How To Take A Bit More Risk With Money
|Money : Saving|
Many people are paranoid about losing money, and with good reason. But if you are a bit more speculative, and want a better return than lousy interest rates in Britain give you, then you could look to the stockmarket. In 2002, this has been at a very low point, which means it is a good time to invest, if you want to make money in the future.
The golden rule is to never invest more than you can afford to lose - as a rule of thumb, this may be around 10% of your total savings. Certainly only do it if you feel you can afford to.
Start small, and spread your risk - don't put ?5000 on one company and nothing else. Instead try to spread it over 4 - 5 companies, ideally in different sectors. And do your research too.
Just remember, the stock market can go down as well as up. Or since 2000, the stock market can go down as well as plummet. But what goes down, must come up...
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