Do you have some savings and would you like to make a profit from them? If you need to know where to invest money, you have come to the right place!
In this post I am going to talk about the best options to invest your money and start generating extra income.
In this post you will find:
Before thinking about where to invest money ...
It is essential that you take into account certain aspects and concepts that will guide you in your decision to invest money.
Do you know what type of investor you are?
To know what type of investor you are, you must know to what extent you are willing to risk your money. Even though it is not so simple, since items that are difficult to quantify and other subjective can influence, knowing your financial profile will help you to know the most suitable investment for you.
The investor profile will indicate us the link between the risk you are willing to take on and the returns you hope to achieve. Taking this into account, the investment profiles are:
- Risky: He is the investor who already knows and controls the financial world, he is willing to risk his capital with the opportunity to obtain a higher return. You will regularly invest money in equities with short or very short terms.
- Conservative: He is an investor who will prefer to keep his capital safe even when this means a lower profitability. You are going to make investments in fixed income and they are generally medium-long term.
- Moderate: This investor is between the risky and the conservative, because he wants to receive more returns but without risking too much. Your investments in fixed income and equities will be similar, and in the medium term.
And you, what type of investor are you?
Is it feasible to invest without risk?
No, definitely not.
ANDInvestment risk will never be zero. All investments run some risk, but what we can do is reduce it, choosing products with low risk.
Are you going to get money fast?
I am sorry to inform you that if this is your intention, this is not for you.
No, you're not going to get it fast money. Some investments will generate the first income after a few months, others after a few years, it depends on which option you choose.
Remember that investments at the same time may depend on macroeconomic factors and other factors external to us.
You will be interested in reading: How to get quick and easy money in one day
How to select the right option to invest my money?
This decision is personal and will depend on the study you have made of the investment options. This study is done to know the main characteristics As the risk, profitability or degree of liquidity.
You should also think about how much money you are willing to risk, what are your economic objectives, what knowledge you have and your preferences regarding investment control.
If you are a little lost, don't worry, it is normal. I suggest you visit the website of the Organization of Consumers and Users (OCU). In their chapter on investments, they have prepared a tool that advises you what is the investment that best meets your needs. Get to know this tool, doing click here.
How much money should you invest?
As I said above, all investments have risk, some more than others, there is even the risk of losing everything.
This is why, you should only invest the extra money that you have saved and that you can afford to lose without affecting your life. In other words, my advice is to just invest the money that you have left over after covering your basic needs in the future.
It may also be of interest to you: 30 ideas to save money
Should you invest all your money in one place?
I suggest you create a diversified investment portfolio.
In other words, that you allocate different amounts to different options, because this way you reduce the risk of losses. If an investment fails, you have others that can give you returns.
I suggest you read these 10 fundamental rules to invest money successfully
The 17 best options where to invest money
Below you will find a list that I have prepared with the best options where to invest money.
1. Investment funds
Mutual funds is about pooling investors' funds to invest them in different assets, which can be stocks, bonds, ...
The administration of this investment is carried out by a professional.
There are different investment funds that we can enter, according to our profile as investors (conservative, moderate, risky) and the profitability we want to achieve.
In recent years, this type of investment can also be made with robo advisors. Robo advisors are “robot advisors” who are in charge of managing your wealth in an automated way according to your investor profile. Do you want to know which investor you are and which plan is right for you? In less than two minutes you will find out with this test.
2. Invest in Stocks
Shares are securities that some companies issue in order to finance themselves. The owners of these obtain certain rights, such as receiving dividends in the event that the issuing company decides to distribute them and obtain benefits.
Investing in stocks is about buying these securities and then selling them at a higher price, and / or receiving dividends.
Shares regularly sell quickly, making this a highly liquid investment. At the same time it has a high profitability potential in the medium or long term.
However, it has a high risk, since this market is highly volatile and is affected by economic, political or social factors that influence the price of shares.
Although you do not need to have a lot of capital, you should pay attention to the payment of commissions to a professional for each operation (to assess whether or not a small investment is profitable, as an example). In the event that you want to do it on your own, so that you make a correct investment in shares you need knowledge in this field.
3. Invest in Bonds
Bonds are debt securities that some companies, governments and other entities issue in order to finance themselves. They give the owner the right to receive periodic interest payments, which are fixed in advance and are constant over the life of the bonds.
This investment is about buying these securities in order to get an income, with periodic payments of interest.
The bonds offer a high profit potential, but less than stocks. At the same time here you don't need technical knowledge to invest.
Investing in bonds was considered low risk, despite everything, given the latest financial crises, investors are now on the lead. The main risks of an investment in bonds are: interest rate, credit, inflation and liquidity. At the same time, the duration provides a measure of the risk linked to changes in the yield of a particular bond: the longer the duration, the greater the risk, and vice versa.
