Easily Accessible Ways to Invest Your Spare Cash
If you are lucky enough to earn what you need to be able to pay your bills and save for the future, it may be worth looking at ways to invest a little money. Of course, you need to be careful about doing this. But, as you will see, there are now plenty of ways for ordinary families to get involved in investments.
Set up a general investment account
As you can see from this website anyone can set up a general investment account online. Both low and high-risk investment opportunities are available via this channel.
When you open a General Investment Account (GIA) the cash you put in it is taken by the investment team and invested in a range of ways. Sometimes they buy shares with it other times your cash is loaned to businesses. You pay them a fee to do this for you. The fees vary, so this is something you will need to look at when assessing if this way of investing is for you or not.
With a GIA the investment team decides how your money is invested. An experienced team will know what they are doing and you stand a good chance of seeing a good return on your investment.
However, if you want more control you can have it. For example, you could buy stocks and shares yourself using a broker. Again, there are fees involved and you will need to do your research to be able to make sound investment decisions. But, a lot of people enjoy watching the stock market and investing in this hands-on way.
Another approach is to buy government or company bonds. These are typically offered on a fixed interest basis. But, usually, your money will be tied up for a fairly long period of time. So, again, investing in this way requires a little time and research on your part.
Invest in real estate
Over the decades, property has proved to be a sound investment vehicle for a lot of people. Provided the housing market remains strong, it should continue to be so.
There are a lot of ways to get involved. If you have the cash, you could purchase a buy-to-let property.
But, do not forget the option of investing in your home. In most areas, converting your loft or adding an extension will add value to your property. You just need to weigh the cost of making the change against how much more your home will be worth, once it is done. Provided you do that well you will be able to make a profit from your home improvements when you finally sell.
A word of caution
It is important to understand that investments are different from saving. Typically, with investments, your capital is at risk in a way it is not if you were put it into a savings account.
So, before you invest any money, you need to do your research. It is wise to get advice from a professional, fully-trained, independent financial advisor. This Money Advice Service article explains the best way to do this.