Making a bit of extra money is something we all need from time to time, whether it’s that electric bill that was a little bit too much this month, or we find ourselves out of pocket for other reasons. But while most of us consider getting a job to tide our finances over, it’s not always feasible. This is where sensible investments come into play. So, what are the best investment options for you when you do struggle from time to time?
Peer To Peer Lending
This is relatively new. The process involves online services offering loans, either for businesses or personal loans. As soon as the potential borrower qualifies for the loan, it’s funded by other people. The benefits of this type of investment are that there is no bank involved. Therefore, there is less of a concern with regards to keeping up payments with a large organisation. Your money is put in with the other investors, and you make a loan to one individual, requiring the necessary funds. There are various benefits, you get high returns, the rates are higher, and you can get a payment every month including the interest that you are entitled to. With all of the positives, there are downsides. By lending to others who haven’t been able to get financial help from banks or building societies, there is a real trust issue at stake. But, you are able to decide on the credit rating you can consider for a specific borrower. As a result, there is a vetting process as comprehensive as a bank, but you’ve got to put some money into it first.
We’ve all heard of Bitcoin by now. The fact is that you can buy Bitcoin pretty much anywhere now, but with any cryptocurrency, there are a lot of questions that need answering. There are various positives to cryptocurrencies, one being that its decentralisation has made it immune to transaction fees. But as there have been attempts to regulate the currency, it means it’s a questionable choice. As with any investments in an alternative money source, it can be quite volatile, so it’s best for you to understand exactly what you are getting into. Bitcoin is a very controversial subject matter and everyone is jumping on it like it’s the gold rush at the moment. And it’s definitely something that’s dividing opinion right now, especially as Bitcoin is a limited supply of finance, and more can’t simply be pressed. However, as most online retailers are accepting cryptocurrencies as payment, if you are able to acquire a sufficient amount, and play the markets effectively, it could leave you with a very lucrative amount.
And as cryptocurrency is akin to the gold rush, you might want to consider investing in gold! It’s still a very desired commodity, and there are various ways you can invest in it. You can purchase gold coins or bars, exchange-traded funds, or you can invest in gold mining stocks and options. Gold is considered a “rescue asset”, where the value increases during tougher financial times. As a result, if we see a repeat of the 2008 market crash, this is going to be a lifesaver for you.
Lots of people choose to own a business as a solid investment. This can be precarious depending on the nature of the business. As a result, if you don’t feel confident enough to run your own company, you might want to consider having a share in somebody else’s. Lots of start-up companies are desperate for money, and so, they offer shares of these companies on equity crowdfunding websites. As a result, you can purchase shares in a company, and if this company succeeds further down the line, you will be sufficiently rewarded. And, if the business fails, you’ve lost your funding. If you plan on going down this route, it’s vital to have some business knowledge behind you, and an idea of where specific trends are going. Automation is a good one right now because many industries are focusing on automating basic processes, not just manufacturing industries, but almost any start-up company is looking to find a way to cut their costs. Space travel is very hot right now, after what Elon Musk has launched into space, but this would be quite an investment! As far as a safe investment is concerned, you are better off going towards the usual suspects, such as marketing or e-commerce.
Choosing a solid investment is always going to be a gamble, so before you do anything, do your research. These four options are considered quite alternative to the majority of people, but for those that have the financial knowledge, they are pretty solid. Always do your homework first!