4. Invest money in binary options
I personally do not recommend investing money in binary options without having knowledge. Even though it is becoming more popular and seems very simple, you can lose your savings, and this usually happens.
This investment mechanism is about choosing an asset or a currency and betting or predicting if its price will go up (CALL option) or down (PUT option). Similar to a bidding system and where speed of administration is essential.
In a favorable operation you can earn between 50 and 80% in profits, undoubtedly a great profit ... BUT otherwise you can lose all your investment. That is why this option is high risk and where the time frame is very short, sometimes the operation can last a couple of minutes.
On the Internet there are many pages to invest in binary options. If you need to invest here, I recommend choosing a quality one that is authorized.
You will also be interested in reading: Binary Options: Scam or Real Possibility?
5. Fixed-term deposits
This option is the most common where to invest money, among those who want security and simplicity.
The operation is simple. The financial institution offers you X profitability in exchange for keeping X amount of money for X time in said bank. You will charge the interest once the term has expired.
In the case of needing the capital, you could withdraw it but later pay a penalty that does not affect the principal.
It is undoubtedly one of the options of safer investment, because you know the interest you are going to receive and the term of said recovery. At the same time you don't need great knowledge about finances, because this it is managed by the financial institution.
6. Microcredits
Microcredits were born as an alternative to traditional banks in developing countries for social purposes.
What are microcredits?
Are small loans that are granted to groups with limited resources and who have difficulties in obtaining a loan.
Initially they were aimed at women with few resources and who wanted to start a project or meet their needs. But at this time, microcredits are also granted to cover urgent needs that can be covered but not at that time.
If you are interested, you can go to a specialized financial institution, either online or in an office to request more information. I suggest that you do not invest all your capital in a single project, but that you use it to finance several projects, in order to reduce risks and achieve better returns. Think that if a project does not work, but you have invested in five, your losses will be less.
This investment can be made short, medium or long term, according to the project you choose. But I recommend that you look for investments with yields at different terms, to get income at different times and you can reinvest according to the evolution of the market, or basically enjoy the benefits.
If you need to know more about how to invest in microcredits, I leave you the link to the Microcredits blog, click here, you will find interesting information and some platforms where you will be able to invest.
7. Invest in Crowdfunding
Possibly this sounds familiar to you, doesn't it?
And it is that more and more people talk about crowdfunding, such as way of investment and means of obtaining financing.
(*17*)
Invest your savings in projects
Crowdfunding is a means of collective financing, which is regularly done through online platforms, in other words without financial intermediation, and is intended to finance a specific project. The objective is to connect project promoters with potential investors or fund providers who hope to achieve a return.
exist four types of crowdfunding, according to the expected reward for financial contributions:
- Crowdfunding. You are expected to receive a reward that can be in the form of a product or service.
- Crowdinvesting. The consideration is through shares or participations of the company. It is expected to achieve benefits in the medium or long term.
- Crowdlending. The contribution is made in exchange for an interest on the borrowed money, this interest rate will vary according to the amount borrowed and the repayment term.
- Crowdonation. Contributions are made selflessly and no type of reward is expected.
The Crowdfunding operation is quite easyEven though it will depend on the platform where you do it and the project, it is regularly the following:
- The entrepreneur or project promoter sends his project idea to the platform, with the detailed description, amount required, type of crowdfunding, etc.
- The platform is in charge of evaluating the project and after this it is published. The publication will indicate the time that people have to invest money in it.
- Once the announcement is made public, the entrepreneurs will be in charge of promoting it to obtain the necessary financing.
- When the term ends, the project is closed and the financing obtained is verified.
Here I leave you one guide to crowdfunding platforms in Spain, which Crowdacy has produced.
At the same time, if you want to know more, you will find in this blog different interesting articles about crowdfunding and different projects. I recommend it to you. 😉
8. Real estate or real estate
This investment of money is about buying a property, it can be a house, apartment, commercial premises or land, and then sell it at a higher price, and / or rent it and get a rent.
Investment in real estate
Even though it may seem like a simple operation, it is necessary to have a good capital for this investment and at the same time good market knowledge in order to correctly select the property to be purchased.
On the other hand, it is an investment safe with low risk and profitable, it is difficult for real estate to lose value over time, and in the event that it loses it, it increases again.
It may be of interest to you: 13 websites where you will be able to earn money with your house
9. Angel investor or in English "Business Angels"
Invest as an angel investor It is about finding ideas that are going to be launched on the market or recently created companies, to invest your money in them with a shareholding, and thus help them grow.
The idea is to subsequently market these shares to make a profit. In general it is a long-term investment.
