When looking after our money we often question if there is a way that we can increase our savings. Typically people continue to build on their savings and move their accounts to stay with the best rates, look for savings accounts deals and government-backed schemes that give you a guaranteed return on your deposits. Unfortunately saving alone doesn’t lead to a significant increase in what you’re committing to the pot, there is a way that you achieve this though and that’s by investing your money into something like property or stocks.
It can be a little daunting and yes, at time risky to invest your money but the potential earning from your investment can outweigh this, were going to have a look at how you can decide what you should be investing in:
Look At Your Golas And Needs
When making any investment you need to think about what you want to get from your investments. Knowing your need, goals, yourself and your appetite for risk is a good starting point. Do some research into the invests that are available, weigh out the risks and then decide how much you are willing to lose if it doesn’t go to plan. You can always start small and build on it later.
How Long Can You Invest?
With any investment you need to think about when you’re likely to want your money back, time frames can vary for the different goals that you have and that is going to affect the type of invest and risk that you’re able to take on. For example if you’re saving for a house deposit in five years time you will want to make sure you can get your invest and any return back in that time, if you’re looking to contribute to your pension in twenty years time you can afford to make longer-term investments.
Make A Plan And Monitor
You need to have a certain level of protection when making any investment. This means that you need to create a well thought out plan and then monitor it. Using a custom reporting solution can help you to do this. Make sure you check things like the FCA register and warning list. You can always seek impartial advice before making an investment too. A good place to start is with small risk investments such as a Cash ISA and then move on to other areas. You should ideally only move on to potentially high-risk investments once you have a solid base of low and medium risk.
Investments You Should Avoid
Avoid high-risk products unless you are confident that you fully understand their specific risks and are happy to take them on. You should only be considering higher-risk products once you’ve built up money in low and medium-risk investments. Some investments are nest being avoided completely, so make sure you do your own research first and only make an investment if you’re happy to lose the money if it doesn’t work.
Being clever with your investments can lead to a good return, some people make a living from investing but it is definitely a risky business to be in. Do you have any other pieces of advice that will help people to decide what to invest in?