If you have some extra cash and you are looking to invest, you will probably want to know the answer to the question “what is the best thing to invest in?”

The answer, however, is a complicated one.

While no one can tell which company, product, account or stock is the absolute best to invest in, you can work out what type of investment is good for you and choose where to invest from there.

 

There are several different factors that can help you to decide what to invest in. The following are some guidelines to consider when making your decision:

 

Find a strong company

If you are thinking of investing your money in a company, it is important that you find the best possible company to invest in. A strong company that is established, has a good reputation, a good track record, regular annual growth and a strong leadership system will give you the best return on your money.

Do some research on a few companies that you have in mind and ask for company information to make sure that you have done all of the necessary research.

 

Look into precious metal

Precious metal has always been considered a valuable asset. You could consider investing in gold or something similar, but the problem is that the values go up and down and are incredibly volatile.

 

Save money to free up more money with which to invest

It is important that you can afford to invest money before you decide to invest your money in a specific company or investment fund. It can be relatively easy to free up some extra cash for investments if you are careful with the money that you spend.

Save on groceries by limiting yourself to buying sale items or using rewards points. Stay away from buying items on credit to avoid paying interest.

Get a free messenger service on your cell phone to avoid spending airtime. Cancel your DSTV subscription for a while and don’t buy clothes or other unnecessary luxuries for a while.

 

Consider investing in real estate in a growing area

Real estate is one investment area that generally tends to pay off. Because we all have to live somewhere, it makes sense to pay off your own bond rather than pay rent to someone else for the same purpose.

If you have enough excess money, consider buying a property in a good area that is showing a lot of growth. If there are developments going up and businesses moving to a specific area, get in on it while it is still in its growth phase.

 

Consider investing in bonds

Municipal bonds are free from taxes and you will be saving money on them. They make good long term investments and are considered safer than most other types of investment.

 

Research investment and consider studying a course to help you make your decision

Another good idea is to research investment as much as possible before making your choice. There are several books that you could purchase in either ebook or hard copy format to brush up on the skills and knowledge necessary to make smart investments.

Another option is to do a course in investment to teach you the necessary skills.

 

Wherever you decide to invest, it is a good idea to make your choice carefully. Never invest all of your money in one thing or company and make sure that you always have some money saved separately to your investments.

Constantly rethink your investments, speak to a financial advisor and research investment in general. Keeping on top of what is going on in the investment world will help you to make the best possible choices, grow your portfolio and get good returns on the money that you put into your investments.

Most importantly, think carefully and go slowly. Whatever the movies may have taught society at large, investment is not a get rich quick scheme.

The answer to the question of how much should you invest depends on several factors. These factors include what you earn, what sort of investment you are looking to make, what sort of return you want to see and what your financial situation is looking like.

However, if you are thinking of making a single one-off investment then there are different factors to consider.

It is very important to get professional guidance and advice for your particular situation as investing can be tricky. There are many other tips and trips relating to working out who you should invest with and what you should invest in and these are all equally important.

 

How much should you invest if you are thinking of investing every month? What to consider:

The question of how much you should invest relies entirely upon your unique situation. The following points will help you to work out what the right amount is for you.

 

• What you earn

What you earn is probably the most important factor in deciding how much to invest. You must be able to cover all of your monthly expenses and still have some money for your own spending.

The money left over can be divided into savings and money for investing. It does not matter how little you can spare for investing as over time your investments will grow and at some point in the not too distant future, you will have a large investment portfolio with quite a bit of money invested.

You should never invest more than you can afford as this could prove disastrous for you financial situation.

 

• Why is it important to save money when you are investing?

The money that you put into your investments is money that you usually will not be able to get hold of in short notice.

Also, because most investments hold some level of risk, your money could have decreased. If you have an emergency expense like a vets bill, medical expense or a vehicle that needs to be fixed, you should have a savings fund that you can dig into for emergencies. It is also a great idea to pay for holidays out of your savings fund.

As mentioned above, should you need excess cash quickly, you must have a savings account that you can get it from as you will not be able to rely on getting your money out of your investments immediately.

 

• What you spend

Your expenses every month, including your personal spending money and what you put in your savings account, will also affect the amount that you should invest. If your expenses are usually more or less the same every month, then you can rely on investing the same amount every month.

However, if your expenses differ greatly, you will have to work out what you invest anew every month.

 

How much should you invest if you are thinking of making a single, one-off investment?

This depends entirely on how much money you have on hand. It is never a good idea to invest all of your money in one place, particularly if you have a large amount of money that you would like to invest.

Putting lesser amounts in different investments is the best way to go about this. Do not, however, throw your cash into funds without thought, make sure that you understand exactly how the company or investment fund works, read the fine print, get professional advice on what is the best way to invest and use your head.

If you have a large amount of money to invest and you already have a nice amount of money in your savings account, you could consider investing the whole amount of excess money.

Make sure that you invest at least a third of it in low risk investments where you are sure to at least get your money back. If you do not have a savings fund, put at least half of your money into savings and invest with the rest.