I think everyone in life who starts thinking about the future primarily thinks about financial stability. Something along the lines of  money shouldn’t just sit under a pillow because inflation eats it up; or money is like a muscle, if you don't use it and train it, it simply atrophies; or savings without investments are like a car that goes nowhere. It looks nice sitting in the garage, but it loses its value every single day. Honestly, you can come up with countless thoughts like that.  

And as soon as you start looking into this, you will definitely come across the word Investing. And yes, I will step away from geopolitics and market analytics for a bit.
And yes, as soon as people talk about investing, most think of stocks and bonds. Though today you can invest in anything, from virtual lands to Pokemon cards, and I admit, the last two methods are controversial, but people do make a profit there too. So today I will break down the available investment tools and what you need to consider before entering this industry.  

Before we begin, here is a quick fact I recently came across  in the world of investing, there is a story that might impress you even more than some of Warren Buffett's successes. This is the story of a Swede named Curt Degerman. For over 30 years, he lived like a homeless man, collecting cans and scrap metal on the streets. However, Curt spent all his free time in the library, studying financial newspapers. For decades, he invested every single penny he earned into regular stocks of the best Swedish companies and gold. When he passed away in 2008 at the age of 60, it turned out that thanks to compound interest, he left behind a fortune of 1.4 million dollars. I wanted to share this story to give you a bit of motivation and inspiration. As the saying goes - He who would move a mountain begins by carrying away small stones.  

Now let’s look at what tools exist in the market.  

Stocks.
When you buy a stock, you get a tiny share in a company ( for example, Apple, Nvidia, or Alphabet ). You can make money on the growth of the stock value itself (bought cheaper, sold dearer) or on dividends (a portion of the profit that the company regularly pays out to shareholders). On the downside, there is high volatility. Stock prices can fluctuate due to news, company reports, or market crises. You can either make money fast or temporarily or permanently lose your capital.  

Bonds.
A fixed-income tool. By purchasing a bond, you are essentially lending money to a state or a private company at interest. I don't know if that's the right way to put it, but in reality, that's exactly what it is you basically become a creditor. You will earn income from regular coupon payments (the interest for using your money). At the end of the bond's term, you get its full face value back. Speaking of the risks of this tool, it is the issuer default risk (if the company or country goes bankrupt or declares default). But I must add that government bonds, specifically government ones, are considered one of the safest tools in the market.  

Cryptocurrency, DeFi.
If you are bored with classic investment tools, the 21st century offers instruments with a solid dose of adrenaline and potential profits. Besides simply buying Bitcoin or Ethereum, there is staking ( similar to a deposit ) and lending (lending crypto out at interest). Everyone has heard the story that if you bought 5-10 dollars worth of Bitcoin back then (just a couple of cups of coffee or two McDonald's meals), you would be a multi-millionaire now with tens of millions of dollars in your balance. Speaking of risks, as I wrote at the beginning, the adrenaline here will pump right through your veins. You can literally become a dollar millionaire in a week, or lose 99% of your capital in just 1 hour.  

Investment Funds and ETFs.
And just so you know, these are two different tools that are often described together or used as synonyms. They have different investment strategies, but the capital allocation method is similar, so we will cover both tools at once. So, what are Investment Funds and ETFs? Instead of buying shares of a single company, you can put your money into a fund. Retail funds and ETFs pool money from many investors to buy a portfolio of hundreds of different stocks or bonds. ETFs are traded on the stock exchange just as easily as regular stocks. You might know ETFs like VOO, SPY, or VTI. The risks here are also minimal, because essentially you are creating a diversified stock portfolio. For instance, if one company inside the fund goes bankrupt, the other 99 will pull your portfolio up. This is the perfect option for a passive and long-term investor who is afraid of risks.  

Crowdlending.
You invest money through special online platforms where you lend money directly to real businesses or startups alongside hundreds of other small investors. There is a huge similarity to bonds here, they share the same core nature. It works in a way that you will receive a monthly return of a portion of the debt along with high interest, which usually significantly exceeds bank deposit rates. The risks here are also similar to bonds there is a high percentage of non-repayment or loan defaults. Small businesses fail often, and if the borrower company goes bankrupt, recovering your funds through a crowdfunding platform can be extremely difficult or outright impossible.  

Annuities.
You could say this is a guaranteed pension. These are basically long-term financial or insurance contracts where you deposit an amount ( either as a lump sum or in installments ), and the insurance company commits to paying you money regularly in the future. I mentioned pensions at the beginning, and this method is indeed most commonly used as a retirement planning tool to ensure a stable monthly income in old age. The risks are minimal, but there are downsides, and one of them is low liquidity. Withdrawing money from such a contract early without heavy penalties is usually impossible.  

Alternative Investments ( though I wouldn't make a major financial bet on them or call them a smart financial decision in investing, the modern world demands it anyway ).
You invest in physical collectibles that hold high value among a niche audience and become rare over time ( for example, collectible LEGO sets, as I already mentioned Pokemon cards, sneakers, rare wine, rare or exclusive cars, or Rolex watches ). You make money by reselling the asset to collectors or fans years later, when the product completely disappears from store shelves and turns into a shortage. On the downside, there is low liquidity and the risk of counterfeits. Selling a LEGO box or a bottle of wine quickly at market price when needed won't work, because you need a specific buyer, and finding that buyer can take months or even years. Plus, you need to know the subject perfectly and store the items correctly.  

In conclusion, I want to wrap up by saying that you don't need to buy everything at once. Only invest what you are ready to lose, and stay out of things you don't understand. This article is not about where it is better for you to invest or what is best and what isn't, it is about you not letting inflation eat up your money and keeping it safe. Build yourself a financial safety net, take your first steps in this industry - even buying a single bond or a fraction of an ETF fund for a few dollars, and that's it, the process is already running. And if doubts creep in, just remember Curt, whom I wrote about at the beginning - the guy didn't wait for the right moment or a liquid market, he simply started with cans.  

Thank you for taking the time to read my scribbles. The world and topic of investing is quite vast and deep, but I hope I managed to explain its basics on the surface. Have a great day.