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Today we have a guest post from Sarah Smith talking about investment ideas for dummies. Some of these investment ideas may be bold and big, but they are all tried and true investments. You just have to remember to do your due diligence before investing and make sure you understand what you are buying before you buy it. Without further ado, here is Sarah…
I remember the time when our parents hated investing in anything. They felt like keeping their cash in a bank was the best thing that they could do with their money. But with the change in time, the mentality is changing too.
As soon as I started getting paid, the first thought that occurred to me was how to double it up and investment is the only answer to it. Check out these good investment reviews that may help you.
Everybody is now looking for somewhere reliable to invest. Investing is the change we require for changing our financial status because only one stream of income is not enough to get you and your family to the top.
Now, multiple income streams make life luxurious, but analysts claim that in the coming time, having an investment would be necessary for surviving because of the market dynamics.
If you have been looking everywhere for some advice or guidance but were not satisfied than here are some investment ideas for you if you are a beginner and need to know where to start.
- How to invest in index funds: A Beginner’s Guide
- How Much Investment Risk Should You Take?
- The Best Investment Allocation
1. Real Estate
If you have some big bucks and are looking for a good investment, go for real estate, but in a place, you understand and can work with. Since in the business, I have rarely seen any property losing its worth, there is only profit in this market but if handled with care.
Also, before buying a place look out for development that may happen and the necessities that one needs to live in an area like, schools, hospitals, parks and so on. With these things around, it is almost impossible for your property value to go down.
2. Peer-to-Peer Lending
Peer-to-peer lending is about giving some money to another person for an agreed term with an agreed interest rate. The lender and the borrow must belong to the same service, and all of this is done online.
With time the sites that facilitate peer-to-peer lending are increasing because of the increase in demand. But make sure to contact a reliable site and then do the transaction in your best interest.
If you are new to this idea and do not know much about it, then ask someone who has experience in it or else check the mighty internet for guidance, but beware of scams.
3. Small Business Owner
We all want to be the owner of some million dollar firm or God forbid a multi-national but what we fail to understand is that to reach the sky you have to start from the ground.
Do not hurry in investing all your money or taking a loan for a big startup. Start a small scale retail shop for your own benefit. This way you will know what your target audience is and how to improve your business while you progress.
Investing as a small retailer will give a venue to learn from your mistakes on the low level before too much money is involved. If you argue that in such setups the profits are not huge than keep in mind that the losses you have to bear will also be bearable.
It may sound old fashion, but for me, it is still one of the best investment if you do not want much of a risk and do not have time to spare to give for running a business. If you are in business, then you have to be fully involved in it, otherwise, you will soon see the downfall unless of course, you set it up to run without you…
A business is like a child. To see them flourish the parent must know precisely how to take them to the next level. If you leave your child in someone else’s care you may end up being the neglected one, someone who will lose them in no time.
So, if you cannot afford to establish something and see it going in someone else’s hand just because you were not able to spend time on it then go for an investment that does not need your constant attention.
Simply buy a municipal or corporate bond and wait for your price to be announced. Even if you don’t win anything big, you always have that bond for sale at its principal amount, and if you get lucky, you will end up with a little more.
5. Mutual Funds
Mutual funds are a good option for people who want to reduce the risk factor. Investing in a pool of stocks or bonds to buy securities is always a better idea.
Pro Tip: Always know the market before involving yourself in it no matter what. Sometimes, things look good, and everyone is doing it, so you follow the herd, but if you do not know what you are buying, chances are you will lose more money than you gain.
Investment is the new trend of the time and for a good reason. Anyone with a small amount of money in hand is eager to double it up. What our elders call it is the lust for money but what I feel is that the investment is like a security blanket.
Almost every one of us is interested in investing but needs some guidance to start because nobody wants to lose something they received from their blood, sweat, and tears.
To save yourself from later trouble, investigate first. Meet people who have experience. Investigate different markets before investing into one.
Once you are done with the research, invest! And keep one thing in mind to be an entrepreneur or an investor, you have to take a risk. So do not be afraid of risk, be afraid of lack of knowledge only because you may end up with less than you started with.
Author Bio: Sarah Smith has been a personal finance author for the last five years. She is also an independent and very passionate finance and investment advisor. She regularly posts at www.personalincome.org.
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