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11 Of The Best Ways To Invest Some Spare Cash

3466349463_d9069874fe_zLet’s face it; there isn’t anyone on the planet that wants to be penniless and not have enough money to enjoy a comfortable lifestyle. As you can imagine, many people are often looking at strategies to increase their net worth and make their money work for them. Sure, they might have jobs to get a regular fixed income to pay their bills each month. But, some folks will have cash lying around in a bank account not doing much.

If you’re one of those people, the chances are high that you want to do something with that money. The question is this: what should you do? Well, there isn’t one clear-cut answer that applies to everyone. That’s because there is a plethora of investment ideas and strategies out there to meet people’s needs. You will likely have a risk limit and an idea of how much profit you’d like to make from your spare cash.

In today’s blog post, you will learn 11 of the best investment options that most people select each year. In no particular order, they are as follows:

 

  1. Pay off loans and credit cards

Okay, paying off some of your debts might seem like a lame way to make your money grow. The thing is, many people try to save or invest money while they also owe it to others! Before you do anything, it makes sense to start with a clean slate and clear down all your loans and credit cards.

Once you do that, you’ll soon have extra disposable income to play with each month. Assuming your loan and credit card payments weren’t financially crippling you, why not allocate those installment amounts towards your investment fund? Doing so means you have more cash to invest in other endeavors.

  1. Invest in yourself

While it might be nice to think that you could be a property magnate or wealthy within the next few months, the truth is it’ll take years to build up your net worth to significant levels. In the meantime, you will probably need to keep working for a living to pay your monthly bills.

It can make sense to use some of that spare cash to gain qualifications or industry certifications. Why? The answer is simple: to earn more money from your day job!

  1. Buy a house

Many people know that renting is a pointless exercise if you’ve got the money to put down a deposit on a property.

With that in mind, you should consider looking for a suitable house to buy in your neighborhood. If you enjoy where you are living now, you might find that your landlord could be willing to sell the house to you!

Buying a home is a sound investment strategy for the future. Even if you don’t purchase any further properties, when your mortgage gets paid off you own the house outright. You can then release some of that equity or sell the property if you wish to downsize.

  1. Pay off your mortgage

Let’s say that you’ve ignored #3 above because you already have a house, but you’ve got a mortgage on it. If the cash you’ve accrued is enough to pay off your mortgage, that is something you should consider doing.

A few things will happen once you’ve paid off your home loan. First of all, the house is 100% yours! Second, you’ll have a few hundred bucks spare each month that you used to allocate to your mortgage. And, third, you can lead a more comfortable lifestyle!

  1. Become a trader

The retail forex and stock trading industries have grown exponentially in recent years. There are now thousands of brokers that allow consumers to trade in the forex exchange and company stocks markets 24 hours a day, five days a week.

All you need is a computer, Internet connection, and some money to invest in your trading account. You can then trade for a few minutes or hours each day to grow your pot of cash into a much larger sum. Michael Banks of fortunateinvestor.com has some further information on trading forex and stocks.

Of course, day trading isn’t without risks. But, with the right trading strategies and mindset, making a profit isn’t an impossible goal to achieve.

  1. Set up a business

For some people, the thought of investing money in financial markets can be somewhat scary. If that’s the case for you, and you’re thinking of a career change or break, why not start up a business? It’s easier than you think to get started, and there’s plenty of help and support available to startups.

There are many types of businesses you can start that don’t even require a lot of capital investment. That’s good news if you want to “test the water” and see if you’ve got the right entrepreneurial skills.

  1. Become a peer-to-peer lender

These days, folks don’t need to approach a bank if they need a personal or business loan. Instead, they can borrow some money from peer-to-peer lending brands like The Lending Club and Funding Circle.

How it works is quite simple. You put your money into a big pot with other people, and that cash gets lent out to various individuals or companies. Each month, you’ll get a share of the installments paid plus the interest earned on the borrowing. You can choose how much to invest and what risk level you are comfortable with.

  1. Buy and sell cars for profit

If you’re looking for a fun way to invest your money and make it grow, and you’re a car enthusiast, how about buying and selling vehicles for a profit? The art of “flipping” is something that anyone with a knowledge of cars and their value can easily master.

Sometimes private sellers might be keen to offload their vehicles for a knock-down price. You can use such situations to your advantage and sell it on to make a profit at a later stage. Some of the cars that you buy and subsequently sell might only need cleaning and detailing to achieve a higher asking price!

  1. Shipping containers

Perhaps one of the unlikeliest of investment ideas anyone will ever suggest to you are shipping containers! It’s actually a low-risk way of investing your spare cash and can net you a return of around 12%!

The way that it works is simple. You physically buy one or more shipping containers and then lease them to freight forwarding companies. You get paid an agreed rental income while they used, and they are insured in case they become damaged or lost at sea, for example.

  1. Bonds in emerging countries

Many emerging markets such as Brazil are showing plenty of growth potential in many industries. It’s possible to purchase some government bonds in those countries and keep hold of them. You can then sell them when they’ve increased to a value that you feel has earned you enough profit.

Another option is to invest in an exchange-traded fund (ETF) that tracks the value of those bonds. It can be a more viable choice if you’ve not got five or six-figure sums to invest in government bonds.

  1. Social real estate investment funds

Many charities need access to suitable housing for the people they support. It’s an interesting way to invest in property while offering something back to your local community. You can expect to yield returns of around 10-12% per year by investing in social real estate investment funds.

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