Smart Investments for Any Income Level

Savings are essential to frugal living. Of course, you may choose to store your savings in a regular savings account, but have you considered putting your savings in different areas?

Investing your savings spreads your money around different places. Due to the nature of investing, and because you may invest in several different areas, you can make a lot more money from investing than you would in a savings account. However, in the same way investing can bring more money in, investments can also depreciate and give you back less money than you invested.

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That’s why, when looking at putting your savings into investments, you should be very careful to pick what to invest in. No matter your income level, these are some of the safer areas to invest in.


Government bonds

Government bonds are, essentially, you loaning money to the government. You get interest back on the loan over a previously set amount of time. This can often go up to thirty years if that suits you. Government bonds are a good investment because you have the security of knowing you will have a steady, regular stream of interest return for an amount of time you already know.

Plus, there is almost no risk to investing in government bonds. You know that the government sanctions them, and so it won’t be dangerous to invest in.

However, the return on government bonds isn’t as high as some of the riskier investments. So, consider what you want from your investments – high risk, high reward, or, like with governments, security, regularity, but lower reward?


Dividend stocks

Dividends are cash payments made by companies to their shareholders regularly. This form of investment has the benefits of government bonds while reaping the higher rewards of other kinds of investments.

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Due to the regularity of payments, dividend stocks carry less risk. Similarly, by investing in profitable, stable companies, there is a lower risk of any issues arising from the company.

However, due to the market forces at work for profitable companies, dividends will likely give you a higher return than government bonds.



Cryptocurrencies like Bitcoin have been big in the public consciousness recently. This may seem like an investment for the younger generations – the whole idea of an online currency may be a lot to wrap your head around – but cryptocurrencies are a good investment for everyone.

If you buy Bitcoin, your investment will be stable. This is because cryptocurrencies usually have a capped amount of supply and so can’t be affected by governmental intervention via inflation.  Basically, this means that any big, inflation-led currency disaster (such as a bank failure) won’t affect the value of your investment.


Investments or savings?

Choosing what to do with your savings is up to you. If you decide to go down the investment route, ensure you do as much research as possible before investing. A bad investment can cause lots of unnecessary difficulties for you.


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