Three Methods of Investing that Won’t Bankrupt You

Wednesday 24th September 2014

It is often claimed that all forms of investment are inherently risky, and although this might be the case, it must also be understood that some forms of investment are more risky than others. For example, investing in bricks and mortar is commonly seen as relatively safe investment option, and if you compare it to the risks associated with something like FOREX trading, you can see that this is true.

So if risk is relative, what are some of the least risky methods of investing your money? In this article, we delve into that very question and come out with just a few of the best ways that you can safely invest your hard-earned money and turn it into something more.

Property Investment: Buy to Sell or Buy to Let?

Surprise! As suggested in the introduction, property investment is one of the best ways that you can invest your money here in 2014 and it looks like it will be for the coming couple of years at least. Really, the most important question you should be asking yourself here is whether you should be buying to sell or buying to let. Both have their respective advantages, but we’d suggest starting with buy to let, as this generates you a stable monthly income from which to build out from.

Hobbyist Assets and Collectors Items

As financial experts like the ones at Sucden Financial will tell you, a great way to reduce the amount of risk in your investing strategy is to have a broad portfolio of assets – to have your investment eggs in multiple baskets, so to speak. This can be easily achieved if you invest in a hobbyist asset like vintage fashion, art or even old videogames that can sell for hundreds if not thousands online.

Financial Investment with Loss Prevention Techniques

Finally, even investing on the financial markets doesn’t have to necessarily be as risky as you think it would be if you take enough risk-reducing measures. As an example, if you calculate the standard deviation of a given financial asset’s history, you can start to build up a reasonable picture of how it will perform over the next period of time, and obviously, this will help you to gauge the risk of buying or selling it.

So ultimately, there are ways to reduce the amount of risk inherent across a range of different trading strategies, so now you’ve read a couple of them, you’ll know how to implement them to become a safer investor.