The risk here is very high, because it is not possible to accurately predict the success that a company or idea will achieve or not. Most companies go bankrupt in the first 3 years.
If you are interested in investing in new and innovative ideas, I recommend you read this post by my friend Agustín Grau: How to invest money in Startups. I also advise you to look for public or private centers that put you in contact with entrepreneurs who want financing for their projects
10. Invest money in a business
This is about start a business from scratch, or buy a business that is running or finance the business of a third party.
The purpose is to obtain benefits from a percentage of the shares or, if in the future you sell it at a higher price than the purchase price.
Invest your money in your own business
Are you clear that having your own business is where you intend to invest your money? Yes?. So these are some general recommendations that I think you should pay attention to:
- Find out about the different opportunities to start your business. You should also find out about everything that has to do with your business idea.
- The choice of the business model that you are going to follow is essential. Review the information you have obtained in your research, the knowledge you have (by experience or studies), your skills and also the time you have to start it up and later to dedicate yourself to it.
- Make a correct organization of the tasks to be carried out, it will help you obtain your objectives and goals.
- Properly plan both the functional part and the budget that you have at your disposal, so that you do not get any unpleasant surprises.
- Make your business known, there is no better commercial promotion than word of mouth. Use social networks, your circle of friends and acquaintances to publicize your business and have everyone help you spread it. If your business does not become known, no matter how good it is, it will not be successful.
If you already have an idea, and you want to know how to make a business out of it, I recommend you read All the steps to turn an idea into a real business from the Emprendedores.es website. Another recommended reading of the same website is 50 tips to undertake.
This investment option offers high profitability if your business works correctly and is successful, but at the same time has a high risk. On the other hand, you can have the total control of your investment, when it consists of your own business.
11. Get a franchise
This is an option where to invest money, for those who are looking to start their own business.
However, investing in a franchise requires both money and many hours of work.
What is a franchise?
It is the right that a company (franchisor) already defined in the market gives you so that you (franchisee) can open a store with their brand.
There are franchises for everything or almost everything: restaurants, travel agencies, hotels, ... even hospitals and financial institutions. There are also franchises of business ideas, in other words, they do not have their own premises, but you acquire the right to use the idea.
The advantages of obtaining a franchise are clear, including: the strength of the brand based on the credibility and loyalty of its customers. This is already a high probability of success.
However, you shouldn't just jump in. Before, a research study has to be done to assess this option as the best form of investment.
You should pay attention that when you acquire a franchise, you will be supervised and guided by a parent company. You cannot apply changes on your own, they must be approved by the parent company and you may not get their approval. This will limit your creativity, it is not serious, it is true, but you must assess if you can work therefore.
If you need to know more especially this, go read my post dedicated to the subject of franchises.
12. Invest money in Gold
Invest your money in this precious metal, it is about buy gold to sell it later at a higher price and thus make a profit.
You can get gold from two ways:
- Direct: gold coins or gold bars, in other words, buy physical gold. But beware, this needs care, maintenance and security. If you leave it in custody in a bank, it can be a high cost.
- Hint: gold certificates of deposits, investments in specialized gold funds, shares of mining companies.
This investment can be quite profitable if you know when to buy it and when to sell it.
If you are looking for a short or medium term investment, it is better not to invest in gold because of its instability.
However, it is a good option for investments to long term, due to the growth trends in the demand for gold and therefore the value is also increasing.
At the same time you don't need great financial knowledge To invest in gold, it is a simple operation.
Regarding security, a fairly safe investment is contemplated, since the value of gold is not easily devalued because it is not regulated by any government but depends on supply and demand. As I have said before, the demand for gold tends to be higher.
Another advantage is that, at any time you can sell it, and you should not go through an intermediary to pay a commission.
13. Invest money in Silver
Invest in silver, it is an option to gold.
This metal unlike gold that accumulates; it is used for industrial consumption and is running out, which increases its value. Even faster than gold.
Right now the acquisition price of silver is low, but the value is expected to increase considerably. It is a good investment possibility.
The alternatives for investing in silver are similar to those of investing in gold. You can buy silver bars or coins, silver certificates of deposit, or invest in stocks of companies associated with silver mining.
14. Invest money in Artwork and collectibles
Where is this?
Simply, it is about buying paintings or sculptures by artists known or emerging.
But they can also be other types of objects such as: stamps, coins, jewelry, ... In other words, objects that are expected to increase in value over time and thus be able to sell them at a higher price than the purchase price.
Even though it may seem like a simple investment, keep in mind that it is not easy to obtain a buyer. It may take time to sell them. But in the meantime, you could rent them to a gallery or museum and get a rent for them.
