Low Risk Ways To Invest Your Money.

(Akiit.com) Investing gets a bad reputation. Many people see it as gambling, whilst others believe the only way to get involved is to have a lot of money in the first place. Whilst this may be true with certain investment strategies, there are many ways of making a return without having to risk the chance of heavy losses. Here are a few low risk strategies of investing that anyone can try out.

Set up a savings account

The most secure form of investment is to set up a savings account. These accounts collect interest, allowing you to make a profit in the long run. It’s worth shopping around to find the best interest rates – certain accounts may have bonuses if you can pay in a regular amount of money each month. Consider looking beyond bank savings accounts. There are accounts such as government bonds and corporate trust funds that may have a better interest rate.

Start micro-investing

Micro-investing is a way of investing tiny amounts of money. You’re likely to make less of a profit, but the potential loss is also less. Micro-investment software can save up your loose change and advise you where to invest it to potentially make the best profit. In most cases you won’t even notice this money going out of your account. Acorns and Stash are two popular microinvestment companies – this Acorns vs Stash post can help you to make the best choice. You can manually micro-invest your money but these programmes make it much easier.

Try peer-to-peer lending

Peer-to-peer lending is a means of giving out money to other users online as a loan. This loan collects interest, making you profit in the long run. You get to choose the causes you lend money to and the amount you’re willing to lend. There are lots of peer-to-peer lending sites out there, but it pays to use an established and secure site like Ratesetter to ensure that you get your money back.  

Make use of credit card rewards

Stoozing is a way of making money using a credit card. Certain credit card providers will offer you a bonus for spending money on them regularly and paying back your credit card bills on time. These rewards may only last for a limited time. By constantly switching credit card providers, it’s possible to take advantage of these rewards and make money out of them.

Pay off your debts

Paying off your debt might not sound like an investment strategy, but it can be in most cases. Your debts collect more interest the longer that they go unpaid – by paying them off more quickly, you minimise the amount of interest that you pay in the long run. This could give you more disposable income in the future just like a regular investment strategy.

Staff Writer; Gary Porter

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