There are many different ways to make money in this world, but there is nothing quite so thrilling – or interesting – as investments. At least that’s how many people feel, and it makes sense; by researching and studying so that you have a deep understanding of how investing works and of which investments to buy, you can see a good return on your money for relatively little effort.
That’s not to say investing is easy or can be done on a whim. There is a lot to learn and a lot to consider, and it’s best to get help from experts if this is something you are interested in doing. However, once you do know how to invest, it can be exciting, fun, and – importantly – lucrative.
Knowing exactly what kinds of investments to buy is the key (as well as knowing when to sell them, of course). There are various options open to you, and knowing what’s best for you can be difficult. Read on to find some of the most useful investments you can buy, as this will give you an idea of what to do next.
Invest In Yourself
As we’ve said, there are many different types of investment, and investing in yourself is one that should be at the top of your agenda. When you do this, perhaps by going back to school to obtain a new degree so you can switch careers or an additional qualification such as an MA education online so you can get further ahead in what you’re doing now, you will get a return on that investment.
The more education you have, the more money you can earn, so even if you need to pay for your new degree, with the job you can get from it, you should be able to still make a ‘profit’ in life. Plus, learning is good for your health, so even if you don’t want a new job or don’t choose to go for a promotion, for example, you’ll still be investing in yourself because you’ll be keeping your brain active and taking care of your health in this regard.
Interest Paying Bonds
When you are a bondholder, your task will be to lend money to an insurer. The money will come with a specific return attached to it that will be realized after a certain amount of time has passed. Depending on the type of bond you have, it might earn interest annually, six-monthly, or even after just a couple of months, so it’s good to know what you have and how to use it in the right way.
When it comes to buying bonds, you’ll have two options. The first is to buy from another insurer; this is the cheapest option. Otherwise, you can buy from what is known as the ‘secondary market’. The price here can be higher since the ‘middleman’ will want to make some profit on the sale.
What you need to be looking out for is the creditworthiness of whoever you are buying from, as well as how long it will take for the bond to mature (you can’t make money until it does). Remember, when the bond takes a long time to mature, there is a chance that the interest rate will change more, and this can mean you’ll lose your money.
Stocks
Stocks are perhaps the first thing that most people will think of when it comes to an investment, even if they don’t entirely know what they are or why they might want to buy some.
Essentially, stocks are a way to represent ownership of a small portion of an organization. As the business grows and makes more money, the cost of those stocks will increase so that, at a chosen point in the future, you can sell them and the difference between what you bought them for and what you sold them for is your profit. In some cases, if you wait long enough and sell at the right time, you can make a lot of money.
However, when you buy stocks, there is no guarantee that a profit will be forthcoming. In fact, if a business starts to lose money, your stocks will be worth much less than when you bought them, and although you would be able to sell them, you would lose your money in the process. As with many investments, stocks are a long-term idea and not ideal for someone who wants to make money quickly.
Target Date Funds
Not everyone wants to manage a portfolio when it comes to investing in something, but they still want to find a way to potentially make some extra money. This is when target-date funds could be the answer.
With these investments, as time goes on, they become safer, giving you much more chance of making a good profit the longer you leave them. Therefore, if you’re looking for a way to save for your retirement, having target-date funds means you can do just that. You buy them early and then don’t have to think about them at all until you’re ready to retire, by which time they will be more secure and allow you to live more comfortably. However, bear in mind that if you try to sell these funds before they are mature, you won’t be guaranteed any kind of return. Your 401(k) is an example of a target-date fund.
Start A Side Hustle
Starting a side hustle might not be the first thing that comes to mind when you’re considering the right kind of investment for you, but that doesn’t mean it isn’t one. After all, you’ll be putting money into this new small business, and you’ll be taking the profit out of it, or at least that’s the idea. If this is something you can do without it having any detrimental effect on your career or personal life, or it’s something you can see would be good for your future, then it would certainly be worth at least considering.
There are many advantages to starting a side business, including that you won’t have to worry about making money initially since you’ll still have your original career to pay the bills. Plus, you won’t need to invest a lot of money to get things started, although the exact amount will depend on what you are doing.
