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How to invest your money safely in 2025: A balanced approach

The return component: equity ETFs

Shares — they’re the heart of long-term investment returns. You know, only stocks tend to beat inflation over time. Without them, you’re just treading water while prices go up. The trick is not to put all your eggs in one basket, or well, a few baskets. Broad diversification across sectors and regions is key. Imagine investing in around 1,400 companies worldwide through a single ETF — that’s pretty much what a global share index ETF offers.

What’s fascinating here is that despite the occasional rollercoaster ride of the markets, historical data shows steady growth if you hold on for the long haul. By long haul, they mean at least 15 years, which honestly feels like forever but statistically pays off. The current averages suggest you can expect roughly a 6% return on shares if you stick to these rules. Not too shabby, right?

The security component: interest rate products

Now, it’s not all about chasing returns. You also want a safety net — something that doesn’t bounce around like the stock market does. That’s where interest-bearing investments come into play. Call money accounts let you stash cash that you can access anytime, while still earning some interest, which is nice. Just make sure that the bank offers good rates and is covered by deposit protection schemes.

Then there’s fixed-term deposits. You lock your money away for a set time, usually months or years, and get a fixed rate. Downside? You can’t touch that money until the term ends. It’s like putting your cash in a safe and throwing away the key temporarily.

Money market ETFs are another interesting option. They’re sort of like a blend between stocks and cash accounts — safer, but easier to manage than hopping between banks hunting for the best interest rate. If you want to get an even clearer picture, check out how to invest your money safely, where these products are explained in detail.

A property can be a sensible investment

Let’s veer off a little here. Property investment might seem like a no-brainer — after all, bricks and mortar feel tangible compared to digital numbers in your bank account. But here’s the catch: it takes quite a bit of effort. Maintenance, tenant troubles, market fluctuations — stuff that can make you rethink the ‘safe’ label.

Plus, property puts a big chunk of your wealth in one place. Think about it: if the local market dips or the neighborhood changes, your whole investment could take a hit. Unlike stocks, where diversification cushions you, property is more like betting on a single horse. Still, many find comfort in owning something physical and can generate steady rental income. It’s not for everyone, but it is a valid piece of the investment puzzle.

Which investment do we recommend?

Here’s the nutshell: blending stocks and interest-bearing investments offers a balanced approach. Stocks provide growth potential, while the interest products give stability and liquidity. You don’t have to juggle dozens of products either. With just a few well-chosen ETFs and savings accounts, you can build a solid portfolio.

That said, it’s crucial not to dive in blindly. Spend time understanding the products, risks, and your own financial goals. There’s no magic bullet, and what works well now might need tweaking later. Patience and steady adjustments tend to beat chasing quick wins every time.

Digression: The psychology behind investing

Here’s something off-topic but worth pondering: investing isn’t just about numbers and market trends — it’s a mental game. Fear and greed often drive decisions more than logic. Stories of overnight millionaires flood headlines, but most success comes from sticking to a plan during boring or tough times. It’s tempting to panic during dips or jump on hype trains, but that’s like trying to catch a falling knife. Discipline, or lack thereof, can make or break your financial journey.

Final thoughts on how to invest your money safely

Well, putting money into different buckets — shares for growth, interest products for safety, maybe a bit in property if you’re up for it — gives you a fighting chance against the ups and downs. The key is spreading risk and staying the course. Nobody knows the future, obviously, but with a thoughtful setup, you can sleep better at night knowing your investments aren’t all eggs in one basket.

It’s a bit like gardening; you plant seeds in different spots, water them regularly, and hopefully, after some seasons, you get a decent harvest. No guarantees. Just probabilities and patience.