Investing your money is a great way to earn some money on top of your annual salary and savings. Finding the right way to invest your money can take time so be sure to do plenty of research before parting with your cash. You can invest in small or large amounts of money, take a look at our guide to see which way suits you best.
What is Investing?
Investing is when you put money behind a business or product in the hope of some profitable return. There are many ways to invest your money but each way should be done with some knowledge, if done correctly it could be a great way to earn a lot of money.
Where is Best To Invest?
Real Estate
Real estate is a popular way among investors, you can achieve this in two ways, either by flipping a home or renting it out. First, you will need to identify what your short-term and long-term goals are. If you are in it for the long run then renting your property is the better option. By the time you reach retirement age, you will have hopefully paid off the mortgage and started earning from the rent. Many people do this as a plan for retirement so they still have regular income without having to work.
If you are looking for a more short-term investment then buying a run-down house to flip and resell is a great option. But before you go out and buy any old run-down house there is a lot to consider and learn. If you are a novice to flipping homes think about taking a mobile home flipping course to help you get familiar with the processes. You will need to earn about the area your buying in, the current housing market, and also how much it will cost to buy, do up and sell.
Stocks & Shares
When you think of investing your first thought might be to head straight on over to the stock market and invest there. If you decide that this is the route you would like to take then you will need to spend a lot of time researching businesses, products, terminology and how the stock market works overall. It’s not just as simple and putting some money in and leaving it, you will need to keep an eye on the FTSE to see how your investments are doing and have the knowledge of when to invest more and when to pull your money out. If you want an investment that keeps you busy then stocks and shares are for you.
Retirement Funds
When thinking about investing we are usually thinking about our future and what better way to secure your financial future by investing in a retirement fund. Ask your employer about their retirement fund schemes. These schemes will usually consist of you putting money aside each month and your employer matching it or contributing a percentage. You can opt how much you put in a month so only do how much you can afford, it is a great way to invest your money without having to do anything. If you find it hard to manage your money this way is great as it will take it out of your paycheck before it is transferred to your account.
Collectibles & Antiques
If you are into collecting antiques or have an attic full of old family heirlooms it might be time to have a clear out or put your skills to good use. Collecting items that will become more valuable as time passes is a great way to make money through a hobby. If you have a keen eye for seeing what items are valuable then this could be a fun investment opportunity for you. Visit vintage fairs, charity shops and antique shops to try to grab yourself a bargain.
New Business
If you have a new business idea then it could be worth investing your money into your new venture. You have got to be confident when investing in yourself, if you believe your business idea can take off then why not take the plunge. Starting your own business can be challenging and risky so ensure you do plenty of research and seek professional advice if you are still unsure. When starting your business take baby steps, you might feel like you want to quit your job and dive straight in, however, we recommend you do not do this. This more realistically and appreciate that it takes time to build a business. Once you get enough money coming in then you can comfortably quit your job and dive in. If you are serious about starting your own business check out our tips on Things You Must Know Before Starting a Business.
Savings Accounts
If you have a lot of savings and are unsure what to do with it, simply putting it into a savings account can make you money. The interest on savings account against a basic current account is significantly more. Search across a number of banks to see which ones offer the best rates. There are some comparison websites out there to help you with this. Investing your money this way will almost guarantee you will gain money and you don’t have the risk of losing it.
Robo Advisors
If you like the idea of investing in stocks and shares but don’t feel confident enough then turn your attention to Robo Advisors, there are a few companies out there that specialize in this type of investing. Robo Advisors take your money and automatically invest it for you, you set your investing limit and preferences into what type of investing you want and then you sit back and let them do the rest for you. The only catch with investing in stocks and shares this way is that you have little control of who you invest in and often have to pay a fee for the robots to invest for you.