Are you looking to do something with your spare cash? If the answer is yes, then you’ve come to the right place! It’s a vital human skill that we can efficiently manage our finances. Saving money is essential for long-term security and making sure that you have enough money for emergencies. But should you keep your savings in your primary bank account? While this may be a tempting and convenient option, leaving your cash in one place can have its drawbacks. For instance, if an outage occurs, you may be unable to withdraw funds. There’s also the matter of the fact that your cash will be earning little to no interest unless it is a dedicated savings account.
So how can you make the most of the cash that you don’t need to spend? While savings accounts are viable options, they typically won’t earn you a lot. Instead, investing your money can come in handy. Investments can be high risk but offer highly profitable returns. When you invest, your spare cash will be making a difference while earning you income over the next few years. Investments are suitable for people of any age or income, but the ideal type of investment product will vary. Before proceeding with an investment, you should consider your risk level, understanding of each product, and purpose.
TK Property Group is a property investment company that specialises in buy to let property in Manchester. They have provided us with this helpful article that looks at six of the best types of investments that you can make, from stocks and shares to cryptocurrency.
Stocks
Stocks is one of the more traditional types of investment products. They can also sometimes be described as shares or both, but the two terms are interchangeable and generally mean the same. Typically, stocks can be used when discussing ownership in general, while shares can be used when talking about a specific company. Investing in stocks means that you will be buying ownership shares in a public company. As the company’s value increases, so does your portfolio. You can sell your shares at any time to cash in on the profit. Due to the stock market’s unpredictability, investing in stocks can be a volatile but thrilling experience.
Bonds
Another type of investment that you can pursue is bonds. A bond is basically a loan from you to the government or a corporation that wishes to raise money. You will receive interest on the loan during a specified timeframe. Bonds are essentially a way to earn money for fulfilling an obligation, which is lending your money.
Property
At TK Property, we know all there is about investing in property! Property can include anything from a house to land and business buildings. There are several types of property investments that you can choose. You can either buy a property and lease it out to earn rental income over time, or you can improve the property and sell it for a bigger price than you bought it. The key to making the most of property investment is discovering a property that will deliver excellent returns years after you bought the property. We specialise in off plan property which effectively means that the property is still in the planning or construction stages. With off plan investments, investors benefit from below market value prices, strong capital growth, and greater flexibility when choosing a unit.
Retirement Pensions
Everyone has to retire at some point, but unfortunately a lot of people don’t plan for their retirement until it’s too late. When you finish work for good, your income will inevitably dry up. Therefore, it’s essential that you start saving as early as possible – even the moment you become an adult! For most people, normal savings won’t be enough, especially if the cash isn’t locked away so that you’re not tempted to withdraw. There are several types of pensions that you can save into, and this can vary depending on country. Some countries will offer a compulsory government-funded pension but this will be a paltry sum compared to a private pension. By investing in a pension, you will lock away your retirement savings while enjoying tax relief and interest returns.
Gold
Did you know you can invest in gold? Gold is a type of commodity investment which means investing in raw materials or agricultural products. There are many ways in which you can invest in this commodity, including investing in an associated company, exchange-traded funds or products such as jewellery. Gold is typically a type of volatile investment in the short term but can be highly profitable if you hold on.
Cryptocurrency
Of course, we have to finish with one of the most popular types of investments that have blown up in recent years: cryptocurrency! Crypto has been making the news for all sorts of reasons, good and bad. It is a modern type of investment that has encouraged young people and new investors to get involved. In simple terms, cryptocurrency is digital currency that can either be traded or used to purchase products or services. There are several types of cryptocurrencies that you can invest in, with Bitcoin by far the most popular. As cryptocurrency is still a relatively new type of investment and is still not fully regulated around the world, prices can fluctuate quite a lot.
