17 Options Where to Invest Money and Generate Extra Income

Do you have some savings and would like to get some benefit from them? If you want to know where to invest money, you have come to the right place!

In this article I am going to talk about the best options to invest your money and start generating extra income.

Before thinking where to invest money…

It is important that you take into account certain aspects and concepts that will guide you in your decision to invest money.

Do you know what type of investor you are?

To know what type of investor you are, you must know to what extent you are willing to risk your money.

Here elements that are difficult to quantify and other subjective ones can influence. However, knowing your financial profile will help you know the most convenient investment for you.

Taking this into account, the investment profiles are:

  • Risky . It is the investor who already knows and controls the financial world. You are willing to risk your capital with the possibility of achieving a higher return. Normally you will invest money in equities with short or very short terms.
  • Conservative . He is an investor who will prefer to keep his capital safe even if this means a lower return. He is going to make investments in fixed income and they are usually medium-long term.
  • Moderate . This investor is between the risky and the conservative, because he wants to receive more returns but without risking too much. His investments in fixed income and variable income will be similar, and in the medium term.

The investor profile will indicate the relationship between the risk you are willing to assume and the returns you expect to obtain.

Is it possible to invest without risk?

No, definitely not.

The risk of investments will never be zero.

All investments carry some risk. But what we can do is reduce it by choosing products with low or moderate risk.

Are you going to get quick money?

I am sorry to inform you that if this is your intention, this is not for you.

No, you’re not going to get him quick cash.

Some investments will generate your first income after a few months, others after a few years, depending on which option you choose.

Remember that investments may also depend on macroeconomic factors and other factors external to us.

How to choose the right option to invest my money?

This decision is personal and will depend on the study you have made of the investment options.

It is important to know the main characteristics of each product such as risk, profitability or the degree of liquidity.

You also have to think about how much money you are willing to risk, what your financial goals are, what knowledge you have and your preferences regarding investment control.

If you’re a little lost, don’t worry, it’s normal. I recommend that you visit the website of the Organization of Consumers and Users (OCU). In their section on investments, they have prepared a tool to identify the investment that best meets your needs. Get to know this tool by clicking here .

How much money should you invest?

As I said above, all investments have risk, some more than others. There is even the risk of losing everything.

Therefore, you should only invest the extra money that you have saved for this purpose, and that you can afford to lose without this affecting your life.

In other words, my advice is that you only invest the money that you have left over after covering your basic needs in the future.

Should you invest all your money in one place?

I recommend you create a diversified investment portfolio.

That is to say, that you allocate your investment money to different products, according to the economic objectives that you have set for yourself.

It is a way to reduce the risk of losses. If an investment fails, you have others that can give you returns.

17 options where to invest money

1. Investment funds

Mutual funds consist of pooling investors’ funds to invest them in different assets, which can be stocks, bonds, etc.

The management of this investment is carried out by a professional.

There are different investment funds that we can access, according to our profile as investors (conservative, moderate, risky) and the return we want to obtain.

In recent years, this type of investment can also be made with robo advisors .

Robo advisors are “robot advisors” that are in charge of managing your wealth automatically according to your investor profile. Do you want to know which investor you are and which plan is right for you? In less than two minutes you will find out with this test.

2. Invest in Stocks

Stocks are securities that some companies issue in order to finance themselves. The owners of these obtain certain rights, such as receiving dividends in the event that the issuing company decides to distribute them and obtain benefits.

Investing in shares consists of buying these securities to later sell them at a higher price, and/or receive dividends.

Stocks typically sell quickly, making this a highly liquid investment. It also has a high potential for profitability in the medium or long term.

However, it has a high risk, since this market is highly volatile and is affected by economic, political or social factors that influence the share price.

Although you do not need to have a lot of capital, you should take into account the payment of commissions to a professional for each operation (to assess whether a small investment is profitable or not, for example). In the event that you want to do it on your own, for you to make a correct investment in shares it is necessary to have knowledge in this field.

3. Invest in Bonds

Bonds are debt securities that some companies, governments and other entities issue in order to finance themselves. They give the owner the right to receive periodic interest payments, which are fixed in advance and are constant over the life of the bonds.

This investment consists of buying these securities with the aim of obtaining an income, with periodic interest payments.

Bonds offer high return potential, but less than equities. In addition, you do not need technical knowledge to invest.

Investing in bonds was considered low risk. However, given the recent financial crises, investors are now treading carefully. The main risks of an investment in bonds are: interest rate, credit, inflation and liquidity. In addition, duration provides a measure of the risk associated with changes in a particular bond’s yield: the longer the duration, the higher the risk, and vice versa.

