Investing is something that has been around for a very long time and has only gotten bigger and more world recognised more recently. It feels like there are always new things to invest in and we want to consider all the good options for you and help you make a good decision if you do invest
Why Should You Invest?
Investments can provide an extra form of income, a boost in retirement funds or get you out of financial jam. Investing can grow your wealth, give you help with your financial goals and help you with purchasing desirable things. If you have extra income just lying around you could turn that into even extra disposable income using that.
With Auto-Pilot investing you can build your wealth with low-risk and low-return investments or high-risk and high-return investments. One thing you need to make sure of is that you have the right type of financial position to do this.
Are Competitions and Gaming Platforms Investments?
Not everything we put money into in order to gain more is classed as an investment. For example, entering competitions like raffles where you have to pay and hope that your number gets drawn out and you then win a big lump of cash, is not an investment. That is simply just a competition, sort of like a form of gambling. Which leads us nicely onto my next point…
Gambling is also not classed as a form of investment, despite people doing it full time and making lots of money for it. Gambling is more classed as a form of entertainment, like standard gaming, but in this case you can win money. Some games are more prized than others, for example jackpot slots can actually make you into a millionaire, whereas some games have lower odds and prizes.
If you are looking at raffles and gambling as a form of investment, we advise that you change this perception and consider other alternatives. However, if you’re looking for a form of entertainment with the added bonus of being able to potentially win money, this is a great option for you.
Savings Accounts
Some savings accounts pay you interest on your cash balance that you have.
Risks For Savings Accounts
Many of the banks that offer accounts are insured so you won’t have to worry about losing the deposit but you have to stay under the insurance limits.
High-yield savings accounts are considered safe investments but you do run the risk of losing purchasing power over time with inflation if the rates for these savings accounts are too low.
Rewards For Savings Accounts
There are fewer overhead costs which means you can earn much higher interest rates at some online banks than at other banks. Also, it means you can have easy access to the money stashed away.
You also are likely to gain purchasing power if some rates go above inflation.
Dividend Stock Funds
Dividends are portions of a company’s profit that can be paid out to shareholders. Dividend stocks are stocks that offer a cash payout (not all stocks do). In my opinion, this is best for advanced investors so if you do not have experience in picking the right investments then I suggest you start with savings account investments as it has fewer risks.
Risks for Dividend Stock Funds
There is a risk with stocks however, they are safer than non-dividend stocks but they are still a risk. You need to find a company that has a good history of dividend stocks increasing and not dropping. Some well-regarded companies can still be hit fairly badly and the stocks can drop.
Rewards for Dividend Stock Funds
Stock market investments can be safer investments than dividend stocks
With Dividend stock, not only can you gain investment through long-term appreciation, but you will also learn cash in the short term.
Housing
I find renting to be the best type of investment for making the most money. If you have enough money to find the right property and look after it then you could make a great amount of money.
Risks For Housing
You have to look after the home and could be woken up at 4 am by a rentor’s burst pipe. It is very easy to buy and sell your assets with a click of a button on the internet which could be seen as a massive risk.
Rewards For Housing
At some point in the year, the rates for properties will fall and this is when you should invest so you can wait for it to rise again so you can make the most profit possible. However, if the market is unstable, I suggest not taking the risk and going for a different type of stock that is safer.
This type of investment can be a good base for making an extra load of income.
Picking the type of investment which is best for you is only a decision you can make. Personally, I invest in Real Estate and it makes me a lot of money over time. This money I put inside a savings account so it makes more money for my retirement fund.