What can you invest in

When it comes to investing, one of the first things to decide is what are you going to invest in.

The answer to that question will be personal and depend a lot on your own financial situation.

There are two main considerations:

  1. How much surplus income or capital you have

  2. How long your time horizon is

Surplus income

All investing carries risk. How much risk you can take depends on how much money you have over and above what you need. I would suggest setting a budget for investment that is at least 10% of your monthly income. That’s a small enough amount that it likely won’t affect your monthly spending too much, but it’s not so small that it won’t make a difference. Any amount set aside for investing must be set aside with the intention that you will not touch this money, will not spend it or use it. It is there to grow.


Time horizon


If you’re young, you can likely invest for a long period of time and withstand some ups and downs. If you’re retired and using your money/investments to live on, then you will need to be a bit safer with your approach. Less risk, more certainty.

Before going into asset classes, it’s important to understand the difference between investing and speculating. Most don’t understand the difference.


When you invest, you purchase an asset that you expect will generate a return in and of itself (earnings, dividends, etc.). When you speculate, your return is solely dependent on someone else being willing to pay more for that asset in the future.

Assets that are speculation not investments include things such as commodities (including Gold), currencies, cryptocurrencies, art and classic cars.

The main asset classes you need to consider for investing in are:

  1. Cash

    Typically in the form of physical currency or deposits in bank accounts, that can be quickly accessed and used for transactions. When you hold cash, you are essentially holding a low-risk, highly liquid form of wealth. The return on cash comes in the form of interest earned on savings or money market accounts. While the risk of losing money is minimal, the main drawback is that cash returns often struggle to outpace inflation, potentially eroding purchasing power over time.

  2. Government Bonds:

    Government bonds are debt securities issued by a government to raise capital. When you purchase a government bond, you are essentially lending money to the government in exchange for periodic interest payments and the return of the principal amount at maturity. These bonds are considered relatively low-risk, especially those issued by stable governments, and they provide a fixed income stream. However, the main risk is interest rate risk, as bond prices tend to fall when interest rates rise.

  3. Corporate Bonds:

    Corporate bonds are debt securities issued by corporations to raise funds for various purposes, such as expansion or debt refinancing. Investors who buy corporate bonds become creditors to the issuing company, receiving periodic interest payments and the return of the principal at maturity. The risk associated with corporate bonds varies depending on the creditworthiness of the issuing company. Higher-risk bonds, often referred to as junk bonds, offer higher yields but come with increased default risk.

  4. Stocks:

    Stocks, are also known as equities or shares, and they represent ownership in a company. When you buy shares you become a partial owner of that company, entitled to a portion of its profits (if any) and (sometimes) voting rights in certain matters. Your returns as an investor come in the form of capital appreciation (increase in stock price) and dividends. However, stocks are inherently riskier than bonds, as their value can fluctuate significantly due to market conditions, economic factors, and company performance.

  5. Property:

    Property investment is typically split into residential or commercial, with the expectation of generating rental income or achieving capital appreciation. While property can be a source of steady income and long-term growth, it comes with risks such as property market fluctuations, maintenance costs, and the potential for prolonged vacancies, which can impact overall returns. Property typically uses significant amounts of debt (mortgages) which amplify returns- both good and bad. We’ve got much more information on houses as an investment at the link here.

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Asset Allocation