We all want our money to work harder, pick up friends and come home with even more. In reality, it is a mix of skill and a calculated gamble. There are so many different investments that you can make, and they suit a range of different risk appetites.
Even the word investment can be intimidating to people. There is a notion that only the wealthiest people can make worthwhile investments.
With a little research, you can often work out which investments make the most sense to you and how you can maximize your cash.
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Are there risks involved with investments?
Yes. The short answer is yes; there are risks involved with investments. These risks can often be put down to taking too big of a gamble or not enough research into the investment you want to make.
You will find an array of rags to riches and riches to rags stories that have a lot to do with investing. Not only that, but you will also hear about investors that have scammed millions from people.
Like everything, you can’t remove all risks, but you can take steps to minimize what you stand to lose.
Kevin Durant has a diverse portfolio and was one of the world’s richest athletes in 2020, investing in Postmates, Pieology, Yoshi, JetSmarter, and even a stock trading platform.
What can I invest in?
In the early moments, you want to keep your investments as simple as possible. This will give you time to understand all of the different markets and learn more about how you can improve your portfolio.
In the case of investing, it is important to create a financial investment plan and stick to it. This will be your blueprint for investing and will help you avoid some of the more common issues when investing.
Where can I invest?
Below you will find a range of the options you have for investing; although this list is not exhaustive, it will give some insight into the sheer amount of options you have.
Real Estate
One of the most popular choices when it comes to investing is in real estate. After all, people will always need somewhere to live, and house prices tend to rise steadily enough to make a good profit or a long-term income.
Once you make the decision to invest in real estate, you will need to narrow down how you want your real estate portfolio to look. Most people start by investing in a single property, then after a while, using the income to cover the mortgage on another property, and so on.
The cash flow from real estate tends to increase year on year, and by the time you are into retirement age and the mortgage is paid, you can see a significant income.
Crowdfunding Platforms
Crowdfunding platforms aren’t just for those who have a few thousands; you can see a small return on as little and $10/£10. Crowdfunding gives smaller businesses access to the finances they need to grow.
Becoming an investor will give you a range of tax perks, and sometimes more with the company you lend the money to.
On many of these platforms, you are in charge of your own account, and you need to understand the risks involved before investing any money.
CircleUp – Most of the investment opportunities here are customer-facing businesses with at least 1 million in revenue. Some companies offer samples; others offer discounts and more. You have access to company profiles, partners, revenue profiles, and more.
- Seedrs – A range of companies from fintech to food. Many are UK and EU based. You are able to invest small amounts on Seedrs; you have access to updates, share certificates, and more. It is a very simple process, and there are new bids every week.
- EarlyShares – this platform is dedicated to commercial real estate crowdfunding opportunities. If you have a lump sum of cash to play with, then EarlyShares can be very lucrative.
Remember, when making investments in crowdfunding, there is a chance that you lose your investment or that the company doesn’t manage to achieve the initial goals.
How can I invest without being hands-on?
If you want to learn about investing but have some help, then there is the option of using Robo-investing. You set up your robo-investor with some strict parameters, and it will invest your money based on those parameters. It will also take into account your appetite for risk and your financial goals.
You can go completely manual if you choose to, but you need to take emotion out of your investments and adhere to your long term plan.