Where do I start with investment?
Thinking of investing some of your extra money that you’re not using, but not sure where to start? There are a range of different investment types that you can try, each with its own pros and cons, and while the benefits might not appear overnight, it can be a great way to steadily improve your income over time, allowing you to focus on other things such as family and lifestyle.
If you’re thinking about some of the different ways to invest your money, here are a couple of pointers on where to start with investment.
Find the right investment method for you
The best place to begin would be to look at some of the different available investment options. Individual shares or more diverse investment funds prove popular, and bonds can give a predictable return when matured.
Property investment is a good way of making an additional income, through both continual returns from any potential tenants, and the possibility of your initial purchase price to grow through capital appreciation. To achieve lucrative returns, analysing the market and investing in the right area is imperative. Northern areas such as Liverpool and Manchester are offering much higher rental yields than London, for example, which sits at a weak 3.7%.
Many are looking towards off-plan investment (an investment type where construction on the property has not yet been completed), as it gives early-bird and often cheaper access to a city or area high in demand. RW Invest offers peace-of-mind on investments of this type by using modern technologies such as Virtual Reality, helping buyers to better visualise their purchase.
For something worry-free and straightforward, why not put some money away in a savings account? The money might not grow to give you a large reward down the line, but if you put a slight amount aside each month, it can be a good way of saving for a large purchase down the line, or a trust fund for a child.
Some even invest in other items such as gold, art, or even collectables such as vintage toys and games. If you have a niche hobby and you know what things are worth, flipping items that you find for sale on online auction sites can be a great way of earning a little extra from the comfort of your own home.
Manage your money
After you’ve found the right sort of investment route you want to take, it’s important to think about how much you want to put into this project, and how much you can afford. Making sure you have enough money saved to look after your immediate priorities, such as home bills, family, and shopping etc., should always come first, as again investment is often something you can put on a slow burn in the background and not worry about too much.
Managing your money also includes being sure not to have all of your eggs in one basket. Most investment experts recommend ‘diversifying’ your projects, meaning that if one proves not to be financially viable, you can fall back on alternatives.
Remember: Many investment opportunities are beneficial in that they are relatively hands-off endeavours, but it’s crucial that your remember many are long-term, meaning you won’t necessarily be able to access money invested once pledged. If sudden expenditures such as car payments or appliance breakdowns are things you would rather be prepared for, then perhaps keep a buffer or a rainy-day fund, that isn’t tied up in an investment you can’t alter.