With the current pandemic restricting a lot of us from our normal schedules and keeping us indoors, some might find that they have a bit more time and money on their hands in order to pursue some ideas or projects they’d had in mind for a while.
Got some money saved up, and considering investing for the future? Here are some of the first things that you might want to think about when investing. Read on to find out more!
Do you have any other commitments that you should sort out first?
It’s true that investment can help you to grow and flourish your financial portfolio into something greater, but if you have any outstanding debts or financial commitments, it’s recommended if possible that you take some time to iron them out first. This will give you a much better sense of confidence and calmness going forward, knowing that you’re starting afresh rather than having past burdens looming over your shoulders. If you’re struggling with your finances, perhaps consider getting some financial advice from a professional before getting started.
Tip – If you’ve got quite a bit on your plate in your normal life, and don’t know if your schedule will afford any more new endeavours, then you might want to think about a hands-off, managed investment strategy, such as a property investment like the ones offered by RWinvest. Managed buy to let investment allows you to focus on your normal life, while a designated company handles the tenancy and day to day operation of your apartment or investment home, taking just a small percentage of the rental yield that you take on a regular basis.
Can you feasibly afford to invest?
What you’ll quickly learn when doing your research is that investment is quite the broad term, and there are many different investment types, at a range of different price ranges. See which ones apply to the sort of capital that you have saved away, and think of a round figure that you’re comfortable investing for your future.
Tip – Want to test the waters first without actually putting in a penny? There are a range of different apps and games that you can download to simulate an investment before actually going through with it. The Big Investment blog has a piece on some of the best financial apps of this sort if you’re interested in finding out more.
What type of investment should you go for?
Again, this question depends on the level of capital that you have available, and what sort of market that you want to get involved in. If you’re someone that wants to actively monitor their investment portfolio, and micromanage it every step of the way, then you might decide to invest in some stocks using a free trading app, and keep an eye on it periodically as you go along. Again, if you don’t have the time to be watchful of your investments or don’t want to handle the stress, it might be a better idea for you to go with something a little more hands-off, such as property.
Remember – Investment is more often than not a long-term commitment, but some investments are more slow-burning than others. This isn’t really a get-rich-quick scenario, and so you should choose an investment with a clear exit strategy in place if you want to easily (or even prematurely) cash out before too long.