We all want to ensure some security for the future, and with a whole different series of investment methods, it is sometimes difficult to decide which forms of saving are the best for your needs. Let's look at a few different ways of investing your money and see what the advantages of each tend to be.
Traditional Savings Accounts
It's the obvious choice that most of us consider with savings as we were taught as children to stick some money away into a savings account for a rainy day, so this could be the default option for many of us. Unfortunately, banks don't generally give the same amount of generosity that they used to on their savings accounts. Still, if you search with help from online search engines, you can get a better rate than money in your current account. Through this search, I could earn 2.53% interest compared to less than the 1% my current account offers.
Invest In Small Businesses
Another avenue of investment is to lend money to small businesses or even buy shares in them. One easy way of doing this is through peer-to-peer lending organizations such as Funding Circle, where you invest savings, which are then lent to various small businesses. Depending on the level of risk you're willing to accept, you can earn up to 6.5% in interest. Suppose you decide to invest directly into a business by buying shares. In that case, you should research the industry, read the business plan, and look into the company directors, as although there is the possibility of much higher returns, if you make the wrong investment, you could lose it all.
Put It Into Property Development
In some ways, the property can always be considered a safe bet, you hear people say, but it's not without risk, and property development takes a lot of planning and research to ensure you get the costs correct. But I've found that many have seen good returns in property development in up-and-coming areas, so if you can get just ahead of the trends, you can capitalize very quickly if you find the right plot and get the construction at a reasonable rate and ensure the job doesn't run over too much then you could have a reasonably sound investment there.
The Stock Market
Investing in the market is another way of securing a return on your money, but much like investing in shares in a small business, there is a risk/reward balance here. Investing in shares can be risky or safe depending on your approach; finding a good, reputable stock broker to advise you on the best strategy is best.
