Finances, Tips

Safe Investments For Financial Newbies

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There will come a time in your life when you decide you need to get more of a grip on your finances. More often than not, this is when we begin to think about starting a family. One of the main things that people work on when they start to review their finances is to get out of any debt. Then, once they are able to start making some considerable savings, they then think about how to invest their money.

If you are completely new to finances and investing money, you might be very daunted by the whole process. It’s true that it can be complicated and a bit of a risk. As long as you stick to some of the safest investments, though, you can’t go too far wrong, and you don’t have to worry about losing too much money.

Ready to start investing? Here are some great ways into it.

Bank Accounts

There is no safer place for all your savings than in bank accounts. The bank will protect your money and will pay out interest every few months so that, over a while, your money will slowly grow and increase in value. There is hardly any way you could lose money by keeping your cash in the bank. However, as it is extremely safe, there is not much chance of any big returns. In fact, over recent years, interest rates have been pretty feeble. So, if you want to see some significant growth on your money, you might want to find a slightly riskier investment.

Silver And Gold

The next step up from leaving your money in bank accounts is investing in precious metals like silver and gold. These are known as very safe investments as their value doesn’t fluctuate a whole load, even during times of financial turmoil. So, even if the price of your investments goes down at all, it won’t depreciate by too much. There are various ways you can invest in precious metals. You can buy coins from the like of a Scottsdale mint supplier or you can buy stocks and shares in companies that trade in them. You can even buy funds that are invested in gold and silver companies.

Certificates Of Deposit

Another of the safest investments that are available are certificates of deposit (CD). However, as they are very low-risk, that means that they are also quite low reward too. But by now you should have figured out that low-risk means low reward! To be able to invest in these you need to have a minimum of $1,000 to invest. You can increase this amount by $1,000 increments. CDs are very similar to bank accounts but the main difference and benefit is that they pay much higher interest rates. So, your money will grow more than if it were left in a high-interest savings account.

 

So, even if you have never invested any money before, you should find some comfort in learning that the above options are very low-risk. Safe enough for newbies!

Disclosure: This is a contributed post.

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