Investing is a means of spending money to make a greater return in the future. Many people get involved in investing as a way of making some extra money on the side. Here’s just a brief guide to some of the opportunities out there for those that want their first taste of investing.
Put your money into a savings account
If you’re looking for a risk-free form of investing, a savings account could be the best option. These accounts collect interest over time, allowing you to earn some extra money on your savings. The more you put into a savings account, the more interest you’ll earn. There are so many account options out there each with its own separate interest rates and conditions (some may have limited access, preventing you from dipping into them, whilst others may require you to contribute a certain amount each month to collect interest).
Try peer-to-peer lending
is another fairly risk-free form of investment that involves lending money to someone online as a loan. This loan then gets paid back with interest, allowing you to make a return in the long run. By going through an official peer-to-peer lending site, you can guarantee more security. Interest rates could be anywhere from 5 – 20%, making this a much more financially rewarding option than a savings account.
Invest in assets
It’s also possible to put your money into assets. Over time these assets may increase in value, at which point you can sell them for a higher price than you bought them and make a profit. A few examples include property, gold, old coins, and wine. In some cases, you may be able to rent out assets to make a more instant income such as renting property or renting equipment to businesses.
Try your hand at the stock market
Stocks and shares are often something seen as investments reserved solely for serious investors. It’s a lot riskier than other investment types and you generally need more money to get involved, however, the returns can be greater if speculate right. There are options out there for beginners such as financial spread betting and mutual funds which could allow you to contribute less money. You can also consider hiring a stockbroker to choose the best stocks to invest in for you.
Start trading currency
Another possible way to invest your money could be to buy and sell currency. Because currency values are always changing, it’s possible to make money by buying a foreign currency and waiting for it to increase in value before selling it for a profit. The latest trend in trading currencies is cryptocurrencies – these are often more volatile but as a result, you can make a return more quickly. Cryptocurrencies also come with a smaller minimum investment – if you don’t want to risk losing too much money this could an investment option worth considering.