Many employees nowadays feel that what they are earning is not enough. This is in consideration of inflation and the increasing cost of living. Unfortunately, not all employees are entitled to a fixed increase in salary that will match the decreasing value of money. Some resort to getting a part-time job, opening their own business, or investing.
Investing is a great idea, but it is not for the faint-hearted. The risk associated with it, including the period of time before one may realize the return on investment (ROI), can be a complicated process. If you are willing to wait for your money to grow, here are some options that you can consider.
Special bank deposit products
Banks offer regular savings accounts with a small amount of interest for entrusting them your money, however, the interest rates are getting lower and lower. As an alternative, banks offer special deposit accounts that can yield higher interest. This is considered to be the safest option to help your money grow without the need to monitor it. For banks to hold your money over longer periods of time, the depositor may need to pay pre-termination charges. This option may not be significantly higher compared to other options, but ther is very little risk involved.
One of the best known methods of investing is through the stock market. Another advantage for gong with this investment is the dividends - an extra amount given by the company when the business is doing well. Investors are warned by financial advisors that this kind involves high risk. Therefore, allot an amount that you are willing to lose and willing to monitor your stock performance.
Buying Gold Pieces
Some find gold to be as good as cash. It is not limited to gold bars and gold coins, but also with gold jewelry. Most markets accept those that are 18k (carats) and higher, with a possibility for the value to grow over time. Buying and selling gold may also require monitoring its daily value, with the same concept with the stock market, to buy when it is low and sell when it is high. This is a great option as it can be worn as an accessory and can be an investment at the same time.
Buy a House or Piece of Land
If you are currently renting a home, why not consider buying a property? The amount you pay for rent may already help you to be able to buy. It is considered an investment since a parcel of land increases its value through the years. If you don't have cash upfront, consider getting a mortgage. If you're planning on this kind of long-term investment thre are useful tools available online like a mortgage calculator. Aside from calculating the amount you would have to pay every month, it will also give you an idea as to whether you would qualify for a mortgage based on your income and will provide you with all the information you need about mortgages.