money you plan to invest will also determine the kind of investments you will choose. It is crucial to note that you should invest spare cash and not money you need immediately.

Good investment options for beginners

  • Savings accounts with high yields: saving is a form of investment. It involves putting money in a bank account that would attract interest at the end of a specific period. Commercial banks have a fixed percentage they give to customers who save with them. However, online banks seem promising and offer a higher return when you trust them with your money. They are safe and insured by NDIC so, there’s no cause for alarm. See saving the right way
  • Certificates of deposit: this involves depositing your money in a particular bank for a specific period without touching it. It is more rigid compared to a savings account. Here, you’re not allowed to withdraw until the maturity date. It also has a higher interest rate compared to savings accounts. Cash withdrawals before the maturity date have their penalty.
  • Index funds: this type of investment involves investing in multiple stocks rather than individual stocks. It provides for diversification so that an individual’s portfolio is not exposed to the failure of a particular stock. It is ideal for a long-term investment.
  • Rental housing: this involves purchasing a house and renting it out for public use. It can be used as a residential or nonresidential house depending on the need. Rental housing is more suitable for long-term investments because you could continue to get returns from it for years.


Investing is another way to have an additional source of income and, it also yields returns in the long run. It is crucial to know why you want to invest and what you hope to achieve from the investment so that, you know which investment option to choose. The money you plan to invest with should be spare cash you wouldn’t need soon regardless of the nature of the investment. If you’re new to investing, you can try using Dodopay. It offers a savings account that gives up to 22% accruement yearly. It also helps you lock your funds so that you don’t touch them. Visit the dodopay website to know more.

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