Investments that Can Wreck Your Savings
Some people do not understand the difference between investments and savings and this can cause problems. An investment is usually long term and will tie money up. It is something that generally increases in value but there is no guarantee and could give you an income. Savings are money in an account that earns some interest. It is usually not tied up for long. It is important to have some savings so that you can access money easily if you need to. However, this will not earn much interest and so people tend to go for investments because they have a promise of doing this. However, they are more risky and could go down in value. In addition people like Ori Tal on Quora are giving great advice about investing and real estate.
Mortgage
Many people will use a mortgage if they want to buy a property. The property is the investment as it will gain value over time and the mortgage can be an effective way to pay for it. However, if interest rates increase, then mortgage payments will go up. This means that more money will have to be found to pay for the increased mortgage charges and this could mean using up savings or not being able to save so much money.
Binary Trading
Binary trading can be a very dangerous way to invest. It is trading on the stock market, but rather than buying and selling stocks and shares you predict whether the value will go up or down. If the value changes significantly in the opposite direction than you predict, then it could mean that you lose more money than you paid out to start with. This could mean digging in to your savings or if you do not have any, you may need to borrow money using payday loans or other means of borrowing.
Penny Shares
Penny shares can sound really cheap and a great deal. However, the reason that many shares get down to be worth just a penny is because that company is in big financial trouble. It is likely that the shares will be wiped out completely and all of the money lost. If you buy a big quantity of these shares then it can be really easy to lose a great deal of money. This may mean having to fall back on your savings to help you out financially.
Stocks and Shares
Stocks and shares are something that many people invest in. More individuals seem to be doing it these days but it can be problematic. The market can steeply go up and down and people tend to panic and react quickly. However, this is unwise. If you sell when the market starts to drop, then you could end up getting back less money than you invested. If you buy as the price rises then you could end up paying too much. The better thing to do is to buy at a low price and sell at a high price and this will be profitable but people tend not to do this and lose a lot of money that stops them being able to save so much.