The Great Recession, which occurred during the early 21st century, paved the way to a more difficult path towards achieving financial stability and future security.

Before the global economic decline, even low wage earners lived within means and had adequate opportunities for career advancement while consistently building their retirement savings.

Today, however, job markets are ruthless and the art of investing has become exclusive to the affluent part of society. If you are an aspiring investor who desires to better manage his/her spare cash instead of parking it in a savings account that pays measly interest, here are some sound advice on what to invest in.

Know What Investment Vehicles Are Available

There are countless financial products out there including stocks, futures, bonds, REITs, TIPS, commodities, currencies, and so forth. The type of investment vehicle you choose depends on several key factors, such as the holding duration of the asset, market volatility, and the amount of capital you plan to invest.

To put these three considerations in perspective, take this for example if you buy 10 shares of a stock with low market liquidity and volatility and plan to hold it for 5 to 10 years, the profits are very limited if not nonexistent since inflation would have wiped out the profits on those 10 shares plus theres not much price movement to take advantage of.

Consider Investing in Mutual Funds

For investors who have neither the experience and knowledge in investing nor the time and effort to learn it, investing in a mutual fund seems like the most pragmatic and potentially profitable choice. It does, however, require you to thoroughly research different mutual funds, contact each in person or by phone, and make an informed decision after. Check the mutual funds company profile, especially the fund managers running it, their performance history, and the strategies they use to achieve those records.

A mutual fund will decide what to invest in, meaning you also get the benefit of diversifying your portfolio. At any time, your capital may be subdivided into stocks, options, real estate, etc. If you are comfortable with an added layer of risk and have a large capital to invest, you can also join a hedge fund, which is similar to how mutual funds work with the notable difference of having a higher risk profile with the promise of higher gains.

Be Patient

Patience can be the single most important trait a person should have if he/she is to become a successful investor. Investing moguls like Warren Buffet are known to sit on a stock for years, disregarding the negative price fluctuations and maintaining their fundamental stand on the said stock.