Saving is a good habit. You can use your saved money while in the time of need. It is one of the best practices, and it can help you in enjoying your life with the desired financial liberty even after the retirement. Well, another great thing that you can do with your savings is “investment”. Investment is a method that can help you in growing your money without any effort. Let me describe basics of investment and then I will tell you about the top three investment options available today
What is Investment?
In a context of money and finances, we can define it as,
“The process of investing a certain amount of cash with an intention to earn profit or return is called investment.”
Now as I promised at the start of this post, let me move ahead with the top five investment options you can use for earning significant returns on your savings!
#1 Saving Accounts
It is one of the simplest methods through which you can achieve two benefits,
• You can keep your savings safe and secure
• A steady flow of income per year
Opening a saving account is quite a straightforward process. Almost all of the banks are offering saving accounts. Naturally, the bank invests your money in other complicated investment schemes or lends it to the borrowers. Different banks are offering different interest rates. In some cases, you may take out your money in the event of need.
#2 Investing in Bonds
It is another good investment option that you can use safely. Investment bonds are quite popular these days. The best thing about it is the possibility of earning a fixed amount of money per year. The government of UK is running an extensive and comprehensive bonds program. While, many other financial institutions, and organizations are offering similar kind of bonds as well. The only factor you should consider while depositing your money in these bonds is its fixed nature. It means that the money you are investing will get fixed for a certain period. However, it does not mean that you will be unable to take your money back.
Well, shares or stocks have always remained an attractive investment instrument for seasoned investors. But, this option requires some knowledge and information about the share market and prevailing trends. In case if you don’t have much money, and you are willing to go for a safer option than we believe it is not for you. The possibility of earning returns in this investment model varies from the corporation to corporation. There are some good performing companies known to pay their shareholders with a healthy “dividend” each year
I believe, this short video can help you in developing a better understanding of this subject!