Frugal Living

4 Things You Need to Know Before You Start Investing

Investments aren’t just for the wealthy and famous. In fact lots of them probably got wealthy by investing in the first place. It can be done, but there are things you need to know to ensure you get off to a good start. You need to know about the different types of investment available to you which depends on the money you have. As you will likely be starting off with a low amount, the highlighted investment opportunities can be reached with fairly low amounts of capital. This means as spring approaches you can turn your money earned from frugal means into something worthwhile, here’s how.

Get A Lump Sum

Before you invest in anything you need a lump sum to invest with. Everyone is different and there are all types of ways you can accrue a lump sum. One way is through a windfall or inheritance, another is through frugal saving and living, or you could have had a nice tax refund come through. There are many tax refund questions you may need answering as it is a complicated business but you can get decent lump sums out of it so always investigate to see if you have anything owed back to you. So, now you have your lump sum, here are some things to do with it.


One of the most tangible investments you can make is in property. Primarily because it is a physical investment and the prices of houses have been steadily increasing with consistency for decades.You can either do a property up and sell it on for a quick return or let it out for a passive income. You may be better off going into a partnership with someone, especially a tradesman to cut down on the outgoings.

Certificate Of Deposit/Bonds

These are a really good entry level investment you can make. Essentially you can find a bank who sell them and you give them a lump of cash which you can’t touch for a predetermined length of time. In exchange they will give you a brilliant interest rate, meaning at the end you will come out with a good chunk more money than you put in. Your best bet is to shop around for the best certificate of deposit out there, look for the term and the interest rate. Just because you bank with someone does not mean you need to take out a CD with them. Bonds are similar and are often issued by banks and governments. You can buy them and then sell them for a greater rate depending on inflation, so keep an eye on which way it is going.


Art is a brilliant investment. Not only can you make money on it but in the meantime you can use it to make your home look nice. In this sense, it is better to pick things out you like the look of, not things you think will be worth money. Only do this if you have genuine appreciation and experience with art. You can buy some here.

If you are looking for additional advice on this topic, make sure to visit the advantage properties website!

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