Investing Basics: Where Can You Start?

Whether we practice it not, we all know that when it comes to money, it’s best to have a savings fund for a rainy day. Rainy days and surprises do not alert us and when we are not ready, the repercussions can be devastating. When the unexpected happens, having enough resources can come in handy.

While unfortunately, many people barely make ends meet every month, those that are diligent with their finances figure out a way to save consistently. Some do more than minimums and consequently have some extra funds in addition to the acceptable. If you have extra savings lying around in a savings account in cash, it may be worth maximizing your return by considering some investments? Truly, while we are educated to think that a retirement income will sustain us, most successful retirees will swear by outside investments they’ve made along their employee sponsored plans.

Here are a few ways to start your journey today.

Stocks & Shares

Investing in stocks and shares can be tricky, especially if you don’t have any idea on how it all works. With this type of investment, it’s best to do some research on how to invest in stocks and shares. You may wish to invest in the stock market which is buying a stock of a company, and when they profit, you may profit from it. Unless you study the stock market in higher education, there are absolutely no education provided in our public schools. I highly recommend picking up a copy of Unshakeable. As I am reading it myself the moment, I believe strongly that anyone will benefit tremendously from Tony Robbins’ expertise and research.

In addition to stocks, there is also the option of investing in bonds or in mutual funds. Simply put, bonds are loans but contrary to you getting a loan at the bank, you stand on the other side, lending your money to companies or public institutions. In return, you make profit from the interest charged to the loan. A mutual fund is a company that compiles money from several investors and then invests those funds into securities such as stocks, bonds and short-term debt.

Real Estate

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When some investors have a considerable amount to ‘play’ with, property is one of the main investment options that many choose to venture toward. Compared to investing in stocks, real estate investing requires a higher initial investment cost but building up a property portfolio can help save towards your retirement. As with all investments, there’s always a risk, and the property market tends to fluctuate. However, it’s certainly worth considering if you have the means to do so. On a higher level, some investors with very large sum of money will invest into community developments such as Normanton Park Condominium as an example or commercial buildings.

Savings Accounts

Savings accounts are least risky of ways of investing your money as you are essentially keeping your money in an account that just accrues interest over time. However, it is truly a risk as inflation or other factors out of your control devalue your hard-earned cash. Plus, the interest rates for these savings accounts aren’t usually very high, and unless you have a large sum of money, the interested accrued may not even be that noticeable. Nonetheless, saving money is better than spending it all and using this way allows you to stockpile a risk-free sum of cash to use in other investment opportunities.

Commodity Investing

Commodity investing relates to investments made in materials that are either consumed or used for the fabrication of other products. There is profit to be made in physical commodities such as oil and gas, gold or platinum. If you have a keen eye for it, you might be able to earn a good profit off buying and selling these commodities. However, with these items, they often increase in value over time, so it’s a long-term investment as opposed to making a quick profit. It’s always worth trying if you have a passion for it, you may strike lucky and find something you buy for cheap that turns a huge profit.

Investing your money isn’t for everyone but it’s always worth exploring your options. So, look at the ways to invest your money and if one of these is right for you, then why not give it a go?

 

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