Whether it’s tightening your budget or seeing how you can make a bit of extra cash, it’s fair to say that so many of us are keeping an even closer look on our finances right now.
With energy bills having rocketed up in April and the price of petrol continuing to spiral, the strain has been put on a lot of families.
One way of making some extra money that you’ve no doubt seen plastered all over Instagram is trading currencies and investing in stocks and shares.
You might have seen flashy lifestyles shown off and thought you could never make money the same way? Well… don’t be so sure.
You don’t have to become a millionaire through trading and investing, but it might help you make an extra bit of cash in these uncertain times.
And here are four ways to get involved that aren’t as difficult or as costly as you might have imagined – however, always remember that investing and trading is no guarantee, and your own money will be at risk. Never invest more than you can afford or use money that is earmarked for something else.
CFDs
CFD stands for contracts for difference is a deal made between an investor and a financial institution linked to the future value of an instrument trade.
You don’t need to own any stocks or shares, or purchase foreign currency to trade CFDs, so the initial costs are lower than traditional trading. These investments are also settled in cash so if you hit the right notes, you can make money quicker.
It’s crucial that you use this method with a reputable CFD trading provider to grow your investments as much as possible.
Spread betting
Spread betting is similar to trading in CFDs in that you don’t actually own any shares, while you can still make money. However, there are also some key differences. For example, spread bets are traded commission-free and with leverage.
Spread betting – as the name suggests is essentially a form of trading. You will place a bet on whether you think a stock, commodity or currency will rise or fall in value.
This method can take a bit of time to research as you look for cues that a shift in value is imminent, but if you’re someone who is regularly plugged into current affairs, you might be surprised to see what patterns you can start to see developing.
Managed portfolios
If you have a pot of savings that you’d like to turbocharge through investing, did you know that you don’t have to do it yourself?
Several institutions offer managed portfolio services to clients, which sees your cash put in the hands of financial experts who can invest it with carefully selected stocks and shares in an attempt to maximise returns.
This method is typically suited to those with higher amounts to invest but are often linked to higher chances of success as your portfolio is constantly monitored by experts, meaning you don’t have to stay on top of things and can get on with living your life!
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