No matter if you want money set aside for retirement or if you have big dreams of maximizing your financial worth, it is never too early to start investing money for your future.

A good investment allows you to build upon your money, eventually creating a pocket of wealth.

Investing is different than saving money. Saving money involves putting aside money for emergencies, while investing money involves making informed decisions to purchase assets that you think will increase in value.

You’re ready to start investing money once you have a stable job and you have at least three months of savings set aside to cover any emergencies (such as losing your job).

Equities

When most people think of investing, equities (stocks, mutual funds of stocks, or exchange-traded funds) come to mind. Purchasing a share of a company and monitoring the stock market is a popular way to start investing.

If done correctly, investing in equities can pay off. But any time the stock market is involved, there are always going to be risks to your investments.

To start investing in equities, you should have an understanding of the different types of equities, know what you want to invest in (and why), have a set budget, and know how to monitor the stock market. You might also want to work with an investment platform or contact a financial adviser.

401(k) plan

If your primary reason for wanting to invest is to secure retirement funds, check with your employer to see if they offer a 401(k) plan. A 401(k) is a retirement plan that allows you to invest part of your paycheck before taxes are taken out.

Some employers will even match a portion of the money that you contribute to the account. When you retire, you’re able to remove the funds from the account. Early withdrawal from the account comes with penalties unless you qualify for an exception.

If your employer doesn’t offer a 401(k), they might offer a 403(b). If your employer doesn’t offer either one, consider contributing to a Roth IRA.

Cryptocurrency

Cryptocurrency (or digital currency) is one of the newest ways to invest, but online platforms are making it easier to trade cryptocurrency and start investing. If you’ve heard of Bitcoin or Ethereum, you already have some familiarity with cryptocurrency.

Just like the stock marketing, investing in cryptocurrency comes with risks. As the cryptocurrency trend continues to grow, however, you may find that investing in cryptocurrency comes with high returns.

To invest in cryptocurrency, you’ll need to choose an exchange, choose a currency, and get a cryptocurrency wallet. If you’re planning on trading to increase your investment, you’ll also need trading software. If you want to learn more about trading software, check out this Bitcoin Revolution review.

Collectibles

Not many people realize it, but a good collection is a form of investment. While there are risks in creating collections (anybody who collected Beanie Babies in the 1990s is out of luck), there are certain ways to create a collection that can be resold at a high price.

Artwork, fashion accessories, vintage childhood toys, ceramics, and franchise memorabilia could all be worthy collections to invest in.

The key is having a collection that is unique and well-taken care of. For example, if you’re collecting items from the Harry Potter franchise, you’re going to want to leave them in their packaging to prove they’re original memorabilia. Leaving collectibles in packaging also helps prevent them from getting damaged.

Real Estate

Investing in real estate can pay off if you have the time and money to maintain multiple properties. If you’re interested in investing in real estate, you’re going to need to make sure that you’re able to maintain the mortgage on your current property and any additional properties you buy.

There are multiple ways to invest in real estate. Maybe you’re planning on renting the property out, or maybe you’re planning on flipping the property, or maybe you’re planning on just holding onto the property until you can resell it for a higher price.

The property marketing is booming in Arizona; investing in real estate in cities such as Paradise Valley, Scottsdale, or Cave Creek could pay off in the future.

Concluding thoughts

Getting started with investing now is a great way to be financially secure in the future. While there are risks associated with all forms of investment, doing your research ahead of time and meeting with a financial adviser can set you on the path to success.