If you’ve built up a small stash of savings, you’re probably wondering what to do with it. Of course, you can always lock it up in a high interest bank account. This is one sure fire way to guarantee a small increase over time. However, we bet there’s a small part of you that is eyeing up the investment route. We all hear the success stories; many investors double or triple their money over time. That’s got to be better than a bank account, right?
Well, yes. It certainly is, but only if you do it right. For every success story in the investment world, there are a handful of horror stories! When you invest, your money is at the mercy of the market. Yes, it can go sky high, but it can also fall. Today we’re going to show you how to avoid this pitfall. There is a sensible, secure and risk free way to approach investing. We’ll share the secrets with you now.
1. Shares
Trading stocks and shares is the investing you imagine when you picture Wall Street. It’s the rapidly moving stock market and betting and trading on the prices. Of course, it doesn’t have to be as fast and furious as you see on the trading floor. The very best investments are long term, sensible ones.We suggest playing the long game with stocks. In general, the stock market always moves upwards. Invest sensibly and you’ll ride out any temporary dips. You can also try your hand at the trading game. That means selling when the price is high and buying low. This is the risky tactic where money is often lost, but big money is gained!
2. Forex Trading
The art of forex trading is understanding the fluctuations in currency values. At its core, this practice involves exchanging currency at just the right moment to capitalise on valuation. Naturally, the value of the dollar, the Euro and the British pound all vary on a day-to-day basis. Trading between them, and others, at the right time, can secure big profits.
3. Mutual funds
We advise a lot of first time investors to take the mutual funds route. With this tactic, you’ll hand over a lump sum (or monthly payments) to a money manager. This will be an expert broker who knows his stuff. He’ll bring your money together with that of other clients, hence mutual fund. The advantage of this is that it’s a large sum of money to spread across numerous investments. Rule number one in investing is to diversify and spread your portfolio. This allows you to do that without risking too much.
4. Bonds
Bonds are essentially a loan. You use your money to loan a company or the government some money. After a set period of time, you’ll receive it back, with interest. It’s a simple way of investing and probably the safest and most risk-free on the list. Since governments and businesses are obliged to pay you back, you’ll always get the money returned. It’s a good way of ensuring financial security.
5. Property or assets
Building up equity in assets is one way to invest where you keep control over your finances. By putting your money in property or physical investments, you keep it close to home. When you play the property market correctly, there is a lot of money to be made. You could rent it out, refurbish it and flip it. On the other hand you could simply hold on to it as it increases in value over time.
There you have it, folks! A simple guide to investing your hard-earned money.
