The financial markets can seem like a confusing place to invest your money. However, in some instances, it’s not as complicated as you might think. There is tons of information out there to learn the basics and professionals who can also guide you on the sometimes unlimited possibilities of where to put your money. Naturally, there is an element of risk to investing. Still, if you plan well, you could make a healthy return from your initial investment.
If you’re looking to grow your wealth this year, take a look at these top tips:
Simple savings
First up is one of the easiest ways to grow your money, and that’s sticking it in an account and saving it for a rainy day. The downside of this method is that in the current climate, interest rates are low, and it might take quite some time to see any resemblance of reasonable return. However, you know your money is there if you need it and can add more as you wish. Even if you decide to invest your savings in the future, it’s always a great idea to have this account running alongside it.
Stock market
Everyone has heard of the stock market, and it can be a confusing place. On a basic level, if you buy a stock in a company, you own a small percentage of that company. When that company sees profit, you then see a return in dividends depending on how many stocks you have. In the best-case scenario, that company will go on to increase in value, which makes your share price go up. In return, if you come to sell these shares, they’ll be worth more.
However, it can work the other way too. If you are unsure about where and how to invest this way, seeking professional assistance is often an excellent way to get the best understanding of how it works. You can also use asset managers who run this for you and use an investment platform to ensure they have higher purchasing power and transparency throughout the process.
Investment bonds
Bonds work in a similar way to stocks, but in this instance, you are essentially lending a company or the government money. In return for doing this, you will receive interest payments throughout that bond investment. Although this type of wealth growth is considered less risky than stock market investing, the returns are often lower in the long term.
Gold and physical commodities
Another way to grow personal wealth is to invest in physical commodities such as gold and silver. Numerous markets can offer insight into what’s best to invest in during the current climate. Plus, this type of investment is said to be more beneficial during harder economic times compared to common stocks and shares.
Growing your personal wealth in 2020 can be a challenge depending on the route you take. However, by seeking comprehensive advice and having a realistic approach, you could reap the rewards in the long term.
