A Beginner’s Guide to Invest Money in 2020

A warm congratulations to you as you have made up your mind to begin the process of learning how to invest your money. Investing your money is a sure way to attain financial freedom.

The first step towards learning how to invest money starts with you, acknowledging the fact that there is a need to invest your money.

After that, you may begin to ask pertinent questions such as where to invest money to get good returns? What are the best ways to invest money in 2020? and, of course, how to invest money wisely.

We shall extensively give answers to the above questions and also let you know some good investments for beginners as well as high-risk return investment.

As we proceed in this investment for beginners'  guide, you shall get to learn more about investment, and it's immense benefits.

Your potential for investing money helps you to financial stability and financial dependence.

While some people may choose to invest their money on productive assets, others may indulge in accumulating liabilities, which may contribute to draining their limited resources.

As we begin 2020, we shall spell out the facts and let you in on the secret of finding the best ways to make money in 2020.

How to invest money


Inflation and deflation of graph - Credit: shutterstock.com

The first step of discovering how to invest money begins with why you should invest your money in the first place.

This gives you the motivation to carry out investment irrespective of the numerous pleasures you can get in spending your money.

The need to invest your money is borne out of the fact that you want your money to work for you and help you make more money. Investment is a risk in itself.

Some have lost so much money in wrong investments, while others have amassed fortunes through investments even with high risk.

We shall let you know some safe investments with high risk as well as the best investment to make money. Join us as we move on in this suitable investments for beginners guide.

Now, how do you make money? There are several ways in which an investor can make money. We have mentioned earlier that you have to invest in productive assets rather than wealth consuming liabilities.

For example, buying a painting is not a productive asset because, in 50 years from now, that is all you have, an old painting.

But when you open a showroom for showcasing your priced paintings, you may have turned that painting into a productive asset.

When investing your money, it is important to take a calculated risk. There are many good investments with high-risk returns.

high risk investments

Calculated risk - Credit: shutterstock.com

Investing in a high-risk, high return investment may catapult you to wealth or cause you to lose money if you fail to understand the nitty-gritty of such an investment.

Many have sought for ways to invest money but have been carried away by the likelihood of quick cash.

In this guide, you will learn how you can invest money and get good returns either for a long or short term basis.

Making money is definitely not easy, so you should not be too quick to invest your money without a proper understanding of the investment process.

We shall also take out time to explain those investment types that are classified as safe investments with high returns.

If you are someone who enjoys taking a risk, then you can also check out our list of high risk, high return investment. Here are the best ways to invest money in 2020:

Here are the best ways to invest money in 2020

2019 may have come and gone, and you probably have nothing saved up for the New Year. No form of investment whatsoever was made, or you did invest in some projects that left you further broke.

Well, we have got great news for you. You may be able to make good money in 2020 by investing your money wisely.

For those who were not able to invest their money last year, we hope that this guide may spur you to take proactive measures in investing your money this year.

Having seen the need for you to invest money and understand the fact that investing your money may be a risk that many are willing to take due to the high potentials of income generation.

In order to mitigate the risk of investment, it is important to know when to invest money to get good returns.

But before you can do so, you first have to know what are the best ways to invest money. We have compiled a list of some of the best ways to invest money in 2020, and they include the following:

  • Investing in the stock market
  • Investment bonds
  • Risk investments
  • High risk, high return investments
  • Safe investments with high returns

Investing in the stock market 


Stock market graph - Credit: shutterstock.com

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Many new investors have often asked how to invest money in the stock market. Investing in the stock market is a very good way to invest your money in 2020. It is a very reliable tool for wealth creation over time.

You may be surprised to find out that a $60,000 worth of investment in the stock market years ago may be worth over a million dollars today.

This goes to show that investing in stocks is surely one of the best ways to invest money.

However, before you begin the process of investing in the stock market, several checklists have to be identified through the following steps:

#1  Determining your approach to investment

For those seeking to know where to invest money to get good returns, the stock market may be a good place to start.

