All investing has a certain level of risk, which is likely one of the biggest obstacles for beginners. Overcoming the fear of losing funds involves an in-depth analysis of potential investments. However, since it seems like a time-consuming activity, people may dismiss the option to invest.
Furthermore, the digital space brings a variety of potential sources for additional income. Again, the looming fear of failure or scams could discourage individuals from exploring them, too. This article aims to ease your mind by introducing low-risk investment options and trusted ways to earn money online.
Risk tolerance: How risky do you want your investment to be?
Everyone's risk tolerance may vary, significantly impacting their investing plan. One option is to complete a quick quiz, offered by multiple investing platforms, to determine your preferences.
For example, your investment opportunities depend on when you want to withdraw the money and spend it, your experience, and your current and future sources of income. The combination of these answers determines the investment options most suitable for you!
The golden rule for any investment is to use the funds you do not currently need. You should maintain a separate fund for your usual spending, in case your investment goes awry.
Safer investment options for beginners
Choosing safer investment opportunities also means that it’s a more gradual form of earning. For example, high-yield savings accounts are ideal if you have money just sitting in your bank, and you do not want to invest in anything particular. Unlike regular savings accounts, they have higher interest rates, meaning you earn more over time. However, it does take time to see profits, and you are at risk of inflation.
Generally, these are the best options for safer and less intimidating investing:
- Certificates of Deposit (CDs). It refers to supplying your funds (or locking them up) for a specific period.
- Treasuries. It refers to lending your money to the government.
- Bond Funds. In this case, you have a set of investments in different companies, ensuring the diversity of your portfolio.
- Annuities. It means lending your money to insurance companies and receiving regular payments in exchange.
- Preferred stocks. These are less risky as their worth doesn’t fluctuate as much.
- Buffer ETFs. This refers to a basket of investments that you manage. So, you juggle multiple opportunities, and if the market drops, you have more options to recover.
- Divided-paying stocks. In this case, people owning stocks of a particular company regularly receive payments for their investment.
With all relatively safer investment opportunities, you should understand their liquidity. Some options restrict access until you can withdraw them. If you want more control over your funds, CDs might not be the ideal choice. Instead, you can consider dividend-paying stocks that let you sell them at your convenience.
Earning online with different investments
Besides using more traditional investment opportunities, you can invest in yourself. That means using your funds to start businesses or purchase equipment or tech for producing digital or physical products. Such options, without a doubt, have their risks and require more extensive knowledge of managing your endeavor.
Besides that, you can opt for safe ways to earn money online that do not require investment at all. For example, freelancing has been a popular choice, followed by various creative careers (such as content creation and selling). Besides that, you have options to get paid for brief assignments and jobs.
That could relate to working as a digital assistant, picking up and delivering groceries, or even connecting with people who request help around the house (cleaning or handiwork). Furthermore, you can join various micro-task platforms that offer a variety of assignments. They might involve answering surveys, participating in market research, or testing products.
Safety tips for investing and earning online
Investing and money-making opportunities are popular baits that scammers tend to use to trick people. So, it’s best to be cautious, use trusted sources, and reject opportunities that promise high earnings at low risk. If you’re opting for safer investments, it’s natural that income will roll in a lot more slowly. So, there’s no such thing as a quick return with no risk. If you notice such offers, treat them as suspicious automatically.
The same principles apply to online-earning opportunities. Many of them are fair and trusted, but always double-check whether a particular site can be trusted. For example, peer-to-peer lending platforms must be properly vetted. After all, a few suspicious ones have closed, meaning specific platforms can slip through the cracks for quite some time.
Conclusion
It’s true - investing can be achievable for anyone. Despite the seemingly high barriers, the current resources and more beginner-oriented options make it easier to start. So, even without significant investing experience under your belt, you can make a profit. Of course, stick to more shielded opportunities and only use the funds that you can spare. When making money online, always look for trusted sources and choose jobs that avoid suspicious payments or conditions.
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