If you have some money spare and are wondering on what to do with it, you will need to think wisely. Choosing investments can be tough, especially when your hard-earned savings are involved.

Most financial investors advise you create a portfolio of investments so if one doesn’t do so well, you aren’t left in the lurch. So rather than placing all your eggs in one basket, here are three of my top ideas for beginner investors…

 

Bond or CD accounts

Unlike other savings accounts, bonds and Certificate of Deposit accounts pay higher interest rates. They allow you to store large sums of money with ease. The catch is that you aren’t able to touch the money for a while.

Of course, it’s your money so you can ask for it back if need be, however you can lose all the interest gained on it should you crack earlier than the contracted date.  Terms can last from three months to five years so there is something for everyone.  These can act as a friendlier investment than stock shares.

It could also be worth investing in a trust for your children if you want to invest in their futures. Plain old saving is never going to go out of fashion! There are plenty of accounts which don’t hold you to any contracted time frames or amounts.

 

Penny shares

These are more of a thrill and a gamble so best for having a little fun than for seriously investing money, especially if you don’t know what you’re doing.

Investing a range of different companies and services is always a better idea than betting on one alone.  Most shares can be bought via the Alternative Investment Market. First you need to choose carefully and decide on whether you are a play-it-safe investor who invests in steady bricks and mortar companies, or if you want to support the newest internet company going.

Once you have chosen a range it’s a matter of investing via a legitimate investment site and watching with bated breath.

 

Your home

Investing in your home seems like one of the best ideas; it is your castle after all and should something terrible happen and housing prices drop, at least you’ve enjoyed your fancy new decor.

Double glazing your windows and fitting pvc doors could help with energy saving, reducing your bills. Adding insulation into your loft and ensuring that all your electrics and plumbing is up to scratch can be a great start too.

Cosmetics like paint and rugs can come later; the real investment is the structure and foundation of your home. Once that’s sorted, it will be much easier to put all the extras in. If you decide to make your home ready for sale, remember to keep colours neutral and classic. Fads go in and out of fashion and never suit everyone’s tastes.

If you have money to spare further, arrange a meeting with your mortgage advisor and see how you can pay off your mortgage earlier. Some banks and branches will offer you a full pay up and get out scheme. Of course this will cost you extra money in paying a fee to leave.

Otherwise, try seeing what the maximum overpayment you can make each month. You’ll pay more in the short term but save potentially tens of thousands of pounds interest in the long-run!

 

Have you recently made a worthy investment? Please share your thoughts.

Image by Kratochvil

Chris Fallen is a middle aged rocker with a love of real Ale! He keeps busy with his wife, Suzy and three mischievous kids. He is an IT nerd and Eurocell blogger by day and in his spare time likes to make stuff out of wood in his shed.