If you feel like investing isn’t a good idea for you because you don’t know enough about it, feel that investing is unsafe or mistrust financial advisors, you’re in good company; many feel this way and it prevents them from taking advantage of investment opportunities.
However, despite the uncertainty that investing jargon might provoke in most of us, we can begin to take advantage of investment opportunities to make extra money. Keep reading to learn about investment opportunities that might be right for you.
What does it mean to invest your money?
First things first… What is investing, anyway?
The word “invest” is often used in many different contexts; we often hear people talk about investing time, energy and effort into hobbies, studies and relationships. But what does investing mean in a financial sense?
Financial investment is similar to the way that this term is used colloquially, after all, if you invest time into practicing piano or perfecting a work project, you expect to reap a benefit from this in the future, perhaps improving your talent or creating an excellent final product.
When you make a financial investment, you put money into an account, a purchase, stock, real estate, business or other investment opportunities with the intention of multiplying your initial investment and profiting off of it in the future.
Do I need to get into the stock market?
Not necessarily. While investing in the stock of an individual company on the stock market is an option, it is just one of many investment opportunities.
Read also: A simple guide to start investing in stocks
When deciding between the plethora of investment opportunities that exist in the world, it is important to make your investment decisions based upon your risk tolerance, because not all investment opportunities are created equally.
Investment opportunities
Consider some of these other options to open you up to the diversity of investment opportunities that are at your fingertips.
High yield savings accounts
This type of savings account allows you to make more in annual interest than typical savings accounts, with virtually no risk.
CDs
Certificates of deposit are sold by lending institutions, banks or other financial institutions and state that the holder of the promissory note will be paid a particular interest rate on their initial investment. CDs are very low risk and there are a number of plans available, from 6 months to 5 years.
ETFs
Exchange-Traded Funds (ETFs) are a type of investment fund which can be bought or traded like stocks.
Investment funds
Investment funds are like pizzas. An assortment of different ingredients are layered across the proverbial pizza fund like a meat lovers’ delight—cut up, and sold to individual investors as shares. The ingredients of an investment fund may include different securities like bonds, stocks and cash alternatives. This diversifies the securities investors purchase.
Equity crowdfunding businesses
Investing in businesses allows you to purchase shares of the business, much like buying stock in a company on the stock exchange. Much like a stock, you earn dividends as the business grows, thus multiplying your initial investment.
Peer to peer lending
Strategic lending to peers with good credit scores can be a relatively safe investment strategy.
Real estate
Most folks think that investing in real estate requires you to buy rental properties or flip houses. While these can be good options for folks with a lot of money to invest, for others it might not make much sense. If you fall into that camp but are still interested in investing in real estate, consider investing in real estate mutual funds, real estate ETFs or REITs.
Investment apps
Apps like FlexInvest allow you to make small investments and grow them overtime.
When most of us hear about “investment opportunities,” we think of investors and financial advisors on Wall Street making million-dollar deals.
However, investing isn’t a luxury for the wealthy. Taking advantage of diverse investment opportunities of appropriate risk for your financial status is a key part of laying the groundwork to your future financial wellbeing.
Remember to check out FlexInvest as an option for diversifying your portfolio and getting you on the road to financial fitness!
