We’ve all heard about investments and the drama surrounding them. Stocks and shares can plummet or rise, corruption could be involved, and there’s no shortage of scams that could destroy your reputation and plunge you into a deep dark pit of despair and debt. Whether it’s property development, alternative investments, typical stocks and shares or even foreign exchange, people always talk about safe investments and taking it easy with their money. But what is a safe investment, how do they work, and is it worth your time? Let’s find out.
One of the biggest problems with investing is that there are always inherent risks associated. This is because stocks and shares can fluctuate in price a lot and it’s hard to predict where they will end up. It’s also an expensive game to get into because of the high barrier of entry, so it’s definitely not for people who don’t already have a lot of cash saved up. Alternatively, you could look at info on best penny stocks and invest in smaller inexpensive shares instead. It’s the best way to get a start on investing, you don’t need to worry about losing too much money, and you can still make a great deal of money trading penny stocks.
Contrary to the name, penny stocks rarely ever cost a penny and are closer to around $5 for each one. They fluctuate violently, giving them a reputation as the wild west of investing, but many people have made a fortune from it by investing in a company that eventually turned their penny stocks into power ones.
Types of Property
Property investment is another way to flip your cash and watch your bank balance grow. Unfortunately, it’s not the easiest way to do so due to the number of factors that affect the price of a property. Something you bought for $50,000 could be flipped and sold for twice the amount, but it could just as easily plummet in price and you’ll struggle to break even despite all of the money you poured into it. However, there are safer ways to invest in property without risking all of your money.
For starters, investing in land instead of property is an almost guaranteed way to make a profit. Land itself is very desirable and the price rarely changes. If you build on land, then you have to commit it to a specific use. For instance, you could pour money into developing a block of apartments, but what happens when a rival does the same? You compete in the same market and you’re less likely to get attention. If you commit to developing a commercial property to rent out, you might suffer heavy losses when foot traffic in the area diminishes. So instead of giving the land a purpose, simply hold onto your land acquisitions and sell them to developers.
To summarise, it’s possible to play a safe game with your money, but you shouldn’t expect to make big gains. It’s worth taking risks in business, but if you’re short on money, not willing to put your money on the line or simply want a safer and steadier path to wealth, then focus on playing it safe with your investments.