By EWN • 15 November 2021 • 15:21
Are you looking to invest wisely to make some money? Here are some great investment ideas and basics to help you to achieve good returns.
Put Your Cash In The Bank
By depositing your cash into the bank, you’ll be able to keep track of it all. However, this isn’t a great idea from an investment perspective since banks usually offer all-time low rates. If you didn’t already know, increased interest rates don’t come that easy when compared to the rates of inflation. In essence, the money you deposit will lose instead of gain additional value.
So, if you’re not interested in taking unnecessary risks then a long-term plan is more essential. When you put your cash into a savings account, you’ll be able to generate some additional money with the interest. If it’s fixed for five or even three years, you’ll be able to reap the highest interest rate. However, since it’s fixed, you’ll need to keep in mind that the funds will be inaccessible for the duration.
If for some reason you need to access the money, you may lose out on the added interest if the rates continue to flourish. Remember, keeping cash under the mattress is a great way to lose out on the investment of a lifetime. With the continued rise of inflation, you’ll lose more than you’ll ever gain with mattress savings and you run the risk of being burgled.
Invest In Antiques, Art, Wine And Other Collectibles
Connoisseurs in the collecting industry usually find great deals at exceptional prices. This makes it easier for them to invest at an affordable rate while learning along the way. However, the path to easy riches is never an easy one.
When you invest in collectibles, you’ll need to prepare yourself for the long haul. This just simply means that the initial value wouldn’t increase in an instant. However, an instant income from your collection mostly depends on whether or not someone is paying you a handsome price for your item.
Additionally, some items come and go so easily and what is desired today might not be desired in a couple of years or even just one year away. Hence, you’ll need to educate yourself on the items before you get taken for a long ride. Selling or even buying collections and pieces online is much easier and cheaper. The online world provides an excellent opportunity for you to reach all corners of the globe.
One of the most well-known strategies for doing this is by looking at how many buyers are interested. However, you’ll also need to keep an eye on how much demand there is for certain items. A great way to do this is by using a club or checking websites like eBay. If you’re in for the profits, you’ll need to consciously separate your feelings from the items that you purchase.
Put Your Money Into Property
One of the greatest forms of investment is buying a home. If you didn’t already know, property value tends to rise faster than the rates of inflation. The average rental price for homes and apartments rises each year and people will always need a safe space to live.
By hopping onto the property ladder, you’ll set yourself in a position to climb very easily. With improved and increased incomes, you’ll be able to make it faster than you had originally thought. Being an investor also allows you to generate an income while increasing the value of your space.
However, the greatest disadvantage of this is that you’ll need to spend large sums of cash with every investment. For most, this is quite a time-consuming effort and it becomes hard to keep track of everything. Investigate bridge lending as a way to fund your property investment. Remember, you’ll need to set aside some extra money for maintenance.
Stocks, Shares, And Equities
If you’ve ever heard the term equities, shares, or stocks, they all mean the same thing even though they have a different name. Within the UK, they are referred to as shares while in the United States they’re called stocks. Stocks or shares represent stakes in companies. In essence, this gives buyers voting rights and a share in the company’s ownership. This usually means that with each share they get a vote. Research good companies to invest in, read this Allfunds analysis.
In some instances, shareholders will get a payout from any profits generated known as dividends. However, this is done at least twice a year for some companies and up to four times each year in larger companies. Just like property investment, shares create the opportunity for an investment to grow while generating an income.
When the shares of a growing company increase, the value also increases. This then generates higher dividends. However, in the case of equities, you’ll be able to invest much smaller sums and they are more economical to hold for the long haul.
It should be noted that if you’re working with a smaller sum of money, you can put them into an account with a unit trust. These entities use your case along with that of others and invest for you. The best part is that you get an account manager who does all of the work for you.
There are so many options for online investments and many can be very lucrative if you know what you’re doing.
Websites can offer some great returns if you can invest and know what you’re doing or find a team that does. The likes of CBD products can offer 50% profit on sales as can other niches. All you need to do is create a website and a marketing plan to push the items. Affiliate sites can also be a great idea and commissions can be upwards of 10%. Sites can then be flipped for 30-50x the monthly revenues.
Look Into Bonds
Companies and governments around the globe borrow money and issue IOUs. When it comes to those issued under the UK government, they offer gilts. These as simply certificates with golden leaves on the edges that give investors a better idea of how safe their investments were.
However, investors were also given the opportunity to purchase gilts through registered stockbrokers. These usually tend to guarantee an investor that the initial rates would increase. On the redeemable date, the borrower would usually pay the par value or full price.
Bonds tend to yield a figure that indicates the risk attached to the investment. When debts are safer, they tend to yield lower interest rates. Those issued under the government are termed sovereign debts and are classed as being safer than a non-governmental entity. This just simply means that the government is less likely to go bust when compared to struggling companies.
With bonds, you’ll be able to sell at any moment. However, some complications still arise. If you bought the bond at a certain price, they will usually sell or trade at market value. When the prices rise with low rates, you’ll receive a reduced rate. Hence, when the rates increase, the market value decreases.
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