This investment can be quite profitable in the long run. And if you like art, you are certainly going to enjoy having a work of art or a collector's item in your possession.
The biggest drawback is that they require a lot of care and maintenance. They have to be well preserved so that they do not lose value and are not destroyed. At the same time, insurance often has a high cost.
If you are considering this investment, EYE to scams, so you don't buy a fake. I suggest you read: The 13 Most Common Internet Scams!
15. Invest money in theater or cinema
This investment it can generate significant benefits.
But of course, for this you have to invest in the correct movie or play, and this unfortunately no expert can tell you. The Risk in this investment is high.
You could have hit the highest grossing movie and in that case you will have high and even constant income. If, on the contrary, the film or the work has been a failure, you could lose all your investment.
Nobody knows how the public will react. This investment is regularly made short term.
16. Invest money in high-end wine
Some experts promise to invest in high-end wine it is more profitable than in art. Even when I warn you that you are not going to become a millionaire with a bottle of wine either.
Some experts promise that investing in high-end wine is more profitable than in art
But why invest money in wine?
There are Various reasons why you should consider this option to invest money.
- The value of wine increases just by aging, even if you store it underground.
- The value can increase, even as its flavor erodes over time and is no longer drinkable. Even though it may surprise you, it is true and it is what differentiates it from other assets. With the passage of time these bottles become "rare" because there are perhaps few or no other bottles like that. So wine lovers or collectors are willing to pay large amounts of money.
- Being a consumable product and increasing demand, stocks (bottles) decrease. There is a limited supply and this affects the price, so it increases.
- The price of wines increases in the same line that wealth increases, in other words, if there are more people who can afford high-end wines, their price will rise.
- Moreover, this sector is not affected by economic recessions, interest rates, political aspects or by fluctuations in the stock market.
- You do not need to have financial knowledge to invest in wine, since it is a tangible product and can be obtained easily.
For all this and other reasons, this investment is quite stable in the medium and long term.
If you decide to invest your money in wines, remember that it also has its risks, even if they are low, but they exist.
At the same time, you have to select very well where you are going to buy, since not all wines accumulate value. Make sure you select the right wines and pay the right price for them. Even though these are regularly going to have a high price.
17. Invest money in… IT
Yes, as you have read, an investment option can be yourself…. What do you mean Jimena?….
What I mean is that you can put those savings into your training.
Perhaps a specialized course in a subject, or a course that allows you to update your knowledge or a course that allows you to develop your skills.
When you invest in your training, you will receive new knowledge in return.
I consider this option a good choice whether you are working or looking for a new job.
At the same time, it is an investment with low risk, because it will help you develop your professional career and / or start a business. In no case is it a loss.
Regarding the reward, when you invest in your training you will receive new knowledge in return, you will develop your skills. You will have the option of seeing this reflected perhaps in salary increases or in the development of a project.
Even though it is the last option on this list, it does not mean that it is the least important. Rate it like all other options.
It may be of interest to you to read: 60 reliable ideas to generate money.
Other ways to earn money ... passively
Most of the ideas that I have shared in this post can generate passive income.
That would be cool right?
But yes, of course, there are also other alternatives to start making money passively, I'm talking about the Infoproducts.
You know that they are? Agustín Grau in his course “Create infoproducts and generate passive income”He tells us everything about infoproducts and how they can become our source of income. I recommend it 🙂
Access the course here "Create infoproducts and generate passive income". At the same time, just for being a reader of this blog, you have a 30 % discount using this code: 
You will also be interested in reading: Do you know what passive income is?
Can you make money without investing money?
Yes of course!
If you need methods on the internet that you do not have to invest, you will find several. Of course, your earnings will not be the same as the investments I told you about before.
Some of these methods are very popular for being simple, but don't expect to make yourself a millionaire. Here are some ideas:
- Paid surveys. Pages recognized as i-Say (only in Spain); Toluna and the LifePoints website (in Spain and Latin America) pay their users between € 0.50 and € 2.50 to answer some questions about products or services. In this post you will find more information about this method and other recommended pages.
- Advertisement. We are used to seeing commercial promotion, but do you get paid for it? Neobux is one of the websites that has been doing it for several years. I'll tell you more in this post.
- Mini-jobs. You can complete your income from the above methods by doing small tasks. As an example: verify company information, recognize objects in images, etc. You can find these tasks in Clixsense or in Clickworker. If you need to know more about this idea here you can read more.
In summary…
It is essential to carry out a good study of each of the options before choosing where to invest money. Because this way you can make a correct choice according to your economic objectives.
I hope this information has been useful to you. 🙂
Remember to leave your comment or suggestion below or if you prefer, through the contact form 😉
Photos: Pixabay
