Have you ever thought about what you would do if you had some extra money coming or what you’d do if you won the lottery? I think most people daydream about this kind of thing from time to time; would you quit the day job, for instance? Splashing the cash and buying a new car or taking a trip to a bucket-list destination may be the thing that first crosses your mind, but when you think about it, they aren’t going to be the things that you are going to be most proud of in ten or twenty years time. Unless you have some debt to be paying off first, your first port of call should always be to invest any ‘found money’ in order to really benefit from it long term.
One of the reasons is that the things that you will buy, like cars or holidays, will depreciate in value, if have any value other than memories. But investing the money could get you onto a path of financial freedom much sooner than you think, when holidays and cars can be bought as and when you fancy them. So with that in mind, here are some smart ways to invest if you do come into a fairly large sum of money.
Property
Whether you are looking to buy a home for yourself or to become a landlord and rent out a home, property is nearly always going to be a good idea. Depending on your location, the property price is likely to rise and rise, especially if you see it as a long term investment. You could even go quite niche looking at designer homes, like the houses for sale from Make Homes, for example. They are a physical asset to you as well, so if needed, you can always sell up and reduce what you owe or take the cash.
Peer-to-Peer Lending
If you’re not familiar with peer-to-peer lending, then it is something to do your research on as it can be a great way to invest your money, whether you have a large amount to invest or a quite small amount. You can spread your investments, especially if you are using a platform like Lending Club, and you can get a good rate of return back, depending on the risk of the investments. You can earn interest on these loans, rather than having your money sat in a bank getting the lowest interest rate around.
Cryptocurrency
One of the more risky investments that are around, simply because it is so new and not got as much of a track record as the stock market has. However, when done in the right way and when you buy and sell at the right times, it can be something that does end up being pretty lucrative. As mentioned, it can be quite high risk, so you need to take time to plan and research before putting your money, in, as well as being able to hold your nerve to buy or sell at the best times to minimise any loss.
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