However, you may first need to know the approach you want to take towards carrying out your investment.

You may choose to invest in an individual stock if you have the desire and the time to carry out a regular stock evaluation. If you are smart and patient, you may be able to beat the market and make good returns. 

To make money through investing in the stock market, you may choose to invest in index funds. You may also prefer to invest in actively managed funds, which helps in tracking index. 

However, If you find it difficult to carry out stock market calculations or you do not have the time for that, then you may want to consider taking a more passive approach by investing in passive index funds.

#2  Make a decision on how much you want to invest

As an investor in the stock market, you have to determine how much you are willing to invest in the market.

If you are looking for the best ways to invest money in a short time, then investing in the stock market may not be for you.

There are a lot of uncertainties about stock prices in the short term. However, there is a greater chance of getting your return on investment in the long run.

#3  Create an investment account

This comes after identifying the right approach you want to take in investing in the stock market and determining your investment capital. You will be required to create a brokerage account.

Opening a stock brokerage account is a seamless process that may require a few minutes to complete. 

There are different types of a stock brokerage account, but for this guide on how to invest money for beginners, you may choose between opening an individual retirement account or a standard brokerage account.

We, however, advise you to go with the former.

The primary consideration is how well do you want to access your funds and why you want to invest in stocks in the first place? These two questions will guide your choice if the type of brokerage account to open.

#4  Choose your stocks

As a beginner seeking to invest your money in stocks, you may want to ensure that you use the right strategy, which will help you in your investment.

One excellent stock strategy you can use is to diversify your portfolio.

Diversifying your portfolio may provide you a better opportunity to have a higher return on investment.

Another great stock market investment idea is to avoid stocks with high volatility until you have a better understanding of the stock.

How to invest money in the stock market? The answer to this question brings us to another great stock investment idea, which requires you to learn and understand the basic concepts used in stock evaluation.

You might want to hold off on high-growth and flashy stocks as a beginner until you are a bit more experienced.

For beginners who would like to carry out an investment in individual stocks, you need to understand the principles of evaluating them.

Our guide on good investments for beginners will help you in your way to achieving success as you invest in the stock market.

#5  Continue to invest

One of the best ways to invest money, according to Warren Buffett, is to do things that are extraordinary so that you can get extraordinary results.

One of the best ways to #invest #money is to do extraordinary things so that you can get extraordinary results.... Warren Buffett

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If you are willing to make money through investing in stocks, then buying shares of businesses with a high prospect and at reasonable prices is the sure way to go. You may experience issues of volatility along the way, but you can still make good money from your investment over time.


Warren Buffett

" One of the best ways to invest money is to do extraordinary things so that you can get extraordinary results."

Investment Bonds


Investment bonds - Credit: shutterstock.com

A bond is an investment type that requires an investor to lend money to the bond issuer while the investor gets interest payments in return. Investment bonds are one of the best ways to make money in 2020.

Meanwhile, there are different types of bonds that a prospective investor can invest in to make money.  They include the following:

  • Corporate bonds
  • Municipal bonds
  • Series I savings bonds
  • Junk bond

Corporate Bonds

Corporate bonds are investment bonds that involve lending money to companies, and they provide high yield than most other investment bonds.

It is, however, preferable for investors who belong to the middle to high tax bracket.

Municipal Bonds

Our guide on investing money for beginners is appropriate for investors who are seeking to invest in municipal investment bonds and all other forms of investments.

Municipal bonds involve investing in hospitals, schools, and other municipalities. By investing in municipal bonds, you are rendering help to your community and making money in the process.

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Series I savings bond

Series I savings bond is an investment bond that is based on interest rates and changes in inflation.

Series I savings investment bonds guarantee that your money is safe because it is backed by the taxing power of the U.S government.

Junk Bond

Junk Bonds are investment bonds that are flashing and very attractive. They boast very high and double-digit yield.

