{"id":283817,"date":"2024-01-14T12:52:41","date_gmt":"2024-01-14T12:52:41","guid":{"rendered":"https:\/\/northern.finance\/unkategorisiert\/investing-money-properly-these-investments-will-pay-off-in-2024\/"},"modified":"2026-02-18T14:58:44","modified_gmt":"2026-02-18T14:58:44","slug":"investing-money-properly","status":"publish","type":"post","link":"https:\/\/northern.finance\/en\/learn-how-to-invest\/investing-money-properly\/","title":{"rendered":"Investing money properly – these investments will pay off in 2026"},"content":{"rendered":"\n

Uncertain state pensions, high inflation rates and prices, long-term goals – there are numerous reasons to invest and grow money. Are you also dealing with these issues and want to start investing your assets, but don’t know where to start? In this article, we have summarised the most important basics so that you can learn how to invest money properly<\/a>! <\/strong><\/p>\n\n\n\n

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In brief:<\/strong><\/p>\n

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  • Would you like to start investing your assets but don’t know how? <\/li>\n
  • If you have familiarised yourself with these 8 tips, you already know the basics.<\/li>\n
  • We show you what the magic triangle of investing is and how it can help you to assess an asset class<\/li>\n
  • Depending on your goal and priorities, you could benefit from these asset classes<\/li>\n<\/ul>\n<\/div><\/div><\/div>\n\n\n\n

    Investing made easy – follow these basic rules<\/h2>\n\n\n\n

    Before you can decide on an investment, you should first familiarise yourself with the basics. Investing only works if you have built up a basic knowledge<\/strong> and have an overview. In the following, we will show you what the so-called magic triangle<\/strong> is and which rules apply regardless of the investment, before we look at the exact investment options. <\/p>\n\n\n\n

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    The magic triangle of investment<\/h3>\n\n\n\n

    The magic triangle of investment is a model that deals with the objectives of asset classes<\/strong> and is made up of three different components. Every possible investment can be described in terms of these three components<\/strong>: security, liquidity and profitability. <\/p>\n\n\n\n

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    • It should be noted that this is a model that describes the fundamental objectives of investors<\/li>\n\n\n\n
    • Each of the three components mentioned is about a goal<\/li>\n\n\n\n
    • However, it is impossible to find a system that can fulfil all three objectives at the same time<\/li>\n\n\n\n
    • Investors need to prioritise and can divide investors into these components to get a better overview<\/li>\n<\/ul>\n\n\n\n

      Security <\/strong> describes how risky the respective investment is. Different asset classes have different levels of risk. If you want to invest, it is always important to consider the possible risks in advance and find out whether you are a safety-oriented investor or are prepared to take risks. <\/p>\n\n\n\n

      Liquidity <\/strong> is often referred to as availability. It describes how quickly you can access a financial investment. For example, if you have taken out a long-term building society savings contract, you cannot simply withdraw the assets. If you have set up a call money account, this ensures a high level of liquidity or availability. <\/p>\n\n\n\n

      Profitability <\/strong> can be used to estimate how high the potential returns and profits are that you can achieve with the respective investment. This aspect is often related to the time you have available. The longer you have invested in an asset class, the more you can benefit from the compound interest effect. <\/p>\n\n\n\n

      As already mentioned, it is not possible for investors to fully fulfil all three objectives with just one asset class<\/strong>. For example, shares are associated with risks, but offer the opportunity for high profitability, for example to make private provisions. Call money accounts offer very high availability and security, but hardly any profitability. <\/p>\n\n\n

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      The magic triangle of investment<\/figcaption><\/figure>\n<\/div>\n\n\n

      Invest money properly with these 8 tips<\/h3>\n\n\n\n

      Below we provide you with some valuable tips on the basics of investing. If you want to invest assets, you should familiarise yourself with these topics in advance and find out what suits you as an investor. <\/p>\n\n\n\n

      1st tip: What risk type am I?<\/h4>\n\n\n\n

      Everyone deals with risk differently, often with different characters<\/strong>. Some people get nervous when investing in asset classes with higher risks, feel uncomfortable and often look at their own portfolio. Others enjoy it and consciously take risks. <\/p>\n\n\n\n

      Personal circumstances <\/strong> also depend on how risks are handled. A young student about to start working life can take more risks than an older person who wants to top up their own pension with investments. <\/p>\n\n\n\n

      You should only take risks that you can tolerate without acting emotionally or feeling uncomfortable. Therefore, find out what type of risk-taker you are<\/strong> and ask yourself the following questions, for example: <\/p>\n\n\n\n

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      • How much loss could I bear from a financial point of view?<\/li>\n\n\n\n
      • Do I get nervous or panicky when my own portfolio makes temporary losses?<\/li>\n\n\n\n
      • What is fundamentally more important to me: security or returns?<\/li>\n<\/ul>\n\n\n\n

        2nd tip: Pay off debts<\/h4>\n\n\n\n

        Before you start investing, certain debts should be paid off. If you have signed a building contract that will run for years to come, it doesn’t make sense to wait. On the other hand, if you have credit card debt with high interest rates<\/strong>, for example, these should be paid off in advance. <\/p>\n\n\n\n