When the word investment is used, most people think about people or businesses with lots of money that can afford to put millions of pounds or dollars into a specific venture. However, the reality is that anyone can invest, and that individuals who seek out the best personal investment options are likely to see themselves financially better off in the longer term.
What are the smartest personal financial options people should be looking for?
Savings Accounts
While distrust of the banking system is still high, there is no question that savings accounts can prove a safe and effective way to make a personal investment. Tax efficient accounts such as ISA’s continue to be popular, while fixed term bonds giving a guaranteed rate of interest are also worthwhile.
It is worth noting, however, that the key word from the above paragraph is probably “safe.” A savings account might give you a safe haven, but given the low interest rates worldwide right now they aren’t going to grow your wealth too much in “real terms.”
Private Equity Investment
Individuals who aren’t too risk averse and are looking for potentially higher returns could be well suited to private equity investment. The private equity marketplace is another area where many think you need to have a fortune in order to get involved. However, there are plenty of opportunities for individuals to contribute even small amounts of money to private equity funds.
If you’re unsure of where you’d like to invest, it is perhaps worth looking to use social media to connect with individuals who work in the finance industry to see what they’re saying about economic and market conditions.
Wealth Management
Anyone who does have larger sums of money might wish to consider using a wealth management company such as ACPI. Such firms will not only help to manage your wealth but also to grow it by advising you about investments and even making them on your behalf.
Wealth and asset management companies can perform a whole range of tasks, from something as simple as making sure you’re getting the best terms of service from your bank to choosing high value investment opportunities for you to explore.
Starting a Business
Admittedly, this is a little left field in comparison to the other suggestions, but if you’re passionate about something and are able to make it work as a business, you should seriously consider going for it.
Doing this, you’re investing your time, and probably some of your own money, too, into a business but the rewards if successful could potentially be huge.
The Best Option?
The best option depends on your own individual circumstances and what you’re looking to achieve. Starting a business, for example, isn’t for everyone, while some people might be put off a wealth manager or private equity firm because they don’t want to pay the fees.
Think about the option that is best for you and consider the path you want to take when it comes to growing your personal wealth and improving your financial outlook.
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- License: Creative Commons image source
Theo Murr is currently studying business marketing at University and is heavily considering the possibility of moving into the financial sector when he has finished his studies. Theo lives in London with his partner and their cats.
