(Savings) Investing / Investing without Risk

Author: |
invest invest risk

Do you have savings that you want to do something with?

Because the interest does not earn you anything, does it?

Or are you already at the limit for wealth tax?

Then investing or investing is a good option, but how do you minimize the associated risk?

In this article:

Investing and Risk

You probably know the warnings : "Be careful, investing involves risk." Or: “You could lose your investment or part of it”. That is a truth as a cow, because risk and investment are always linked. You simply cannot invest without any risk!

The purpose of investing is to make a profit . In other words: that your money is worth more. This only works by taking advantage of price movements due to supply and demand and buying and selling at the right time. If you do this correctly, you are in the plus, if you do it wrong, you are in the minus. Behold the risk factor.

Investing is not the same as making money!

Precisely because of this risk, you can never see investing as a way of making money. Are you looking for a way to do more with your savings or do you really want to invest consciously, then read on. Are you looking for a way of earning or generating income, then you better have a look at our page about reliable online money making .

Investing versus Investing

Investing is a form of investing in which you lock up money for a short or longer term in order to make an (uncertain) profit. But there are more types of investing than investing, where you run little or no risk. That is an important distinction to make. Some interesting examples of such investments.

Solar panels

This is our favorite way to invest. It has a high return (easily 10-15% on your investment), it is super durable and you hardly run any risk because you get a free warranty on the installation, all parts and the delivery on solar panels.

In other words: the equipment you buy has years of warranty, and how much energy (read: money) you generate with it, you even get a 25-year warranty! Solar panels also directly increase the value of your home, which means that you immediately have a large part of your investment back, without having generated 1 kilowatt hour of electricity. And to make it even better, in most cases the panels are automatically covered by your existing home insurance without the premium going up.

Convinced? Or do you want more information? You can request quotes for solar panels for free and without obligation , it costs you nothing and you are not committed to anything yet.

Cavity wall or floor insulation

You also get sustainable and a high return if you invest in insulating your home. This also increases the value of your home and improves the energy label. But the biggest advantage after that is that your energy consumption will drop sharply. You simply need to burn a lot less and you will notice that on your energy supplier's bill.

The return is even higher compared to the investment than with solar panels. With cavity wall insulation, this is just 20%. That of floor insulation is comparable to a good 10%

Here too you can view some quotations without obligation: click here for cavity wall insulation quotations or floor insulation quotations .

Invest in your own business

Where you actually invest in someone else's company by buying shares, you can of course also invest in your own company. And then you don't have to make it as difficult as you might think now, because many entrepreneurs are now looking for their happiness online.

Think of your own website, blog, vlog, social media channels on YouTube or a complete webshop. These are things that you can build in your spare time in addition to a family or job. There are plenty of people who are successful with this. Even to such an extent that they have been able to make it their job.

Read more about earning money with your own website , becoming an affiliate marketer or earning on social media .

Types of investment and investment forms

Back to investing. Risk is inevitable, but depending on the investment form you choose, the risk is different. This varies from very high to limited. Below is a short ranking from much to less risk:

  1. Binary options (don't!)
  2. CFD Trade / Turbo's
  3. Options
  5. Funds
  6. Bonds
  7. Invest in P2P credit
  8. Investing in real estate
  9. Savings account
  10. Put your money in an old sock under your bed ...

1. Binary options

Do you come across this form of investing? Get out quickly! No seriously, this way of acting is prohibited by the European Union. So don't. This way was so risky that it was better to go to the casino and blindly throw your money on the roulette table. You better have a look at the below option of CFD Trading.

2. CFD Trading

CFD is short for contracts-for-difference. This form has a so-called leverage effect or 'leverage' so that you can make returns up to 30 times than normal stocks. But also more risk of loss. The advantage is that you can try it for free. Read more about it on our page about CFD Trading . NB: with this method you can also invest in cryptocurrency, forex / currency and commodities such as gold and oil.

3 - 6. Option / Shares / Funds and Bonds

These are actually the traditional ways of investing on the stock market. For this you invest through an investment account of a broker. The best in NL has been Binck Bank for years, with low costs while providing award-winning service, training and explanation.

Invest in P2P credit

What is that? We hear you think, don't give anything. Investing in P2P loans (also called P2P loans) actually means that you lend your money to private individuals. In the article you can read exactly how it works and what benefits are there. And that is not only the return that rises from 4% to 19% on an annual basis! There are also many ways in which risk is mitigated.

8. Investing in real estate

Real estate, but then I have to be rich to start because how else am I ever going to be able to buy my first property? Nothing of the sort, you can also invest very well in real estate with little money , from 50 US dollars, but you can read that in the article. As well as the fact that your investments are always protected because you have the fixed money yourself as collateral.

9. Savings account

This is not an investment of course, but make no mistake. You do get a return in the form of interest and there is a risk that you will lose your money if the bank goes bankrupt. In the Netherlands and the EU you always have the certainty under the deposit guarantee scheme that you will receive up to $ 100,000 in return from the (Dutch) government. Consider the collapse of the Agree Bank and ICE Save in Iceland.

If saving is the best option for you, we recommend that you compare savings rates well. With that you always get a free return on your money. And save with conditions and in it

10. That old sock ...

You already have it, otherwise it is not an old sock anyway ;-) You always have the risk that it will be stolen. It can also be eaten by a mouse or lost in a fire. So just put it on the couch!

Limit risk

Regardless of what form or underlying asset you invest in, you always have your own responsibility and influence on the amount of risk you take. For example, preferably spread your invested capital over several investments. In other words: don't bet on just one stock, but on multiple prices.

Be realistic and not overconfident with the amount you invest. You can also suffer a loss, so really only invest with money that you "can miss". Finally, always read up carefully and make well-considered choices. If you want to gamble then you better go to the casino.

Practice investing for free with a demo account

Before you start investing money, we strongly recommend that you first practice with fake money. Fortunately, that option exists with CFD Trading. Read more about it on our page about CFD Trading and how to create this demo account.