Everyone wants to get into investment. Everyone also wants to ensure that they don’t take a risk. But do those two actually go hand in hand? It can, if you do the necessary research.
So, what are some low risk investment options that you can get?
Lending Money To Others
At first glance, this might not seem like a viable investment method. But it actually can be. If someone you know needs money, you can loan them the necessary money with the interest rate that you can both agree on. Once you loan them the money, ensure that a contract is written out and distributed to both them and yourself. This ensures that you’re doing it legally and both of you are clear on the terms.
Once they’ve received the money, they’ll pay it back to you in installments, with the interest rate that you’ve both agreed on. Make very sure that the payments are made on time, and you can have a pretty solid investment. Remember this also counts as a source of income, so you’ll have to show it on your tax returns.
Credit Cards:Â The idea of credit cards being an investment option might not be directly obvious. But there is an avenue there.
In some credit cards, you get the option of â€œrewardsâ€� through points. That’s something that can be incredibly beneficial for you. Why?
Sometimes, those points can be directly translated into cash. Collect enough of those points through valid purchases, and you’re making a solid investment option through those points, since the cash that you earn can be a lot more than just meager pennies.Take a look at the credit cards that offer this, and see which one suits you the best. But remember that credit cards can be a liability if you go overboard with them, so be careful as to how much you spend.
CD’s:Â Certificates of Deposit are one of the most low risk investments ever, and that’s why they’ve endured for a very long time. You can ask for one through your bank, or union. You can even get them through an investment broker.
You essentially lock in your money for a period of time that you’re comfortable with, and let it accumulate the interest during that time. In this time, you cannot take out the money. After the maturity period is done, you’ll get the initial amount that you locked in, along with the interest that was accumulated. You can even put it back into investment mode if you want. Over time, this can be very beneficial.