Investing your hard-earned money in places where you can possibly earn some profit on top of it is a very tempting idea, but when the phrase “hard-earned” is in the statement, you can imagine how most of us will be hesitant as well.
So for those among you that wish to earn some profit with minimal effort by just investing the money they already have but at the same time do not want to run the risk of facing unspeakable loses, here are some of the safest places to invest your money into for profits.
1. High Interest Savings Accounts
Saving accounts to most among us might only be known as a place to keep all of our hard-earned money for safe keeping until and unless we have a need for using it.
However, in addition to being a place to stash your earnings, some saving accounts are also known to provide you with a certain interest. There is not too much contemplation involved in this trick for earning a profit.
It’s a simple system. You get paid a certain interest just for keeping your money in the account. It is the safest possible investment with the maximum guarantee of profit hence it is all benefit and no possibility of monumental losses.
2. Dividend paying stocks
One of the relatively safer even if not completely locked down safe and secure type investment is the stocks that pay relatively decently sized dividends.
If you are looking to invest in the stock market and find some stocks which are performing more or less in a similar fashion than simply pick the ones which offer some payout in the form of dividends every year.
Dividend paying stocks also allow you to diversify your investment, so failure on one end will not lead to a complete downfall of your financial situation hence making it a relatively safe investment.
Ryan Scribner has some ideas for you if you are looking to learn more about how dividend paying stocks work and whether this is the investment that is right for you and your money.
3. CD (certificate of deposit)
Certificates are generally the most dull and boring form of investments; however, the word boring more often than not equates to the word safe.
Risk brings the “fun” I suppose, but not all of us wish to have fun with our hard-earned savings. A certificate of deposit allows you to deposit your money for a fixed time period after which you get a profit.
This profit remains a complete surety regardless of most interfering factors and how they move around during the fixed time period agreed upon.
The amount of interest that you are paid is dependent on the time period for which the CD is deposited. So the longer you are willing to wait for the more interest you make on this deal. In this way, there are plenty of advantages to a certificate of deposit.
4. P2P lending
P2P lending stands for peer to peer lending. This allows you to interact with various companies just like in the stock investment area, but instead of purchasing stocks in a company you will be lending your money to these companies so that they may fulfill their needs and just like any loan pay you back with interests.
The investment in this area can even be as small as $30, and you do not need to invest all your money into a single loan, you can lend your money into several places allowing you to diversify and ensure that one stroke of bad luck doesn’t leave you completely financially crippled.
There are several websites available out there that provide the service of connecting the lenders to the people who need the loans so that the system is properly regulated.
5. US Savings Bonds (SERIES EE)
US savings bonds are a very stable investment as most of you have probably already heard, but there are two types of bonds in this region. One is the Series I bond, and the other is a series EE bond.
When safety is in question the bond to opt for is the series EE bond as they have a fixed rate of interest which is coupled with your bonds when the month ends.
The part that makes it a safe investment that is bound to yield some form of the result is that it is backed by the US federal government and that the treasury has guaranteed that upon being held to the time of maturity the bond will double in value. The value and maturity period of your bond can be verified at some official government websites.
6. Bank bonuses
Bank bonuses are again one of the more boring sides of investing, but as explained before boring translates to low risk investments which is what this post is focusing on.
Bank bonuses are small-term investments which lead to relatively small profits, so this is really for those times when you have some spare money lying around that you aren’t doing much with.
These bonuses differ from bank to bank but usually serve as an incentive for you to sign up with the bank. You deposit some amount of cash for a fixed length of time usually 6-18 months and viola you are rewarded a bonus.
These bonuses also vary from time to time so here are some of the best ones for the current time period.
7. Preferred stocks
Preferred stock is a stock that offers both the stock and the bond portion of the investment. It is different from regular stock in that it offers much less risk than regular stocks and you also get dividends. Hence it is must include in the list of safe and profiting investments.
Which Investment Strategy Will You Try?
In conclusion, while investing the money that you have accumulated over long hard work filled years is a scary concept as you just learned there are relatively safe ways to make a profit from your earnings as well so don’t just let your saving lie around, use them wisely and venture into safe investments now.