Home > Making Money > Earning Through Investments

Earning Through Investments

By: J.A.J Aaronson - Updated: 31 May 2012 | comments*Discuss
 
Investment Investing Property Stocks

It is very common for people to get bored of their job. It is easy to begin to resent the fact that you have to work for someone else, particularly when you are constantly under pressure to meet deadlines and perform constantly better. In an increasing number of cases, this disillusionment with the world of employment is being translated into positive action in order to try to find an alternative. One such alternative is becoming a professional investor.

There are, of course, a considerable number of very wealthy investors; one need only look at the huge amounts of money made every day on the stock exchange for evidence of this. Of course, in order to reach this position you would need a considerable amount of capital to begin with - or a very good eye for an investment.

A Variety of Options

There are several very popular methods of investment. The most well-known of these is stocks and shares. When you buy shares in a company, you are essentially purchasing a small portion of that organisation. This grants you the right to have your say in the way the company is run, through their annual shareholders' meetings. Furthermore, depending on the company's performance, you may be paid a regular dividend. It is highly unlikely that you would be able to make a living solely from dividends. Rather, professional share dealers make their money on 'capital accumulation'; that is, they buy shares at a lower price than that for which they sell them. It sounds simple, but shares are, in fact, a very high-risk investment as a result of the fluctuations of the market. Most professional investors have a 'balanced' portfolio, meaning that they even out the risk posed by their shares by investing in other, lower-risk prospects such as trusts and bonds.

Property

Another possibility for those who are looking to make investing a full-time occupation is property. Although the recent downturn has rather taken the shine off property investment, most analysts agree that it still presents a good option for long-term investment.Buying a house with the intention of selling it on assumes that you are capable of adding value to the property while it is your possession; you might redecorate, or carry out any structural repairs that are keeping the value down. This is a very labour-intensive prospect, and is also high-risk. There is no guarantee that the market will remain as buoyant as it has done in recent times, and so you risk not making any profit at all - or, even worse, making a loss. Similarly, there is no guarantee that the property will sell once you have completed the work.

Buy to Let

Another option is Buy to Let. This is covered in more detail elsewhere on this site, but essentially involves buying property with the intention of renting it. This often involves less work than buying to sell on, but still poses many of the same risks; although not as prone to fluctuation, the rental market is still subject to many of the same concerns as the property sales market. Before embarking on any such project, therefore, you should seek expert advice in order to help you assess the comparative risks and benefits.

You might also like...
Share Your Story, Join the Discussion or Seek Advice..
Why not be the first to leave a comment for discussion, ask for advice or share your story...

If you'd like to ask a question one of our experts (workload permitting) or a helpful reader hopefully can help you... We also love comments and interesting stories

Title:
(never shown)
Firstname:
(never shown)
Surname:
(never shown)
Email:
(never shown)
Nickname:
(shown)
Comment:
Validate:
Enter word:
Latest Comments
  • Swissone
    Re: How Much Tax do I Have to Pay?
    Moved back to the U.K. Last November. My only income is a Swiss pension paid monthly, about £3000 at present exchange rate.…
    21 September 2017
  • Working mummy
    Re: How Much Tax do I Have to Pay?
    Hey, I've just been paid for my first month at work. I earned just over £1,700 and was taxed £146 and £123 NI. This seemed…
    20 September 2017
  • MoneyExpertise
    Re: A Guide to Unemployment Benefits
    Erbie - Your Question:Hi I'm starting my own business and I am still employed full time if I was to leave my current…
    19 September 2017
  • MoneyExpertise
    Re: How Much Tax do I Have to Pay?
    Mel - Your Question:I got a self assessment for April 2015 to April 2016 and I appear to not have paid any tax on the 2…
    19 September 2017
  • MaxL
    Re: How Much Tax do I Have to Pay?
    @harey2805 - it's swings and roundabouts. If she wants more take-home pay then self-employed means she will be able to fill in…
    18 September 2017
  • Mel
    Re: How Much Tax do I Have to Pay?
    I got a self assessment for April 2015 to April 2016 and I appear to not have paid any tax on the 2 employments I had over this…
    18 September 2017
  • Erbie
    Re: A Guide to Unemployment Benefits
    Hi I'm starting my own business and I am still employed full time if I was to leave my current employment to pursue my…
    16 September 2017
  • harey2805
    Re: How Much Tax do I Have to Pay?
    My wife (40) is working 2 days a week for £150 a day. She is also likely to be required for about 20 additional days throughout…
    16 September 2017
  • MoneyExpertise
    Re: A Guide to Unemployment Benefits
    Pat - Your Question:My hours are shortly to be cut to 16 (2 days) per week. I am 63, married and a home owner with no…
    15 September 2017
  • MoneyExpertise
    Re: How Much Tax do I Have to Pay?
    Leeh123 - Your Question:Hi I work seasonal so I do a lot of hours and through June, July and august I've been getting paid…
    15 September 2017
Further Reading...
Our Most Popular...
Add to my Yahoo!
Add to Google
Stumble this
Add to Twitter
Add To Facebook
RSS feed
You should seek independent professional advice before acting upon any information on the MoneyExpertise website. Please read our Disclaimer.