Where can I invest my cash?
We spend most of our time trying to figure out how to save more and how to make even more money. When the budget is strict and we need to keep ourselves in check in order to make it to the end of the month, it makes a lot of sense – but what about the times when we actually have a bit extra? Dare we ask the question . . . where can I invest my cash?
There will, in fact, come a time when you don’t need tips on how to spend less on your household or how to start your own little side-hustle in order to up your income. Sometime you may, believe it or not, have the kind of money where you need some advice on what to do with it next.
Where can I invest my cash?
These kinds of tips are actually just as important as those you swear by when money is tight as it could mean the difference between cashing in even more and actually losing some of your money. Here is a handful of clever money tips for when times are great so that you can get the most out of your soaring finances.
1. Put some aside for an emergency fund
Since you actually have an amount to invest at the moment, it’s a good idea to start by safeguarding yourself. An emergency fund is the pinnacle of financial safety and it’s the first thing you should establish before you go out and buy all the shoes and chocolates your heart desires.
How much you’re going to put into this depends, of course, on how much money you’ve got. If you have enough to live off for about six months you might want to put everything in right away; it may be a bit of a buzzkill but you’re going to be so happy you did this in case you lose your job or have any other personal issues in the future.
It could mean the difference between turning to your friends, family or even the bank for a loan or sleeping soundly at night, knowing that you’re taking care of yourself and an uncertain future.
2. Invest some in an index fund
If you have the kind of money where you’re able to put aside six month’s worth of living expenses and still have some cash to spare, you’re in a decent financial situation and can start to look for different investment opportunities.
The stock market is, as you know, often uncertain – but index funds are still going swimmingly and you might want to put some of your cash in here. You could start by investing a lump sum right away and then just making monthly investments after this or sticking to small monthly investments instead.
If you go for the latter, you should keep in mind that it’s better to have a sufficient amount invested so that you’re able to make it through a slight dip. An index fund is, after all, a long-term saving option and not something you should back out of as soon as the market takes a slight hit.
It could mean the difference between exiting with a loss and taking out a substantial amount in ten years from now. Check out this article in case you’re new to the stock market, by the way, so that you’re up to date on everything before you get started.
3. Invest in property
So you’ve covered your back for six months, invested a bit in an index fund for your future self, and you still have more than enough to spare? This is when the property market comes in handy as you’ll be able to put down a lump sum as payment and, hopefully, also have a stable job to show for when asking the bank for a loan.
Property investment is usually a good choice as long as you’re investing in a stable or at least up-and-coming area and in an apartment or house that won’t ambush you with a lot of hidden problems.
You can check out this penthouse suite for sale, for example, and keep in mind that the newer the place you buy is, the less likely you are to face a host of renovation challenges with it, later on.
Having money to invest may seem like a dream come true, and it really is, but you risk a lot if you don’t know what you’re doing. Try to stay away from the high-risk active stocks, first of all, unless you know what you’re doing – and make sure that you have a nice backup fund ready before you do anything else.