What Are Ways To Invest Your Money?

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25 Nov. 2018.  If you have a substantial amount of money sitting in the bank and earning very little interest, it might be worth considering different investment options. If you’re new to investing, you may find the whole thing a little daunting, so here are some of the best ways to invest your money and hopefully make a tidy bit of profit in the process.

The stock market

All investment comes with its risks. The stock market seems to be where most beginners will start. You buy shares of a company with the aim of making a profit, should they be successful. Investing in the stock market probably has the biggest risk, where you could lose all the money you put in. Most companies can’t guarantee growth but they can certainly make predictions, so take this with a pinch of salt. The greater return that you want, the bigger the risk so start off small and never invest too much that you can’t afford.

Real estate

Investing in real estate can be a lucrative business opportunity, and you can build up a portfolio of properties that can end up making you a nice tidy profit or passive income. When investing money in property, you want to consider the budget you have, the location of where you want to buy and know the legal obligations of owning and renting out property. There can be many challenges that come with real estate; just read these top 4 real estate investment challenges to grasp an idea of what you’re potentially getting yourself into.

Owning property and investing in it, requires a lot of knowledge of the market, so do your research extensively before jumping in head first.

Credit card rewards

If you want a more low-level risk for investing, then you might want to consider taking advantage of credit card rewards. You typically earn points that can translate into real money and the rewards they offer can be great. For example, there’s the Chase Freedom that offers $150 of free money just for spending $500 within 90 days. That’s soon achievable if you put your rent or household bills on it.

Savings bonds

Savings Bonds are also a low-risk investment because they’re backed by the United States Federal government – that makes it a fairly stable investment. There are two types of bonds, the Series I and Series EE. Here’s a brief breakdown of the two:

• Series I – This bond consists of a fixed interest rate return and an inflation-linked return, where the inflation can determine whether the total return on your money goes up or down.
• Series EE – This bond is a fixed interest rate return which doesn’t change and is automatically added at the end of the month.

Investing your money is much more beneficial and exciting than just leaving it to sit in your bank account, so if you fancy a little or big risk, investing might be a great way of making the most of your hard-earned cash.

Editor’s note: The opinions in this post are the contributor’s and not those of Science & Enterprise.

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