Investment is the act of placing money into something and hoping for a profitable return. It is a way of using your extra money to generate extra income for yourself and your family.
There are loads of different ways we can invest our money: from the most popular option of property investment down to some interesting options like truffles. There are loads of options tips online which will show you just how diverse this line of work can be, and to find out whether it is right for you we need to take a look at investing and saving too.
The chance are if you have any extra money left at the end of the money you are either going to save it in your bank or use it to invest in something. The decision on which of these is better for you comes down to a few different factors, which we will run down for you here:
Saving is likely the best option if:
You don’t want to risk losing any of your money
You need constant access to this money for emergencies at short notice
You need a guaranteed return from your money I.e. interest
Investing could be the best option if:
You want better returns on your money than the interest gives
You are prepared to risk your money for a more lucrative return
You are financially stable
You don’t need access to your money at all times
You are happy to wait longer for a bigger return
Ultimately the decision between whether you should save your money or invest it is entirely up to your individual needs. To work out which is the best option for you, you will want to start writing down some of your goals. For example this could be buying a house, buying a car, going on holiday etc… if you think that you want to do any of these things in a very short space of time, you are much better off saving your money up than investing it because the risk will be too high. However if you are happy to wait for a few years for any of your goals you can invest and end up with more money to spend on the things you want.
If you are to invest, you are better off splitting your money up between a few different investments to lower your risk and likely increase your overall income from it. If you invest in one thing and the investment falls through, you have lost all of your money and will have to start again with saving up. Investment can be an amazing way to earn some extra income for yourself and your loved ones, and many people even use it as a full time job. If you want to invest, you have the money to do it and the confidence to try, you should start small and see what happens. It could end up being the start of your new career path!