4. Invest money in binary options

Personally I do not recommend investing money in binary options without having knowledge. Although it is becoming more popular and seems very simple, you can lose your savings, and this happens many times.

This investment mechanism consists of selecting an asset or currency and betting or predicting whether its price will rise (CALL option) or fall (PUT option). Similar to a bidding system and where speed in management is important.

In a favorable operation you can earn between 50 and 80% of benefits, a great advantage without a doubt. BUT otherwise you can lose all your investment. This is why this option is high risk and where the term is very short, sometimes the operation can last a couple of minutes.

On the Internet there are many pages to invest in binary options. If you want to invest money in binary options, I recommend you select a quality entity that is authorized. And BEWARE of scams.

5. Time deposits

This option is the most common where to invest money, among those who seek security and simplicity.

The operation is simple. The financial institution offers you an X return in exchange for keeping X amount of money for X time in said bank. You will collect interest once the term has expired.

In the case of needing the capital, you could withdraw it but after paying a penalty that does not affect the principal.

It is undoubtedly one of the safest investment options, because you know the interest you are going to receive and the term of said recovery. However, profitability is not so tempting. In addition, you do not need great knowledge about finances, because this is managed by the financial institution.

6. Invest in microcredits and P2P loans

Microcredits were born as an alternative to traditional banks in developing countries for social purposes.

What are microcredits?

They are small loans that are granted to groups with limited resources and who have difficulties in obtaining traditional credit.

Initially they were intended for women with few resources and who wanted to start a project or meet their needs. But currently, microcredits are also granted to cover urgent needs that can be covered but not at that time.

If you are interested in investing money in microcredits, it is best to go to a specialized financial institution, either online or in an office to request more information.

I recommend that you do not invest all your capital in a single project, but that you allocate it to finance several projects, in order to reduce risks and obtain better returns. Think that if a project does not work, but you have invested in five, your losses will be less.

This investment can be made in the short, medium or long term, depending on the project you choose. But I recommend that you look for investments with yields at different terms, to obtain income at different times and you can reinvest according to the evolution of the market, or simply enjoy the benefits.

7. Invest in Crowdfunding

Surely this sounds familiar to you, right?

And it is that there is more and more talk of crowdfunding, as a way of investing and a means of obtaining financing.

Crowdfunding: your money in projects of others
Invest your savings in projects

Crowdfunding is a way of collective financing, which is normally done through online platforms, that is, without financial intermediation, and is used to finance a specific project. The objective is to put project promoters in contact with potential investors or fund providers who hope to obtain a return.

There are four types of crowdfunding, according to the expected reward for financial contributions:

  • Crowdfunding . It is expected to receive a reward that can be in the form of a product or service.
  • Crowd investing . The consideration is through shares or participations of the company. Benefits are expected in the medium or long term.
  • Crowdlending . The contribution is made in exchange for interest on the borrowed money, this interest rate will vary according to the amount borrowed and the repayment term.
  • Crowdonation . Contributions are made disinterestedly and no type of reward is expected.

The operation of Crowdfunding is quite simple, although it will depend on the platform where you do it and the project, it is normally the following:

  1. The entrepreneur or project promoter sends their project idea to the platform, with a detailed description, the amount they need, the type of crowdfunding they are looking for, etc.
  2. The platform is responsible for evaluating the project and after this it is published. The publication will indicate the time that people have to invest money in it.
  3. Once the ad is published, the entrepreneurs will be in charge of promoting it to obtain the necessary financing.
  4. When the term ends, the project is closed and the financing obtained is verified.

8. Real estate or immovable property

This way of investing money consists of buying a property . It can be a house, an apartment, a commercial premises or a piece of land, to later sell it at a higher price, and/or rent it and obtain an income.

invest in real estate
Investment in real estate

Although it may seem like a simple operation, it is necessary to have good capital for this investment. In addition, have good knowledge of the market to be able to correctly choose the property to be purchased.

On the other hand, it is a safe investment with a low and profitable risk. It is difficult for real estate to lose value over time, and in the event that they lose it, they increase again.

9. Investor angel or in English “Business Angels”

Investing as an angel investor consists of finding ideas that are going to be launched on the market or recently created companies, to invest your money in them with a shareholding, and thus help them grow.

The idea is to later sell those shares for profit. Generally, it is a long-term investment.

The risk here is very high because you cannot accurately predict the success that a company or idea will or will not achieve. As a fact: most new companies go bankrupt in the first 3 years.

