Money Services Explained

Money Services Explained

How to Improve the Way You Invest with Three Simple Steps

by Jennie Scott

When you invest your money, it needs to work to your advantage. It's time to take a breather in the investment game right now and focus on improving your game. Here are three steps to improve the way you invest.

Look Out for the Dividends

Check out the companies that pay dividends. This will give you a paycheck that you can save or invest again rather than relying on the buying and selling process. Look out for low-priced stocks—this doesn't mean they're low quality—that pay around a 2% yield to help build your investment.

This does mean you need to research. Not only do you need to check the yield and pricing of each stock (and make sure you can buy enough to make this work for you), but you also need to check the stability of the stock. If it has had a volatile past, it's a stock to avoid.

Consider Peer-to-Peer Lending

One way to improve your investing strategy is to look for short-term options. Peer-to-peer lending is something many investors are now considering because it brings a set percentage back into your account. However, you do need to watch out for the risks of borrowers not paying the money back.

If you choose peer-to-peer lending, consider sites that put you as the lender first. Some will have a buffer they pay you should the borrower not return the money. There are some sites that will do the chasing for you if the borrower fails to repay the amount and will do some checks on borrowers to help you know whether the loans are worth the risk.

Opt for Single Corporate Bonds

Rather than buying shares, you can buy corporate bonds from the companies. These can offer larger yields, meaning you get a guaranteed percentage of pay at the end of the year. The risk is if the company goes bust. You will also need to look into the length of time the bonds mature to make sure you get the most money from them.

When looking into companies, you'll need to check their current business practices and chances of going bust within the time it takes for the bond to mature. You'll also need to decide the amount you want to risk for the returns.

Investing is a game of risk, but you can make that worthwhile with the rewards. Look at the above three options and find the best way to improve your investments through solid financial planning.


About Me

Money Services Explained

Hello, my name is Mark Thomure and this is a blog that I've written about the various types of money services that are available to individuals and business owners. For convenience and in the event of an emergency, it's important to know all the accessible options. Before these services are needed, it's important to find out about the various fees, requirements and terms. I've learned about the diversity of money services by doing research and speaking with professionals. Since many people don't know about the differences in these services, I thought I would make all the information available in this blog. After reading through the articles on my blog, you'll also be able to make informed decisions about the different categories of money services.