If you have a large (or small) sum of money that you want to use to make even more money, there are plenty of different ways to do this. There are a wide variety of investment methods, and many people have seen their money double, triple and even multiply by ten simply by investing in the right place. The trouble with investment is that it’s always going to be a bit risky if you want to make a lot of money from your existing cash. If you’re not sure of all the possibilities when it comes to investment, here are just a few of the options that you could consider.
- Savings accounts
The least risky way to invest your money is by putting it in a savings account. Unless you manage to find an account that offers a huge interest rate, you won’t really make much money off of your savings. Most savings accounts offer a 1% interest rate, or 2% if you’re lucky, so calculate how much money you’ll earn from your cash and you’ll discover that it’s not much. However, if you’re not too bothered about earning a lot of money and you want a safe place to put your earnings and let it grow slightly, this is a great option. In order to find the best interest rates, shop around and research different banks in your country. You can also have a look at different bank accounts – some of them offer higher interest rates but won’t let you withdraw your money for a certain time period without incurring a penalty charge. These accounts are very good if you don’t want to touch your money for a couple of years, since you’ll earn more of it without being affected.
Property can be quite a risky thing to invest in, especially if you lack experience in this field. However, the good thing about property is that you can always rent it out even if you don’t seem to be able to sell it on the current market for a profit. You can buy a property and then decide later what you want to do with it. Look at the current trends in house prices, and speak to an expert who will be able to tell you whether it’s a good time to buy or not. Always buy when house prices are quite low, and then keep hold of the property until the prices increase again. While you’re waiting for the prices to increase, you can either carry out some work on the home and renovate the property so you’ll get even more for it, or simply rent it out as student apartments or a family home. Having a short-term lease for whoever rents the property means that you don’t have to wait around too long if you decide you want to sell it at any point during the tenancy. You can always hire a property management company who can manage your property and sort out any tenancy agreements for you.
If you choose to invest your money in a business, it should be one that you truly believe in. Investing your money in a business just for the sake of it could lead you to lose a lot of money in the future. If you put yourself out as an investor, many start-up businesses and small businesses trying to grow will contact you for financial support. You should never invest in a business because you just want to help them or if you don’t think it could go far. Remember that this is your money and you have to be careful with it and think carefully about what you do with it. Don’t invest in a friend’s business either just because they’re a friend and you believe you should help them out. Always ask for statistics regarding the business, such as how many customers they have, what their finances and cash flow forecast looks like for the next 2-3 years and also what their marketing strategies are. Try to get the best deal you can for your money e.g. the largest percentage of the business possible, since this will ensure that you can the maximum amount of profit that you can