For some people, investing money is often a gamble as they feel uncomfortable entrusting a very important resource to other people. Thus, they often feel apprehensive regarding where they put their money. In contrast, it is imperative to invest as it is the best way to produce high yield returns considering the increasing cost of living.
If you gamble by investing money to gain higher rates of return, it means that you need not invest that much capital just to reach your investment goals. The only thing that matters is that you will have to accept more risks if you want acquire higher returns.
The good thing about investing for lower risk is the many options available for you to consider. Here are a few of the possible choices.
Peer-to-Peer Lending – This is a different investment type because it doesn’t involve buying shares from a company. Instead, you are going to lend some of your money to someone else hoping that you will get paid in return.
Rewards from Credit Card – The points earned from some cash back credit cards will enable you to earn points. This will allow you to translate the points into real money. Top cards often get very lucrative rewards compared with earnings from an online savings account or Certificate of Deposit.
Certificate of Deposit – Depositing money for a particular length of time will surely gain return for your money. This option will allow you to keep the value of the interest rates even if something happens to that interest rate.
Money Market Funds – Intended to help people who avoid to lose any of their investments. This will also try to pay a bit of interest for making the cash you park for the fund to be worthwhile.
Preferred Stock – Companies that issue both equity in terms of stock and debt portion in terms of bond, is called preferred stock. This option will be in between common stock dividends and bond payments. Unlike the common stock, the preferred stock is not traded as heavily. This is another way of owning shares from a company in exchange of getting dividend payments.