Where to invest 2000 EUR in 2023
Investing 2000 euros is a good way to get started in this world and make the most of the money that is sitting in the bank. We come from years where inflation has been low or negative but this is over. Now leaving money in your current account makes you lose purchasing power every year.
Therefore, if you want to multiply your savings and you have never approached the investment world, investing 2000 euros is a figure you will probably feel comfortable with to start with.
One of the main keys when investing your savings is not to use money that you are going to need in the short term to avoid having to mis-sell. So we recommend you to have a cushion equivalent to 8-12 months of expenses and from there use your savings to multiply your wealth.
It is also essential to invest your savings wisely. If you have heard that just by investing 2000 euros you are going to get a bonus every month, you will probably lose it.
The key to multiplying your savings lies in investing for the long term and with a goal in mind (retirement, buying your home, buying a car) that will help you and motivate you to keep saving and investing.
How to invest 2000 euros
As we have already mentioned, you have to invest those 2000 euros wisely and in safe products where your money is safe.
Avoid investing in products that promise high returns in the short term because most likely they will not give the promised return or you will lose all or part of the invested capital.
To invest 2000 euros diversification is key and even if you think it is little money there are products that allow you to diversify with low risk and low cost.
Do not put all your savings in the same product, diversify among different products, countries and sectors.
What to invest 2000 euros in
With the advent of the Internet, access to products that were very expensive or for large capitals a few decades ago has become much more democratic.
We are going to recommend the products that for an average investor are the best in terms of profitability, security and commissions.
Therefore, deposits and interest-bearing accounts are not products that we recommend to our clients. The profitability does not exceed inflation and we do not consider them the ideal vehicle to multiply your savings.
Investing in passive management is also an optimal product if it is through mutual funds and not ETFs. ETFs are fiscally like stocks. And it is advisable to diversify between passive and active management to maximize the return on your savings.
Finally, pension plans are an optimal product for the long term. Traditionally in Spain they do not have a good reputation due to their low profitability and high commissions. Today, thanks to the advent of the internet, you can access pension plans with lower commissions and higher profitability, so it is not a product to discard in order to complement your future pension.