So you find yourself on our site because you are thinking of investing your hard earned cash. Investing is a wonderful way to make money when done right. There are also many ways that people don’t think about when you think about investing. Take a look at our guide to see what types of investments there are and whether you should be investing or not.
What Are Investments?
Investments are where you buy an asset or item to get a profitable return. If you have more than one investment you can then start to create a portfolio. Not all investments are on the stock market, you can also invest in yourself or a specific person. There are some tools out there to help you start investing. Take a look at what types of investment are there below.
What are the types of Investments?
When you think of investing your first thought might be to head straight to the stock market . The stock market is a popular choice among investors and you can have a successful turnaround if done properly.
You might think that you have to pay in large sums or buy massive amounts of stocks to see returns but this is not always the case. If you are a newbie at investing in the stock market you can start off by investing small amounts until you learn the way the stock market works and all the jargon that comes along with it. I personally started by buying one stock at a time in well known companies. Once you are up to speed with the way it works and are comfortable that you have the knowledge you can start to invest a little bit more money.
Digital Robo advisors
If you want to invest but are a little clueless then why not think about using a digital robot to invest your money for you. How digital robo investors work is that they take into account all your requirements and preferences and use that knowledge to make investments relevant to you. There are a few digital robo advisors out there to choose from, some include, InvestSmart, Plenti and Quiet Growth.
You might have heard of premium bonds and if you own a UK card you could be eligible to purchase them. Almost half a million Great British Pounds worth of premium bonds are currently unclaimed by Australians with the biggest unclaimed prize being a whopping £100,000.
If you are new to premium bonds then here is a quick overview on how they work. All you have to do is pay a minimum of £25 and you are put into the draw to win cash prizes. The prizes can vary from £25 to £1 million, the more premium bonds you buy the higher your chance of winning is. It’s similar to the lottery where you have to buy ‘tickets’ to win, however instead of losing your money after the draw, it stays in your account ready for the next draw. Premium bonds are not there if you are looking for a quick turnaround investment.
The best investment you can make is in your future. You can put money aside into a retirement fund through the government fund scheme, superannuation. If you are earning more than $450 a month then your employer should automatically enroll you into the scheme and match any contributions you make. If you are self employed you can still make a contribution into the superannuation, you will just have to set it up yourself.
A popular way to invest your money is in real estate, whether you are buying a house to rent, flip or keep as a long term investment buying real estate is usually a great investment option. Buying a home to invest in isn’t as simple as you might think, you will need to do some market research before purchasing the first house you like the look of.
Collectables and Antiques
If you are someone who likes collecting and finding hidden treasures at markets, charity shops or garage sales, then think of turning your hobby into a way to invest and make money. This will only work if you have a good eye for finding valuable items at a low cost. Some items you might be able to sell straight away for a profit whereas others might need to mature before the value increases.
If you become skilled at this you could invest a little more money into this by buying more valuable objects such as paintings and vintage cars. By increasing your investment money you will hopefully see bigger returns.
Invest in yourself
If you have always wanted to start your own business but haven’t got around to starting it then why not start now. Investing in yourself is a great way to earn money and save for your future.
If running your own business isn’t for you then think about starting the ‘coffee jar’ or any jar or box will do. If you do not tend to have loose change on you ten you can set up a bank account to put your savings into. This is when you put your loose change or a specific amount into a cookie jar to reach a goal. You could then use this money to invest in something you thought you couldn’t invest in before.
What Are The Rewards And Risks Of Investing?
We hope that your investments bring you plenty of rewards, you can receive the rewards in a number of different ways that include shares, properties, interest etc. But remember that although the rewards look appealing many people lose money investing leaving them out of pocket, so be smart when choosing to invest.
Should you Invest?
If you have a lump some of money that you are unsure on what to do with then you should think about investing it. Choses a type of investment that suits you and your comfort level for risk. Just remember to do your research and know when to start and stop investing.
While you are here take a look at WHAT YOU SHOULD KNOW ABOUT RETIREMENT SAVINGS ACCOUNTS.