Having a healthy savings account is vital if your financial future is going to be secure but it’s difficult to put large amount aside if you’re not earning that much. With the gap between wages and living costs getting smaller every year a lot of people, especially the younger generation, are finding it harder than ever to save money.
The best way to secure your finances for retirement is to invest the money that you have managed to save and watch it grow into a nice nest egg for your later years. The problem is, you risk losing it all if you make poor investment choices.
That’s why a lot of people are put off investing because they worry that they don’t know enough about it and they could easily end up in a far worse position than before. Luckily for you, we’ve put together a few simple tips to help you invest money without the risk.
The thing that puts people off investing is that the financial world seems pretty scary, and it is, but only if you don’t understand it. Fortunately, there are plenty of people whose job it is to understand the difficult world of finance and they can help you work out where best to invest your money.
Wealth management companies like Partridge Muir & Warren will look at the markets and find the best opportunities for you. The other major benefit is that they’ll handle all of the day to day managing of the investments as well. It is possible for you to invest in things like the stock market yourself without a broker but it’s incredibly risky.
One of the things that they’ll often do for you is split your money over a lot of investments so even if one or two go bad, you’ll still be seeing a return overall. That’s going to be difficult to do yourself so you should always get advice from an expert.
Be Wary Of Fad Investments
Every couple of years, a new fad investment comes around and everybody is quick to tell you how you can easily become a millionaire if you get on board early. Timeshares are a classic example; for a while, they were a hugely popular investment but now, everybody is trying to get out of their contracts because they’re losing money.
The latest one is cryptocurrency like Bitcoin. You can make a good amount of money from investing in it, but you should always be wary of these fads because they can collapse at any time. It’s far better to go for tried and tested investment opportunities that have worked for years.
Don’t Invest Everything
No matter how careful you are, there’s always the chance that you could lose your money. If you put everything you’ve got into an investment that goes south, you’ll be in a very tricky situation. That’s why it’s always sensible to keep a chunk of your savings aside and leave them in a high-interest account so even if things go wrong with the rest of your investments, you won’t be left with anything.
Follow these 3 rules and you can invest money without anywhere near as much risk.