If you are interested in investing in new and innovative ideas, I recommend you read this article by my friend Agustín Grau: How to invest money in Startups.

I also advise you to look for public or private centers that put you in contact with entrepreneurs who are looking for financing for their projects.

10. Invest money in a business

It consists of starting a business from scratch, or buying a business that is working or financing the business of a third party.

The purpose of investing money in this way is to obtain profits from a percentage of the shares or, if in the future, you sell it at a higher price than the purchase price.

You can invest in your project
Invest your money in your own business

Are you clear that having  your own business is where you want to invest your money? Yes?. So these are some of the general recommendations that I think you should keep in mind:

  • Find out about the different possibilities to start your business. You should also inform yourself of everything that has to do with your business idea.
  • Choosing the business model you are going to follow is important. Review the information you have obtained in your research, the knowledge you have (by experience or studies), your skills and also the time you have to start it up and then to dedicate yourself to it.
  • Carry out a correct organization of the tasks to be carried out, it will help you achieve your objectives and goals.
  • Properly plan both the functional part and the budget you have, so you don’t get any unpleasant surprises.
  • Make your business known, there is no better publicity than word of mouth. Use social networks, your circle of friends and acquaintances to publicize your business and have everyone help you spread it. If your business is not known, no matter how good it is, it will not be successful.

If you already have an idea, and you want to know how to turn it into a business, I recommend you read All the steps to turn an idea into a real business on the Emprendedores.es website. Another recommended reading on the same website is 50 Tips for Entrepreneurship .

This investment option offers high returns if your business is running smoothly and is successful, but at the same time comes with high risk. On the other hand, you can be in full control of your investment, when it comes to your own business.

11. Acquire a franchise

This is an alternative where to invest money, for those who are looking to start their own business but do not have a concrete idea.

What is a franchise?

It is the right that a company (franchisor) already established in the market gives you so that you (franchisee) can open a store with its brand.

There are franchises of everything or almost everything: restaurants, travel agencies, hotels, etc. There are also franchises of business ideas, that is, they do not have their own premises but you acquire the right to use the idea.

The advantages of acquiring a franchise are clear, among them: the strength of the brand based on the credibility and loyalty of its customers. This is already a high probability of success.

However, you shouldn’t just jump in. Before, you should do some research to assess this option as the best form of investment for you.

You must keep in mind that when you acquire a franchise, you will be supervised and guided by a parent company. You cannot apply changes on your own, they must be approved by the parent company and you may not get their approval. This is going to limit your imagination, it is not serious, it is true, but you must assess if you can work in this way.

If you want to know more about all this, go read my article dedicated to the subject of franchises .

12. Invest money in Gold

Investing your money in this precious metal consists of buying gold to sell it later at a higher price and thus make a profit.

You can acquire gold in two ways:

  • Direct . Gold coins or gold bars, that is, buying physical gold. But beware, this requires care, maintenance and security. If you leave it in custody in a bank, it can cost you a lot.
  • Indirect . Certificates of gold deposits, investments in funds specialized in gold, shares of mining companies.

This investment can be quite profitable if you know when to buy it and when to sell it.

If you are looking for a short or medium term investment, it is better not to invest in gold because of its instability.

However, it is a good option for long-term investments, due to the growth trends in the demand for gold and therefore the value is also increasing.

In addition, you do not need great financial knowledge to invest in gold, it is a simple operation.

As for security, it is considered a fairly safe investment, since the value of gold is not easily devalued because it is not regulated by any government but depends on supply and demand. As I’ve said before, the demand for gold tends to be higher over time.

Another advantage is that you can sell it at any time, and you do not have to go through an intermediary to pay a commission.

13. Invest money in Silver

Investing in silver is an alternative to gold.

This metal, unlike gold that accumulates, is used for industrial consumption and runs out, which makes its value increase. Even faster than gold.

Today the purchase price of silver is low, but the value is expected to increase considerably. It is a good investment opportunity.

The ways of investing in silver are similar to those of investing in gold. You can buy silver bars or coins, silver certificates of deposit, or invest in shares of companies related to silver mining.

14. Invest money in works of art and collectibles

Basically, it consists of buying paintings or sculptures by well-known or emerging artists.

But they can also be other types of objects such as: stamps, coins, jewelry, etc. That is, objects that are expected to increase in value over time, and thus be able to sell them at a higher price than the purchase price.

Although it may seem like a simple investment, keep in mind that it is not easy to find a buyer. You can take time to sell them. But in the meantime, you could rent them to some gallery or museum and get a rent for them.

This investment can be quite profitable in the long run. And if you like art, you will surely enjoy having a work of art or a collectible in your possession.