You may have to be careful when investing in this type of bond because you may lose your investment when such companies promising you jumbo rates finally go bankrupt, which is a common occurrence.

Risk investment

When we talk about risk as an investor, we refer to the chances of your business underperforming or the probability of losing your investment capital. For you to make money from investment in 2020, you have to understand the concept of risk investment.

Risk investments may be categorized into high-risk investments and safe risk investment. The above two categories can be further divided into high-risk, high return investment, and safe risk high return investments.

We shall look at these broad categories and highlight some potential businesses that fall into these sections. But before we do that, let us explain the meaning of some terms.

High-Risk, high return investments

high risk, high return investment

Risk investor - Credit: shutterstock.com

Risk and returns are two closely related concepts. If you want to know how to make money wisely, then you have to put into consideration the chances of losing your investment capital and how soon you can recover your investment.

The latter is referred to in full as return on investment. Returns on investment are the profit made after deducting all expenses as well as giving room for inflation.

High returns investments may sometimes come with high risk; that is why they are referred to as high-risk, high return investments.

What can forms of investments be classified as high-risk, high return investments? Join us as we take a look at several high-risk, high investment businesses.

  • Cryptocurrency
  • Investing as angel investor
  • Spread betting
  • Penny stocks

#1  Cryptocurrency

For those seeking for best ways to make money in 2020, you may want to consider trading in cryptocurrency.

However, you should bear in mind that cryptocurrencies are digital currencies with volatile or unstable prices.

Trading in cryptocurrency is a high-risk investment because cryptocurrency prices may experience a sharp fall at unexpected times.

Investors may be forced to sell their digital currencies below the price at which it was purchased.

However, many people have made huge sums of money investing in this high-risk, high investment platform, especially when they sell their digital currencies during peak periods.

Several factors, such as unfavorable government policies and increased global acceptance, may be responsible for the rise and fall of digital currencies.

#2  Investing as angel investors

Some industry experts believe that investing in venture capital is a good investment for beginners.

Others believe that angel investment is a risky investment because it has to do with financing greenfield companies through their incubation stage down to when they can stand on their own.

It may not be classified as a safe investment with high returns; rather, it may be seen as a high-risk investment with high returns.

Why this is so is because the chances of a virgin company breaking even are quite slim when compared to investing in an already established company.

Some of these companies may fold up even before they are fully operational because they are just testing the waters and maybe entering a highly competitive market with little or no experience.

When this happens, you may lose your investment capital, on the other hand, investing in a virgin business that turns out successful, may see you smiling to the bank.

#3  Spread betting 

Spread betting is also a high-risk, high investment venture which involves betting on the price of an asset. The investor places his bet to predict if the price of an asset will rise or fall.

An investor is said to have won the bet if the predicted price falls close to the actual price of the asset.

But when the margin is quite far, the investor may lose her investment. This form of investment is definitely not a safe risk high return investments.

Spread betting predictions are made based on what bookmakers are saying about an asset. The return on investment is very high and can give you good profits, but the chances of that happening are slim.

Other forms of betting also occur in sports prediction, which is commonly referred to as sports betting.

Our investing money for beginners' guide has hinted on the need to take a calculated risk when looking for where to invest money to get good returns.

Sports betting provides a high return on investment, but the risk is quite enormous, so you must be with caution.

#4  Penny stocks

Penny stocks are a form of investment stock that is sold at meager prices with low market capitalization. Penny stocks are usually not traded inside the stock market.

They offer a very high return on investment, which poses a high risk to the investor.

You can imagine buying a stock for a low price with the assurance of selling at very high prices. Your profit margin depends on the amount of money invested.

Most people are tempted to increase their investment capital because they want to make jumbo gains.

One drawback of this type of investment stock is that it does not come with liquidity, which means that you may lose your entire investment if the company goes south.

