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Capital at risk.

Now that the cost of living and inflation are at an all-time high, it makes sense to focus on ways to increase your wealth rather than just saving it. Saving money is always a good idea, especially when you want to create a safety net or to make a large purchase. However, the interest on many savings accounts is no longer high enough to adjust for inflation and rising costs.

Many people find that investing allows them to put their savings to good use. The trick is to be organised with your finances and also take the time to research and explore different methods of investing your money.

Stocks and Shares

The traditional method of investing is to invest in stocks, shares, and bonds. The simple way to explain this is that you essentially buy a part of a company. Depending on what you invest in, you can earn dividends, which is a steady flow of income. You can also sell those shares for more than you bought them for. 

However, it’s very important to do your research and take your time when making investments. Don’t just make the risky, high-profit choices. Try to build up your investments and always make sure you can afford to lose what you invest if it comes to it.

Real Estate

Real estate is considered a relatively stable investment because, as a physical asset, you are always left with a way to sell and make money. Also, there is a constant demand for real estate and properties, allowing you to rent or sell for a profit.

However, just because the real estate market is always in demand, it isn’t always consistent and it certainly isn’t easy. While houses are expensive, it can be hard to get a mortgage to buy the property and, even if you rent the property, balancing the mortgage with maintenance and property management costs can result in little, if any profit.

So, always do your research and look for smart property investments. Build a plan to make money and you’ll be more successful.

Cryptocurrency

One of the hottest recent investment options out there is cryptocurrency. Rather than buying a physical asset, you invest in a digital currency that fluctuates in value. People have made significant amounts of money using this method, and there are ways to “mine” cryptocurrencies as well, allowing you to build your assets.

However, a lot of people have also lost money by making risky investments that don’t work out. Cryptocurrencies are the very definition of high-risk, high-reward investments. Unfortunately, many people focus on the reward without considering the risk.

Again, do your research into the trends and be prepared to cut your losses when you have to. Ideally, cryptocurrencies should only be a part of your investment portfolio if you can afford to lose your investment. Other more stable investments are worthy of your attention. 

Physical Assets

As mentioned above, one of the benefits of real estate investments is that you are investing in a physical asset, meaning that you don’t necessarily have to lose everything. But a property is a huge asset, with a huge cost.

Other physical assets are far more affordable and can still earn a pretty penny. Often, trading in physical assets involves buying and selling,rather than trying to earn a regular income through dividends. This means that you need to keep a close eye on value rates so you buy and sell at the right time and for the right price.

For an example, let’s say that you’re trading in gold. Gold is a popular asset to invest in because it’s relatively stable and has a high value, but you still need to do your research. Look into what is gold forward rate, as well as other questions that can help you determine whether this is the right option for you.

It’s possible to invest in all sorts of different physical assets, the trick is to always pay attention to their value. Collectibles are a great option and can turn a hobby into a good way to make money if you’re able to collect valuable pieces. You can even buy and sell clothing, especially if it has value as vintage pieces. 

Again, do your research and take things slow, allowing you to naturally build your investments and improve your finances.