Tips for Investing Money if You’re Worried About Risk

November 22, 2014 Updated: April 23, 2016

Some people like to gamble with their money, but other people aren’t quite so comfortable with the idea of losing their money if something goes wrong. However, the trouble is that to just put your money in a safe place such as a savings account (or under the bed!) won’t really earn you much money, and in the current economy, you’re doing well if you can get 1% interest, and it’s considered quite amazing to get 2% interest or more. Here are some tips for investing your money if you’re worried about risking your money through investment.


  1. Think about why you’re worried

Sometimes, people are unsure why they’re actually worried about risking their money. All they know is that they are indeed worried. However, it might be good to think about why you’re worried. Do you truly believe you’d lose money or are you just trying to be on the safe side? Would you be able to cope with losing some money? You might want to try investing a little bit just to see how it’s gets on. If you feel that you need to invest your money in order to meet the financial goals that you have set for yourself, it might be a good time to start thinking about taking that leap of faith and just going for it.


  1. Savings accounts aren’t the safest option either!

While you might think your savings account is the best and most safe place for your money to be right now, that’s probably not true. This is because the rate of inflation generally increases now more than the rate of interest on your savings account. This means that your buying power is constantly being reduced, so you don’t actually have as much money saved as you might think. A tricky concept, but definitely a very real one which you should consider.


  1. There are several ways to invest money

Investing your money doesn’t always mean buying stocks and shares. One of the safest ways to invest your money is by investing it in a business which you strongly believe in. This could be a family business or one which you have come across which needs some financial help to get going. You don’t have to invest all of your savings, but you can buy a percentage of the company for a set amount and receive some of the profits over the years. If the company carries on, you could end up getting money from it for the rest of your life, and if it becomes very successful, you can sit back and enjoy the rewards of your investment! People are much more comfortable investing money in businesses which they personally feel have a lot of potential, so don’t rush if choosing a business to invest in.

You can also consider other options such as certificates of deposit. There are many different types of these accounts, and you can compare CD rates to make sure you’re investing your money in the best account for you. The good thing about certificates of deposit is that you can choose which one you’d like based on how much risk is involved and the type of interest rate that you’d like.


  1. Don’t get too worried about your investments

If you start investing, start off by investing just a little bit of money. This will hopefully build your confidence with investing, and if you have made any mistakes, they won’t hit you too hard. You can also learn how to invest wisely by trying out different methods and routes. When you do invest, don’t get too worried about your investments. Don’t watch them too closely either, since this can just cause stress and even more worry! For example, if you’ve invested in a business, don’t check each month to see how much profits they’ve made and if profits are higher than the previous month. You will only start to worry about any money they are losing or if the trend for this year is downwards rather than upwards. The best thing to do is sit back and relax – if you make plenty of money, that’s great. If not, it’s not the end of the world and hopefully you’ll have plenty more opportunities to invest your money.