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When we talk about ‘investing’, it may bring to mind ISAs, high-interest savings accounts or speculating in stocks and shares. However, there are some quirkier ways to invest your cash.
This doesn’t mean taking ridiculous risks and purchasing bitcoin or another virtual currency. You can still spread your risk across a range of investments to create a varied portfolio that is diversified.
Leaving your nest egg to wallow in your savings account accruing minimal interest can lead to frustration. You want your money to work for you. Take a look at these quirky investments that may pique your interest.
Bricks and mortar has often been seen as safe as houses (excuse the pun) when it comes to investing. You can choose to purchase a fixer-upper to flip or a small apartment to rent out. It depends on whether you are looking for a long term or short term investment.
Consider the amount of money you want to spend. If you are tempted to head to a property auction to seek out a bargain, you may need to check out the bridging loans available to you. Many mortgage lenders won’t release funds until a home is habitable, so a short term loan may be necessary.
If flipping a humble abode, stick to your budget and work quickly to maximise your profits which you can then reinvest. You may even want a mixed portfolio of rentals and flips.
You may adore your favourite tipple at the weekend, and you might even consider yourself a bit of a wine connoisseur. However, investing in wine is a whole different matter. Check out the most sought after vintages and consider whether you can afford a crate alongside storage costs. As your wine becomes scarcer and ages, it will increase in value in the same way an antique or piece of art does. Hold onto this investment for the long term and you may profit than if your cash remained in your savings account for the same length of time.
Investing in collectibles and art is becoming increasingly popular also, as people look to alternative places to invest their cash while interest rates are so low. Find a reputable art dealer who can help you to fill your home with beautiful art which will also hopefully hold its value, and increase, over time.
Many amateurs have given Forex trading a go with varying success. Some platforms allow you to practice trading using a dummy account which is advisable before you put any of your hard earned income in. Here, you can hone your skills of buying yen against the dollar and selling krona against the rand. Only ever trade an amount that you can afford and be willing to take losses as well as wins. Forex trading is not for the faint hearted, and not something I personally advocate as it requires a lot more attention than investing in index tracking funds in the stock market.
Choosing where to invest your cash requires careful consideration. Don’t put all of your financial eggs in one basket. If one investment fails, you could lose all of your cash but if you have your money spread in many investment pies with a mixture of low, medium, and high-risk options, you are diversifying your risk.