Better Ways to Invest Your Savings

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Better Ways to Invest Your Savings

Putting money in a savings account with your bank is probably the safest option of all, if you do not mind a very low return. Interest rates are so low at the moment that your money will actually devalue if left in a bank. Of course, not everyone likes to take high risks but these do yield the best returns. There are some low-risk options that will give you more than leaving your money in a savings account.

Government Savings Plans

There are several government saving plans, some with higher interest rates than others. For instance, Treasury Inflation Protected Securities (TIPS) can be inflation proofed, and so the higher inflation goes, the more money you make. With US Savings Bonds if you invest for the full term of 20 years, the Treasury guarantee its value will double. These are just a couple of examples of government savings plans. There are others and they issue more every time they need to borrow money.

Invest In A Business

You might want to consider investing by buying an existing business. Ensure its success continues, and you rate of return could be more than any other form of investing. Starting new businesses is always a risk, but buying an existing one though somewhere such as means that most of those risks disappear. All you have to do is work at keeping the existing clients and suppliers happy so that the working relationship continues to be profitable.

Peer-To-Peer Lending

In comparison to most others, this is a fairly new way of investing your money. You basically lend it to a business for expansion, to buy new equipment or whatever other reason they need it for. You can choose who you lend money to and who you don’t and how much you are prepared to invest in them.

As long as you do this through a reputable platform, such as, every prospective borrow will be checked out before they are allowed to post their request. In fact, the rate of default for this platform is just 5%, which is far better than most banks and other financial institutions.

The loans tend to be short-term, and if you pick the right businesses to lend to, you can make a very nice profit.

The Stock Market

Buying and selling shares can be very good for your finances if you understand what you are doing. You should seek professional help and let them know that you are looking for low-risk investments. They will have the knowledge and expertise to be able to give you guidance and will help you through all the processes involved. They usually charge a small percentage of profits for doing this on your behalf, but even after that, you should come out on top.

The secret with the stock market is not just to look at each individual deal. There will be times you make losses, and there will be times you make gains. You have to consider the overall picture, as that is the only way you will make a good return.