Investing for a Rainy Day

I know, the personal finance talking heads tell us to “save for a rainy day,” but isn’t investing doing just that? It is if your investments are smart. Even saving money gives you no guarantees that something won’t happen. If you put your money in a savings account you risk the potential of identity theft and often in that situation all of your money is not recovered. If you keep your rainy day funds in a safe in your home you are risking a break-in where a thief runs away with all your cash.

Research Your Investment

The way I see it no matter what you do with your money while attempting to be smart with it you are taking risks. We all know how to save money. We use coupons, have become more energy efficient, shop at thrift shops and all of the daily things. But not everyone knows how to invest their money. It is easy to talk to a broker and take his advice, but maybe you should do a little research on your own and take your ideas to your broker.

Stock Market

Investing in stocks has been an iffy road to take since the crash of the market a handful of years ago. This has caused those with less than extensive knowledge keeping their money out of the hands of Wall Street. Stocks aren’t a bad idea, as the economy seems to be getting a boost at the moment. But when looking into what stocks to invest in, think about long term returns versus the quick return. Energy is something we will always use, so putting your money into companies like ConocoPhillips may be a good option.

Precious Metals and Coins

While gold and silver prices recently took a hit, world coins are still a good investment for those who are into collectibles This is again is a long term investment and requires some research. You can opt to invest in coins that are minted in gold and hold no monetary value with the exception of the gold in itself. Or you can look into buying coins that are historic and dated back centuries from around the world.

Bonds

You can also put your money into bonds. This type of investment basically leaves you lending money to a company or in some situations to the government. In doing so you will see a return on your investment with a fixed interest added in. Investing in an individual company will generally offer a higher return you are presented with bigger risks. Lending to the government is a safer route, but you won’t see as much of an increase.

Real Estate

Another investment in these economic times that could see potentially high returns is real estate. It is a buyers’ market and if you have the ability to hold onto an additional property for a few years you could see a big return as the economy turns around. In the meantime you can rent as rental properties have become more popular over the last few years. By increasing the rent a little over your mortgage you will quickly be seeing an increase in your funds. But this comes with a big risk.

I am by no means recommending that you don’t keep filtering money into your savings account for emergency repairs or the days that you see a drizzle. I am just saying that by invest your money you will be able to prepare better for the future. You will also have the potential to see larger growth than you would if your money is sitting in an account or worse a safe.

*This is a Guest Post.  All opinions expressed are those of the Authors.