Interest rates across the savings market aren’t exactly making anyone a millionaire overnight. Many young people are trying to build up enough funds in the bank to pay the deposit on a mortgage, pay their student loans, and create a future that is both stable and rewarding.Economic realities, however, are bleak. A cost of living crisis, a housing crisis, and inflation soaring. That’s not even to mention the war in Europe causing a global energy crisis. An avenue not often considered by the young is investing their money to increase their savings pot for the future. It comes with risk, not something a generation that has lived through a series of global financial crises and the total crash of 2008 is enthusiastic about embracing. Here are some tips on how to invest and get the return on your investment you deserve.

Stocks And Shares 

As a beginner, no one should jump into the deep end of investing their hard-earned money in stocks and shares. Investing in stocks involves researching a public company and buying shares of ownership in that company. You’re hoping the company grows, adding value to your bought shares. If your shares become more valuable, people might want to buy them from you for more than you paid, making a profit. It can be a long game and takes patience. It’s a good idea to diversify your portfolio and stay invested even when there are fluctuations in the market. Long-term investment in stocks and shares outperforms cash investment ad is a good idea if you’re looking to build your savings over a longer period. How to Invest In Stocks for Beginners 2022 [FREE COURSE]

Individual Stocks

You also can purchase an individual company’s stock and become a partial owner of that company. When the company makes money, you’ll also feel the benefit. Should the company grow in value, the value of your stock will also increase.If you decide the value is right, you can choose to sell the stock for a profit. However, there’s always the risk that the price will decrease, so you’ll lose money.The company might reward its shareholders via dividends, distributing earnings to their investors. It’s possible to achieve higher-than-average returns by investing in specific individual companies after much research. You can minimize your risk by investing in only outstanding companies at prices that guarantee a significant return.


Bonds are loans taken out by companies that obtain money from investors who buy their bonds. In exchange for this capital, the company pays an interest coupon (annual interest rate paid on a bond from the issue date until maturity).

  • Short-term bond: Matures in one to three years.
  • Medium- or intermediate-term bonds: mature in four to ten years.
  • Long-term bonds: Maturities greater than ten years.

Only some bonds reach maturity and Callable bonds, which allow the issuer to retire a bond before it matures, are common.“Bonds and bond funds can be an important component of a diversified investment portfolio. They can be helpful for anyone concerned about capital preservation and income generation and can help partially offset the risks that come with equity investing. But like all investments, they also carry an element of risk.” – Finra.


Bank Products

Banks, savings associations, and credit unions offer such products as savings and checking accounts, money market deposit accounts, and certificates of deposit (CDs).The Federal Deposit Insurance Corporation (FDIC) protects deposits at banks and savings associations. For credit unions, it’s the National Credit Union Administration that protects assets.Bank products are often lower risk but usually provide lower interest rates than other investment options. Savings held in bank and money market accounts are readily available, offering a way to save money and easily access deposited funds.CDs are helpful additions to most investment portfolios because they offer safety and a predictable return.

Futures And Commodities

Commodities are the basic goods that make up everyday life. They can include metals such as copper, gold, and silver; energy sources such as crude oil and natural gas; agricultural commodities such as wheat and coffee; and livestock and meat products such as pork and cattle. Investing in commodities as an asset class, like equities or fixed income, is a way to add diversification to an investment portfolio.

  • A commodity futures contract is an agreement to buy or sell a particular commodity at a future date.
  • The price and the amount of the commodity are fixed at the time of the agreement.
  • Most contracts contemplate that the agreement will be fulfilled by actual delivery of the commodity.
  • Some contracts allow cash settlement in lieu of delivery.
  • Most contracts are liquidated before the delivery date.
  • A commodity futures option gives the purchaser the right to buy or sell a particular futures contract at a future date for a particular price.
  • With limited exceptions, commodity futures and options must be traded through an exchange by persons and firms who are registered with the CFTC.




Cryptocurrencies are one of the newer types of investment. They are unregulated digital currencies bought and sold on cryptocurrency websites. Cryptocurrencies, such as Bitcoin or Dogecoin, have gained much interest recently as investment vehicles due to their quick and dramatic growth. However, they remain a precarious investment because of their many unknown factors.There is the possibility of government regulation and the chance that cryptocurrency will never see widespread acceptance as a form of payment. Cryptocurrency currently has no intrinsic value and could disappear as quickly as it came into existence.In the same way that US Dollars are exchangeable for another currency, they can also be exchanged for cryptocurrency, or crypto. Not part of the Forex market, crypto has similar investment mechanics and is quite simple to explore online. Investors hope that the value of a cryptocurrency will increase against the dollar. The crypto market can be very unpredictable however, they have been known to reach great heights and plummet to incredible lows.

Mortgage-Backed Securities

Once you purchase mortgage-backed security, you are lending money to a bank or government institution. The loan receives backing from a collection of home and other real estate mortgages.Other bonds pay principle at the end of the term, whereas these mortgage-backed securities pay interest and principal to investors monthly. While they can provide steady income and reliable returns, mortgage-backed securities are also more complex than other options, and you should avoid these if you are only beginning your investment journey.

Close-up Of A House Models With Percentage Symbol In Front Of Businessperson Working In Office

Mutual Funds

“The average individual will need more than $3 million to be financially independent in retirement in twenty years and, frankly, mutual funds won’t get you there.” – Rule One Investing. A mutual fund is an investment fund overseen by a money manager who invests a client’s money and attempts to secure good returns. Mutual funds are usually a combination of stocks and bonds. However, they carry less risk because your money diversifies across many stocks and bonds. You’ll only reap the rewards from stock dividends and bond interest or if you sell when the fund’s value goes up with the market.

Regarding value, mutual funds are built and managed by so-called “financial experts” who have a hard time beating the market, especially when you factor in the fees they’re charging to manage the investment in the first place.Investors expect a minimum annual compounded rate of return of 15% a year or more. If you can get that, you won’t care what the market is up to because you’re going to retire rich, whatever happens.It’s better to manage your own money, unless you have plenty to give away already.


Most investments come with a certain amount of risk, so it’s best to do your research and discuss your options with family and your bank. However, if you are willing to play the long game, have patience and watch your investments grow then it’s likely you’ll be rewarded for your efforts. An ISA is always a good investment, and it’s likely that you aren’t looking at a single solution to maximising your savings but a combination. For absolute beginners, the following are likely your best options:

  • First, I’d open up a Roth IRA and invest for retirement so my money can grow tax-free.
  • Then, if I just wanted to invest my money with little research and forget about it, I’d put a chunk of it into an Index Fund such as the S&P 500 or the Russell 2000.
  • Lastly, but certainly not the least of these, I’d invest in the stock market.

-Rule One Investing

This list is by no means exhaustive, but it’s a good place to start!