Any one of us makes an effort for a better future. Thus, we invest to live. We invest time, effort and, of course, money. We invest in areas we know very well or venture on new roads.
When we have a budget and are looking for opportunities to roll money in a business, we automatically think about the risks that may occur. Even if they are less present in our lives (or at least we don’t think about them) the risks are typical for any type of investment.
No one will guarantee free risk investments. Therefore, it is important to carefully consider each step before acting, and this is so that things do not go the other way than we planned. A financial plan is essential in this regard, or he should foresee what would happen in the case of a negative scenario, what the starting budget is and what the risks are.
Let us take as examples some investment methods:
Investments in ETFs are relatively simple. It requires small amounts and lessens the risks of making the decision on what to invest. But do not hesitate to document yourself before you start investing in ETFs and balance the advantages and disadvantages of this type of investment.
Peer-to-peer investments or human-to-human loans – a new concept, emerging with the evolution of Internet platforms, and is a form of online lending without the involvement of banks, but investors. Through a P2P platform, you can become an investor in the credits of others. At the moment, they are working quite well, but the risk is that you will not receive the money back from the platform because it went bankrupt or that the loans you made were not guaranteed and were not paid anymore.
Investments in corporate bonds, through which you have the opportunity to invest in national and international companies, such as banks or energy providers. In their case, you have an attractive interest rate, but they are not guaranteed, which means that the investment risk is high.
Investments in government securities: easy to trade instruments, which bring you relatively low interest and almost zero risks. However, some investors are of the opinion that the state could become unable to pay and thus have a chance to lose the money.
Forex investments – they bring the best returns, but they also involve a high risk. Many people wonder whether Forex investing is truly the most effective way to multiply money.
If we look at the strategies of the great investors like Warren Buffett or Benjamin Graham, we will find that they were based in the first place on very good knowledge. Education is that quality that filters out winners of losers. “In the investment world, courage is the supreme virtue. Then come the right knowledge and a good, tested and proven judgment,” Graham said.
The only zero risk investment is the investment in you. And investing in education brings you the best profit!