A process that helps increase your money is known as investing. Money is the basic need of life. Nothing comes for free in this life we know that. You earn money by working. The amount you get from a job can be limited. Investing is the way to increase your limited amount of money. You can invest your money in the long term or short term. There are many ways to invest your money. 

Shares investing, property investing, cash investing, and fixed interest investing are the types of investments. 

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Share and property investments are growth investments.

  • Share investing is a risky but fruitful investment. You buy a company’s shares and hold them. When the value of that share increases, you can resell it. The value of shares can decrease as well. Expert advice can be helpful to weigh the risks involved. The average return rate is 10 percent per year.
  • Share investing needs attentiveness. If you invest in the share market then you have to be aware of market trends. The probability of rise and fall in the price of a share can be determined by your research and planning. Lack of knowledge and attentiveness often leads to losses.  
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  • Property investing is also similar to share investing. You buy land, buildings, apartments, etc. Assuming the value will increase in the future. It is a time-consuming process and indeed involves high risk. But the amount of profit is high and if everything goes as planned. It will generate regular profit. 
  • The satisfaction of owning something creates more trust. Property investing is more trustworthy and generates high profit. As compared to the share market, the real estate market is more stable. It consumes less time. With the share market, you have to be attentive all the time. Once a property is bought, it demands care and patience.  
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Cash and fixed interest investments are defensive investments.  

  • Cash investing deals with your savings accounts and deposits. The money earned is saved in your bank accounts. The interest applied is between 2 to 3 percent, which is very low.  It is not the best way to invest your money. Certainly, it doesn’t involve research and planning. You take your money and put it into a bank account. It is the most common way of investing. 
  • You can invest your money with fixed interest. Government and private organizations help you invest your money with fixed interest. The interest rate applied is between 4 to 6 percent per year.  A big chunk of money is often invested in fixed deposits. Money that people don’t want to invest in their savings accounts. The risk involved is negligible. Research and planning are slightly involved.
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Why invest? 

As we know, investment is the way to earn more. Your needs can change. What are your requirements today will not be the same in the future. Investing secures your life. Whatever the circumstances are, a good investment will help you.

Start early– more investments, more money. There are many risks involved in investing, especially when it comes to growth investing. Begin early and learn how to take calculated risks. Better research and planning will lead to higher profits.