If you have some savings put aside, you might have thought about starting an investment portfolio. But where do you begin?
Some investments are far more complicated than others, and may require a few years experience – and a pH.D. in finances – before it’s safe to investigate.
There are, however, some less complex investment areas that are perfect for beginners.
Today, we’re going to reveal exactly what they are.
Property
If you already own a property, then this is one of the easiest ways to start investing.
Assuming you have some savings spare and have kept up to date with all your payments, then it might be your first move. There are several options.
Your first is house flipping – when you buy a home, renovate it, and then sell it on for a profit. It’s quick, and if you know a good building firm, can bring you a return in less than six months.
You can also look into the buy-to-let market, where you buy a house and rent it out to students, families, or professionals.
You could also buy a home in a nice location and rent it out to holidaymakers.
Stocks and shares
The stock market is enticing to many people – but you have to really know your onions.
While it can be tempting to plough all of your savings into a company like Apple, it really isn’t all that safe.
Our advice would be to start small and learn all you can before putting in big numbers.
There are plenty of resources out there and penny stocks to watch out for that beginners can use. Without investing a huge amount, of course.
A friend’s business
Do you have a friend whose business could do with financial help?
If so, why not invest some money?
It’s a great way of starting off your portfolio and will also open up an entirely new avenue – as well as being a potential money maker.
If you believe in your friend’s business, and are prepared to get the work done, you could end up selling it for much more than you put in.
Certificates of deposit
These are virtually risk-free because they are insured and guaranteed by the Federal Insurance Corp. However, because there is no risk, there is only a little profit.
You will find that certificates of deposit – or CODs – give returns of around one percent a year. Not a great deal, of course.
But as a starting point for your portfolio, and over a long period of time, it’s not a bad idea to get you up and running.
A final warning
Other than CODs, none of these methods of investment are one hundred percent safe.
They are easier to get involved with because they don’t require complicated processes or a huge amount of research.
But, it’s important to understand that you could end up losing money rather than making it.
Always perform due diligence before making any investment, and seek out help from a professional if you think you need it.
Good luck!
