Investing is a very attractive idea for many people because instead of working for your money, you can actually have your money work for you. The problem is that investments don’t typically give you a great return, and the better odds you want of making more money means you have to choose more risky investments. “Safe” investments like savings accounts pay very little, and you would have to have a fortune to make any meaningful amount of money by sticking it in a typical savings account. Still, some people are happy to make a little extra money and be able to feel confident that they were not going to lose their money. Risky investments sometimes pay off handsomely, but you’re just as likely to lose all the money you invest when you start playing with high-risk investments that might be viewed by some as gambling rather than investing. Everyone’s tolerance for risk is different, and there are many ways to invest. This list might be a good way to get started thinking about how you would choose to invest your money.
#1 Stock market
Image Source: Ian Lamont
When you hear the word “investing,” it’s quite likely that the stock market is something that comes to mind right away. It’s one of the most popular investments available, and anyone can get in the game. How you invest in the stock market will determine your risk level. If you decide to invest in individual stocks, you are betting that a particular company is going to do well in the future. How frequently you buy and sell stock can also affect your risk level. Investing for the long term is usually considered less risky, while “day trading” is probably a higher risk approach which will also require a bigger investment of your time. Some people make a full-time career our of trading stocks, but it’s a very serious commitment and it is definitely not for the faint of heart.
