When it comes to investment, you have to be clear about what you want in terms of a return and you have to know what you are putting your money into. Many people choose to invest their cash early in life to allow them to grow their income over the years. The cost of living seems to be rising at a rapid rate, so it makes sense to want to put your money into something that will work out for you with as little risk as possible. This may seem like the impossible; an investment opportunity without risk isn’t realistic. There will always be a risk when you put your money into something that you can’t really control, it’s just a case of finding the investments with the lowest risks and going for it.
When you decide what type of return it is that you want from your investment, you will be in a better place to make a decision about your cash and where you want to put it. Lots of people choose to pour their money into new houses, or into land with companies like
sportsafieldtrophyproperties.com. There is risk when you invest in property or land, but it’s a risk that can often really pay off when you start building on your land and expanding it. Vacant land has the ability to produce you great cashflow if it’s what you want. Finding out the options if land isn’t your top priority is equally important, and when it comes to investing, there are an awful lot of options out there for you. If you’re looking for a good return, look no further; we’ve got seven of the lowest risk investment ideas for you below.
Peer-To-Peer Lending.
It’s a little-known way to invest your cash, but it’s a good, low-risk way to do it. It has always been recommended as a short-term investment, as instead of buying shares in a company that you’re familiar with, you are effectively lending your cash out to others who need it. Peer to peer lending can be risky in the sense that you are relying on someone else to pay you back, but if you screen your loan properly, you can ensure that you are lending correctly. The best way to do this is to use an online lending platform like this one. You can screen your loans correctly on a platform like that, and you are able to get quite the return for your cash.
High Interest Savings.
A completely risk-free way to invest your money is to pour it into a savings account with the highest possible interest. Just by having your cash sit in the account, you can earn interest on the deposit. The trick is to find the highest interest without any fees attached to them. You’ll be able to do some research of the best banks and their rates as well as find out how to access your cash when you do want to take it out. Savings accounts are a good place to keep your cash if you’re concerned about the risk of investment, as really, you’re only investing in yourself.
Certificates of Deposit.
These are pretty much loss-proof. They’re a deposit to the bank as equal to an investment as you can get. The bank offers you a set interest rate if you leave your cash with them for the entirety of the term of the certificate. You can lose interest by removing the money too early, so it’s best that you leave it where it is until the end of the certificate term. Always read the small print, but if you are looking for a good way to earn a little interest, then you need to consider a certificate of deposit as an option.
Dividend-Paying Stocks.
There are companies out there that will pay you dividends which aim to be higher than what you would get on an investment that is completely risk-free. The biggest advantage is that you can participate in capital gains on top of the income that you would receive in dividends. They’re less risky than other stocks, but they aren’t completely without risk. The big bonus here is that you can hold the market in scary economic times, making dividend paying stock way more attractive to you wanting to invest.
Credit Card Rewards.
If you are someone who has a credit card on the go at all times, you can use your own spending to your advantage. There are plenty of advantages to using credit cards wisely, especially since most of them have a 5% reward ceiling just for using that card. This could enable you to balance transfer and take advantage of said rewards and earning up to that 5% when you spend your cash can mean you’re basically being paid to shop. Don’t forget to pay the balance each month, though, as you don’t want to end up having to pay more than is necessary.
Pay Down Debt.
Investing in your own finances is a smart way to spend your money on investment and paying your credit cards off completely can get rid of interest charges that build. This can then have a clever knock-on effect and give you more of a chance to shift your money where you can get a return. Paying off credit cards means that you are investing in those interest charges and no longer have them hanging over your head. Ultimately, paying off debt will free up your cash and give you something extra in your bank account each month that isn’t going towards your debts.
Savings Bonds.
If you’re in the US, you’ll know that the government will be issuing savings bonds between $25 and $10,000. You can watch your savings grow with no worries about the principal, which is great if you’re a young investor.
Finding a smart place to put your money is so important if you hope to have a secure nest egg later in life. Invest with low risks and watch your cash grow.
