INVESTING IS FOR ANYONE
Many people assume investing is just for those with a high level of income or disposable cash but that is not the case. For those prepared to play the long game, investing can be a good option in terms of reaping financial benefits for small amounts of cash.
With recent economic constraints many are looking to the future and wondering how they can save more and make real long term gains, and investing is one such way to potentially secure a better outcome.
There are many ways to invest small amounts and these can range from cash savings to collectibles, property and commodities. However, investing in shares has become increasingly popular with those who had not recently considered this option. This is partly due to the amount of useful information on the internet, and the ease with which this can now be undertaken through a number of companies who specialise in distributing payments and investing on your behalf.
SHARES AND THE STOCK MARKET
Shares offer the buyer a stake in a company’s profits but are susceptible to changing markets so that the shares can fall and rise in value. The answer is to spread your money over a number of shares or bonds as follows.
These provide a means of spreading your investment over a number of different companies but remove the hassle of choosing them yourself and the difficulties involved in keeping up-to-date about the markets.
Fund Managers: This is the more expensive option of the three and also has the human fallibility factor so although a fund manager can make good decisions on your behalf the opposite could also be true.
Index-Tracking: Much cheaper, passive option with small amounts of investments spread over a large number of companies based on previous market statistics that are worked out by computerised programs.
Robo-Advisors: New cost-effective technique based on computer algorithms which enable a profile of the investor to be created, and matched with the most suitable portfolio and for intermittent adjustments to be made.
A number of companies offer this new service, for example Moneyfarm, and this method is perfect for those wanting to invest at a low-cost and let the company do the work of making their money produce dividends on their behalf.
Another such company is Evestor, and these models have been successful in combining methods of profiling and risk assessment with the latest in algorithm technology.
MAKE SURE YOU CAN AFFORD TO TAKE THE RISK
There are certain circumstances where you shouldn’t invest if this will eat into money needed to pay bills and living expenses, and if it’s money that you cannot afford to lose.
However, if you have enough savings or a reasonable amount of disposable income each month then this can be a great way of reaping financial rewards for the future!