5 Ways to Invest Your Money When You Are Not Already an Expert

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Some time ago, thinking about money may have been related to savings, hard work, and rigid bank systems, but this is now changing as new alternatives enter the market. Today, investing isn’t necessarily a matter of having large amounts of money. Simply, you don’t need to be Jeff Bezos or Bill Gates to start multiplying your savings.

Remember, you will always have something to learn for those who have succeeded and those who have failed, indeed to have successful investments, you have to be willing to take some risks and go beyond your comfort zone. 

Let’s explore some of the promising options for beginner investors.

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1. High-yield savings accounts

Most of us started with a savings account, but now, having an online savings account or a cash management account that provides higher rates would be an eye-catching option.

The best way to understand the difference between high-yield savings accounts and a regular savings account is to imagine you have an extra $10,000. If this amount is in a standard saving account, the average return would be 0.4%, which means $40 per year.

But if you have the same amount of money in a high-yield savings account, the average percentage is at least 1%, which means you will earn $100, which could be even more, depending on the account.

If you are interested in these options, you can find good rates with the Lending Club Bank High-Yield-Savings Account, Alliant Credit Union High-Rate Savings Account, or Comenity Direct High-Yield Savings Account, just to mention a few.

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2. Government and corporate bonds

Government bonds are known as fixed-income security in the US. They represent a loan to the Federal or Municipal Government with reasonable rates and tax advantages, making them an interesting, low-risk investment option.

On the other hand, corporate bonds are similar, but in this case, the loan is to a company, which acquires the commitment to pay interest to the bond owner. Here, the risk is higher because it depends on the profitability and sustainability of that specific company.

Bonds are an excellent option to consider when you want a predictable income and avoid volatile stock holdings. If this type of investment attracts you, you can contact a brokerage company to provide you with the information and assistance you need to acquire these bonds.

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3. Individual and dividend stocks

Now, the stock market is fascinating, but it also comes with considerable risks. Depending on market variables like inflation or exchange rates, it could help you generate significant profits or losses.

Those who want to take the leap but still play it relatively safe can go for a dividend stock; the dividends companies pay to their shareholders according to their growth. Right now, the best well-known dividend stocks are those of Altria Group Inc., National Presto Industries Inc., ONEOK Inc., and Iron Mountain Inc. Still; you can always do additional research to decide which company fits your budget.

Another option is individual stocks that you can buy through an online broker to avoid the hassle of doing all the work yourself. Platforms like Etoro, Freedom finance, or Degiro will help you buy and sell stocks with the support of their knowledge for a commission.

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4. Real estate

We can’t possibly leave out one of the most traditional ways to invest your money. Real estate investment continues to be an excellent choice. Just in 2009. More than two-thirds of residential properties sold for more than 95% of the asking price

You have a few options like buying a property and receiving a regular income through rental, joining a real estate investment trust, working in big projects such as malls, hotels, or offices, or getting on real estate crowdfunding platforms.

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5. Alternative investments

Let’s say that any of the above ideas didn’t catch your attention. If you want something more innovative to invest in, exploring alternative assets such as cryptocurrencies might be interesting.

For example, Bitcoin had a 400% rise in the last six months. Something similar has happened with other cryptocurrencies because of their easy accessibility to the public, their limited supply, and because it’s a market that is just beginning.

When you invest in cryptocurrencies, you take away the intermediaries and leave the traditional ways to trade money behind. Aspects like inflation won’t be a concern because cryptocurrencies have been capped by mathematical algorithms, making them impossible to be altered due to political or government reasons.

Whatever investment option you end up going for, always try to understand the risk you choose. Do your research, learn about the pros and cons, and make wise decisions.

If you want to learn more about cryptocurrencies and how to make smart investments, click here.

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