Investing your money can be a great way to earn returns and build up a fund for your retirement. In fact, many people invest to be able to retire early and feel financially independent, meaning they can quit their full-time job and concentrate on hobbies or their investments. Depending on your financial status right now, you may have a significant amount you can invest, or you could be starting off with a limited budget. Whatever your situation is, there is most likely an investment type you can try.
Before investing, remember that every investment does come with risks. While there are some investments that pose fewer risks than others, it’s always best to assess your situation to see what you can afford before going ahead with an investment.
Interested in finding out three of the best ways to invest your money? Below we have put together this list, together with some tips to get your investment journey started. We wish you luck on your new venture…
- Property Investment
Perhaps considered the most reliable and safe investment option, property investment is an easy choice for many investors. Those of you who want a long-term investment that can often make you returns from day one will want to look into property. Compared to other investments, property is stable since house prices do fluctuate but are on an upwards trend. However, with investing in property you must have a significant amount of capital to get started.
Success is pretty simple when it comes to property investment. Anyone looking at investing in property will want to consider these things;
- The location of the property (as this can determine your returns). If you’re wanting a buy to let property, consider the rental yields within certain areas. RWinvest has an informative guide on the best places to invest in the UK, which may help you decide according to multiple factors. The UK has an average rental yield of around 4%, so anything above this is a great deal.
- The property market (as there will be a clear trend according to the market). Throughout history, the property market has changed and altered. Some say the best time to invest is when others are afraid to, but assessing the property market as a whole will allow you to decide whether it’s the right thing for you.
- Stocks and Shares
Something slightly more publicly accessible is the stocks and shares market, and purchasing stocks and shares as an investment option. There is no upfront fee required for this, but it does come with a lot more risks. During uncertain times, the stock market will lose a large amount of money as stocks plummet, and this may mean that stocks you own could be worth one sum one day, and far less the next. Stocks are seen as the riskiest of investments, so it’s worth doing your research before going any further.
However, if you want to get started with stocks and shares investment and learn more as a beginner, there are tons of mobile apps you can use. The Big Investment blog details a range of investment and savings apps for anyone wanting to get started.
A less popular type of investment is a bond investment. If you’re able to build up a portfolio of bonds with good yields, then it’s considered a good investment. However, when compared to both property and stocks/shares, they don’t provide as much in terms of return. Many investors suggest mixing bonds with stocks and having a variety of investments in order to succeed.
There are two main ways you can make money from bonds; you can either hold them until their maturity date and collect interest payments on them. Or, you can profit from bonds by selling them at a price that’s higher than what you paid initially.