Everyone wants to boost their savings and have more money in the bank – one of the quickest ways you can do this is through investment.
But if you can’t stand the idea of losing your money, then you might be put off from investing. Especially, when you hear horror stories of how people have lost everything through a small investment mistake. However, you also realize that storing your money safely in the bank isn’t doing you any good, as all it’s doing is sitting there.
So what is the answer? Should you risk it all and invest or should you leave your money safely tucked away in the bank? Well, that depends on whether you want to grow your savings – if you want to grow what you have, then you need to take a risk and invest.
If you choose to take the risk and invest, you will be pleased to know that there are many options for low-risk investment. So your money should be pretty safe.
To help you be investment smart and invest your money safely, we have put together a simple guide below:
Make diverse investments
Instead of putting all your money in one pot, spread out your savings and use them to make a range of different investments. This is known as diversification.
By spreading your money out over various investments, you can reduce the risk of losing everything. So if one investment, such as a stock investment goes down and loses you money, you still have your other investments to count on.
Invest in tax lien
One of the safest investment options is investing in tax lien. Although, you won’t make money as quickly as you could by investing in stock, investing in a tax lien is pretty much risk-free. Making it ideal for anyone wanting to invest without putting their savings at risk.
What is tax lien? If a property owner fails to pay their taxes and interest, the property can then have a tax lien placed on it by the local council. The tax lien is then put up for sale. As an investor, you can then buy it, and if the property owner fails to catch up on their tax and interest payments, you can foreclose on the property.
For some great tax lien investing advice you can have a look online or can speak to a tax lien investor about the risk. With tax lien investment, you will either get your investment back, plus interest. Or, you can buy the property for the cost of the unpaid taxes and fees.
Invest a small amount in stocks
Most people, even those concerned about risk, are drawn to stocks. This is because stocks offer the highest investment rate returns, allowing you to double or even triple your money in a short period.
But, as stocks can go up and down at any time, they are one of the riskiest investments you can make. However, as they offer the highest investment return rate, they can be worth the risk. The best way to manage the risk associated with stocks is only to invest a small amount of money, that way if you do lose it all; you still have more money left.
In terms of stocks, time is your best friend
In terms of investing, time is your best friend. A large part of making your money grow is down to time. And, the longer period you have to allow your investment to grow, the less problem a drop in the market is, as you have enough time to recover.