What should I invest 10,000 euros in?

I often see in financial education Facebook groups the question: “What should I invest 10,000 euros in?”

This question comes from the lack of financial and investment education of the person in question and the desire to find solutions. What happens in the group at that moment? All the people, whether they have the money or not, whether they have invested or not, whether they are financial consultants or not, give advice: “invest here, don’t invest in x because I invested and lost money”. Another answer that I find invariably, every time: “invest in yourself!”

The answer to such a question is only subjective. It cannot be objective. Why can’t it be? Because the financial situation of the person in question, their desires and needs are not known.

 

I have 10,000 euros! Where should I invest them?

From my experience as an independent personal financial consultant who has analyzed over 500 personal financial situations, I can tell you that you cannot give precise answers that the person in question can use and, on top of that, it is also dangerous. If the person in question does not know the investment in question, he cannot invest.

 

I cannot give a specific answer to this question either because I do not know the situation in detail, but I will venture to convey to you the principles regarding the investment process. To invest you need savings, financial security, not to invest all your money and to make a plan to invest constantly. But let’s relate to these 10,000 euros! If a person managed to save 10,000 euros, we can relate to that he saved 10% of his income monthly and we can intuit that he has a salary of 5000 lei. 500 lei is a modest amount, even a large amount of monthly savings. This means that it took him about 8 years to save this amount and psychologically he is not at peace and it would not be right to invest all the money he has saved.

If he has a monthly income of 5000 lei, it means that somewhere in the middle, that is, 2500 lei are fixed expenses. To invest we need to keep between 3 and 12 months of savings. If he wants 12 months of fixed expenses, it means that the money saved should be 6000 euros. 6 months means 3000 euros. This money is for the financial security fund. We also need money for possible expenses – unforeseen expenses and let’s say, roughly, 1000 euros. In total, 7000 euros should not be invested, but left in a bank account, with an interest rate in line with inflation for safety. The only money that should remain at an interest rate in line with inflation. All the rest should be invested.

The remaining 3000 euros and the money that is saved monthly – 10% of the monthly income can be invested.

Therefore, there are 3000 euros left to invest.

 

What are the financial instruments that can be invested in?

I personally recommend the financial instruments that underpin the economy: stocks, bonds, government securities. These are the instruments in which we can invest to bring us a source of passive income but also to help the economy.

 

What else can you invest 3000 euros in?

Not in a real estate, because the amount is too small.

Possibly in a business, but that investment takes time. A business is like a job, only you work for yourself.

You can also invest in collectibles. Get yourself a watch that appreciates over time. This is between a minimum of 3000 euros or 5000 euros, depending on the model.

You could say that you can invest in virtual currencies, but it is an unregulated investment and as I told you, it is good to invest in a safe way.

In addition to having savings, it is also necessary to be careful what you invest in so that you do not run out of the money you have saved in a few years.

 

You also have the Forex market as an option. This takes time and is volatile.

You can invest in other businesses or peer-to-peer projects where, likewise, the risk of losing money is high because it is not regulated.

You will find all the investment methods that you can access from Romania explained and analyzed in the book: “Investments – All types of investments”. https://www.psihologiabanilor.ro/product/e-book-cum-sa-iti-gestionezi-banii-metode-de-investitii/

 

How do I invest?

Financial instruments are the basis of the economy. You can invest passively through investment funds in which you have access to the experience, capital and performance of administrators who have been investing for decades or hundreds of years and for a commission (I recommend a small one and which is not related to the account balance, but to the amount you deposit) or you can invest yourself on the Stock Exchange – the regulated market – but you need time, knowledge and experience, practically a side job.

 
For it to be a safe investment, you need to treat it as a long-term investment, at least 10 years, during which you will have capitalization: the eighth wonder of the world and to invest constantly through the safest strategy, which gives you very good returns, an enviable performance: dollar cost average. You can find more details here: https://www.psihologiabanilor.ro/cum-sa-pui-banii-la-lucru/

 

If you liked the article, I invite you to share it with your friends so they can also find out what to invest their money in and how to invest 10,000 euros.