Got some money that you’d like to invest? The number of investment opportunities out there is constantly growing, which can make it difficult to know where to start when making your first investment. There are hands-on investments such as real estate and there are remote options such as stocks. There are opportunities to invest in the old, whether it be old coins or vinyl, and there are opportunities to invest in new digital trends including bitcoin and peer-to-peer lending. All in all, there are dizzying amount of choices. Here are some tips for helping you to narrow down your choices and find the best investment for you.
Consider your investment budget
The more money you have to invest, the more options you’ve got to play with. Many opportunities come with a minimum investment – getting involved in company shares often requires thousands whilst forex dealing may only require a couple hundred. Even high-interest savings accounts may come with a large minimum investment.
There are ways to still make a return with little money. Crowdfunding projects and mutual funds can often allow you to access much bigger investments with a smaller budget by teaming up with lots of other investors. Sites such as Crowd2Fund could be worth checking out.
Consider the risks
In most cases, the higher the risk of loss, the larger any possible returns will be. When opting for high-risk investments, you should only ever put in what you can afford to lose – such investments are much like gambling. There are of course play-it-safe options where the return may not be so great but there’s little or no risk of loss. Such options include peer-to-peer lending through official sites and savings bonds. You can compare savings accounts at sites such as Money Saving Expert.
Follow your passions and interests
It’s easier to invest in something if you have an interest in it. There are lots of hobbyist investments out there such as restoring old cars, selling collectibles and investing in fine wine. There may also be cause that you feel you can invest in such as shares in a wind farm project or an ethical clothing brand startup. Many people invest in property flipping for the reason that they can get passionate about it and put their design and DIY skills to the test. What you don’t want to do is invest in something that confuses you or goes against your morals.
Get help from a broker
Investing can be so complicated for some people that they need a guide, or even someone to do the investing for them. This is where brokers come in handy. Many brokers charge commission, which can sometimes be high. It’s worth shopping around for low broker fees such as these Tastyworks commissions. There are many brokers nowadays that swear to offer low fees, but you do need to shop around to find them.
Be careful of scams
Whilst looking for an investment opportunity, you do need to be careful of scams. There are many shady investment companies out there that prey on people’s lack of investment understanding, claiming that they can make your rich from bitcoin with the press of a button. Always research investment companies online by reading reviews – these will give you a good idea as to whether something is a scam.