Money doesn’t grow on trees, but that doesn’t mean you can’t help your funds mature. Investment is an increasingly popular and important part of modern life and could be the key to unlocking a brighter future for your family.
While a lot of people are happy to let their money sit in a bank account, many others desire a bigger return. Remember, though, your money is at stake. You should ask yourself a few questions before making any investment. If you’re still happy to go ahead, these four alternative could be right up your alley.
For UK residents, premium bonds are one of the most popular forms of investment. There are limitations. But the chance to secure huge returns without any potential loss will appeal to anyone looking to grow their money.
In return for sacrificing your modest interest, you are placed into a draw that could see you win a tax-free prize of up to £1million. Another great thing about premium bonds is that you can get your money back in just a matter of days.
Inflation could erode your savings but that’s true with letting it sit in the bank too. The only major downside is that you’re limited to £50,000 investment.
Investing in property is probably one of the safest ways to see your money swell. There will always be a need for housing and prices have increased dramatically over the past 25 years. As with any market, there are times when prices fall. But in the long-term, it’s a very sound investment to make.
There are several routes to take when using this form of investment. You could buy a ‘fixer-upper’ and renovate with a view to selling at a tidy profit.
Alternatively, you may want to travel down the buy-to-let. The requirements of a landlord are different from being a homeowner, however. Acquiring a specialist mortgage broker for HMO purchases is a must.
Trading stocks and shares is another common form of investment that could bring huge returns. However, you must be prepared to potentially take a hit.
The most frequently used market is the foreign exchange. The Forex is used by millions of traders on a daily basis and it isn’t hard to see why. The longer hours and ease of monitoring your situation make it the obvious candidate for novices and pros alike.
Nonetheless, it can be a risky business, and you may want to hire the help of a professional broker. There are no guarantees, but it could see your money grow at a much quicker rate.
Another option that appeals to many is financing a business. Most people have had dreams of owning one at some stage, but the majority don’t have the time. Taking a backseat role by funding someone else’s dream could be the next best option.
The main problem with this is that you are backing somebody else to succeed. If they fail, your money will evaporate. On the other hand, if they do make it big, you could stand to make a fortune.
If you’ve got the eye for picking out a winning candidate with an equally formidable business plan, this could be the option for you.