We’d all like to earn a little extra money to be able to afford a few more holidays a year, splash out on a new car or have savings for any unexpected emergencies. Sadly the spare change in your piggy bank will only get you so far; to make some serious money, you need to think big and invest your wealth wisely to see a dramatic increase.
Why do it?
In simple terms, wealth investment means putting your money or assets into stocks, property, businesses, etc. in the hopes that it increases your wealth in the future. You need to think about time, risk factors and inflation when predicting how profitable the investment will be and deciding how much of your current assets you’re willing to invest.
If you’re a complete novice, seek help from financial professionals to get your foot on the investment ladder. Chartered financial planners such as Partridge Muir & Warren offer a full wealth and investment management service that will help you keep track of your investments with advice on how to react when the value of your investment goes up or down. Their services are ongoing, so you’ll always have support and will be given advice on what to do with your money based on the current market outlook.
Productive assets are key to wealth investment: buy a property, and you’ll have a constant flow of money from rent or invest in stocks, and you’ll (hopefully) benefit from long-term growth. You need to invest in something that will give you a sizeable return, whether that comes in the form of dividends from shares, interest from savings accounts or capital gains when you resell your assets.
A few methods to consider:
- Stocks: invest in the stocks of a company or business, and you’ll technically have shared ownership of that corporation. As a shareholder, you’ll be given dividends – a portion of the company’s earnings.
- Bond: buying bonds means lending money to a company or business for a fixed period then being paid interest on the transaction on top of the capital you get back at the end of the deal.
- Mutual funds: these are ideal for small investors who can’t afford to invest alone. Stocks or bonds are bought using the collective money from a group of people, so payouts and expenses are also split.
- Property: buy a house or apartment to rent out or renovate and resell at a higher price point.
Investment can be a tricky game: one minute you’re making hundreds or even thousands, and the next minute you’re at a total loss. To be successful, you need to keep on top of the market, understand trends and know when to sit tight and wait it out when things are looking bleak or invest even more if figures are on the rise. Keep on top of investment news on the Money Saving Expert website so you can react quickly to any changes that may affect your investments.