The biggest drawback is that they require a lot of care and maintenance. Works of art must be well preserved so that they do not lose value and are not destroyed. In addition, insurance usually has a high cost.

If you are thinking about this investment, BEWARE of scams, so that you do not buy a fake.

15. Invest money in theater or cinema

I did not know this idea, but researching for this post I came across it and it seemed interesting to include it in the list.

This form of investment can generate significant profits. But for this you have to invest in the right movie or play, and unfortunately no expert can tell you this. The risk in this investment is high. 

You may have hit the highest grossing movie and in that case you will have a high and even constant income. If, on the other hand, the film or play has been a failure, you can lose your entire investment. No one knows how the public will react.

Normally, this investment is made in the short term.

16. Invest money in high-end wine

Some experts say that investing in high-end wine is more profitable than in art. Although I warn you that you are not going to become a millionaire with a bottle of wine either.

Invest in high-end wine bottles
Some experts say that investing in high-end wine is more profitable than in art

But why invest money in wine?

There are several reasons why you should consider this option to invest money.

  • The value of wine increases just by ageing, even if you keep it underground.
  • The value can increase, even as its flavor erodes over time and it is no longer drinkable. Although it may surprise you, it is true, and it is what differentiates it from other assets. Over time these bottles become “rare” because perhaps there are few or no other bottles like that. For what wine lovers or collectors are willing to pay large amounts of money.
  • Being a consumable product and as demand increases, stocks (bottles) decrease. There is a limited supply and this affects the price, so it increases.
  • The price of wines increases in the same line as wealth increases, that is, if there are more people who can afford high-end wines, their price will rise.
  • On the other hand, this sector is not affected by economic downturns, interest rates, political issues or fluctuations in the stock market.
  • You don’t need to be financially savvy to invest in wine as it is a tangible product and can be easily purchased.

For all this and other reasons, this investment is quite stable in the medium and long term.

If you decide to invest your money in wine, remember that it also has its risks. You must preserve them properly, the bottles can break, you may never sell it, etc.

In addition, you have to choose very well where you are going to buy, since not all wines accumulate value. Make sure you choose the right wines and pay the right price for them.

17. Invest money in… IT

Yes, as you have read, an investment option can be yourself.

What do you mean Jimena?

What I mean is that, you can dedicate those savings to your training.

Perhaps a specialized course on a subject, or a course that allows you to update your knowledge or some training that allows you to develop your skills.

Use your money for your training
When you invest in your training you will receive new knowledge in return.

I consider training as a good choice whether you are working or looking for a new job.

In addition, it is a low-risk investment, because it will help you develop your professional career and/or start a business. In no case is it a loss.

As for the reward, when you invest in your training you will receive new knowledge in return, you will develop your skills. You can see that reflected perhaps in salary increases or in the development of a project.

Although it is the last option on this list, it does not mean that it is the least important. Evaluate it like all other options.

Other ways to earn money passively

Most of the ideas I have shared in this article can lead to passive income.

That would be cool, right?

There are also other ways to start earning money passively, I’m talking about Infoproducts.

You know that they are? Agustín Grau in his course “ Create infoproducts and generate passive income ” tells us all about infoproducts and how they can become our source of income. I recommend it to you🙂

Can you make money without investing money?

Yeah right if!

If you search the internet for methods that you do not have to invest, you will find several. Of course, your profits will not be the same as the investments that I told you about before.

Some of these methods are very popular because they are simple, but do not expect to become a millionaire . Here are some ideas:

  • Paid Surveys . Pages known as  i-Say (only in Spain); Toluna  and the LifePoints website (in Spain and Latin America) pay their users between €0.50 and €2.50 for answering some questions about products or services. In this article you will find more information about this method and other recommended pages.
  • Apps to earn money. One of my favorites is  Gift Hunter Club  (it has several ways to earn extra money), but there are many more, discover them here .
  • Advertisements . We are used to seeing advertising, but getting paid for it? I tell you more in this article .
  • Mini-jobs . You can supplement your income from the above methods by doing small tasks. For example: verify company information, recognize objects in images, etc. You can find these tasks on Clixsense or  Clickworker . If you want to know more about this idea here you can read more .

In conclusion

In this list I have compiled some of the investment options that exist in the market, but there are others. For this reason, it is important to dedicate time to this task and carry out a good study of each one before deciding where to invest money. So you can make a correct choice according to your economic objectives.

I hope this information has been useful to you.🙂

And you, where do you invest money? What advantages and disadvantages would you highlight? I read you in the comments.

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