Safe investments with high returns


Safe investment - Credit: shutterstock.com

We have extensively discussed high-risk, high returns investments, and have seen some investment opportunities with high-risk, high returns. Now let us take a look at a safe investment with high return.

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But before we do that, let us explain some terms. When is an investment said to be a safe risk high return investment? An investment is said to be safe if the chances of losing your investment capital are very minimal.

What this means is that you have a better opportunity of meeting your return on investment.

Ordinarily, safe investments usually come with low returns, but it is said to have high returns, then bear in mind that it may come with some form of risk, no matter how little.

For an investment to be regarded as safe and also has the potential to produce high returns, such a business may be seen as every investor's dream.

So if you are searching for the best ways to invest money, then you may want to consider investing in some of the following safe risk high return investment ventures.

  • Certificate Deposits
  • Online Savings and Checking Account
  • Peer to Peer Lending
  • Real Estate Investments
  • Credit and Rewards

Safe investments with high returns are some of the best ways to invest money short time.

#1  Certificate Deposits

Are you looking for where to invest money with good returns? Then you may want to consider this form of investment. A certificate deposit involves investing your money in a special savings account that gives you high returns.

The risk is very minimal and is considered a safe risk high investment strategy. When investing your money in a special savings account, you may not have access to withdraw your money until an agreed period.

It may be a year or six months, depending on the agreed savings period.

#2  Online savings and checking account 

Online savings and checking accounts are also another way you can have a safe risk of high investment. Several financial institutions provide the customer the opportunity to save their money to online savings and checking accounts.

Some financial institutions offer higher interest to their customers. The good thing about investing in online savings and checking accounts is that they do not require you to visit a physical location before you can save your money.

Transactions are mainly carried out online through an effective online banking system.

#3  Peer to peer lending

Peer to peer lending is another means of investing money for beginners. However, peer to peer lending may involve some form of risk.

You, as the investor or lender, in this case, can set up your peer to peer account from different trusted peer to peer sites.

You can decide who to lend money from a pool of people waiting to borrow money from lenders. Peer to peer lending has a reasonably high return, which is gotten from interest accrued.

To minimize the risk of losing your investment capital, you may want to partner with other potential lenders so you can spread the risk among yourselves.

#4  Real Estate investments

Are you looking for where to invest money to get good returns? You can consider investing in real estate. Investing in real estate is a relatively safe investment with high returns.

There are different forms of real estate that you can choose to invest your money. Each of these real estate types may offer high returns to investors. You can invest in residential or commercial real estate depending on your preferred choice.

Residential real estate involves investing in residential buildings such as apartments, condos, landed properties, etc. Commercial real estate includes office space, warehouses, shopping malls, hotels, restaurants, etc.

To reduce the risk of investment, especially if you have little or no capital to invest, you may want to become a real estate broker who may require you to invest more of your time and expertise with little physical capital.

#5  Credit card rewards

some investors have asked how to invest and make money daily, and this may be a way to achieve that, but it takes a lot of discipline to achieve this.

Credit card rewards refer to a situation where you are giving rewards for making use of your credit card. You only receive this reward when you make a purchase.

It is, therefore, important to only purchase those items that are high on your priority list to avoid defeating the purpose of investing. Credit card rewards are one of the best ways to invest money short term.


We have listed some of the best ways to invest money in 2020 in our good investments for beginners' guide. In this New Year, are you thinking of spending your money on those things that are unproductive?

Buying more luxury cars, going on countless vacations when you have opportunities of using that extra income to generate more money for yourself, I would urge you to sit down and search for the best place to invest money right now.

We have highlighted those forms of assets that we refer to as productive assets. You can actually convert your liabilities to assets by putting them to work for you.

It is also important to take calculated risks to avoid losing your investments. Do not be carried away by the high returns of investment, especially when you notice that such promised return may be unattainable under ideal situations.

You may choose to play it safe by investing in safe deals with minimal risk. But whatever form of investment you choose, you have to be smart, patient, and calculative.

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