5 Smart Investments for the Hardworking Employees

Have some extra cash in your hands and thinking of investing it? You don’t have to be an expert to get started although you need to know about the options available to you of course. Here are some great ideas for investing your hard-earned cash:

1. Retirement Fund

Our future is our responsibility, so we should invest in our future. The best way to do this is to start a retirement fund. It could be in the form of a savings deposit account, or through participating in a mutual fund for investments.

Preparing for retirement as early as possible will give you financial security in the future, for when you retire, or when we find yourself unemployed. Starting early also means you have more in your retirement funds than when we start late. Like the old saying goes, the early bird gets the worm! In this case, the person who starts a retirement fund early gets the most out of life!

2. Rainy Day Savings

A lot of people take savings accounts for granted. Setting aside a small amount from your paycheck and putting it in a bank account helps you build an emergency savings fund. You can use the money you save for those "rainy days," when you need to spend for say, home repairs, emergency medical expenses, or even that vacation you’ve always been dreaming about, whether it's in the Mediterranean or in Europe! Regularly putting money in the bank also helps build a habit of saving.

3. Insurance

Another great investment is insurance. To be frank, insurance isn't about investing your money, but investing in yourself. Getting a personal health insurance plan, or a health insurance plan that benefits you and the members of your family, can help cut down on the costs of medical procedures, doctor's visits, and other medical expenses. With health insurance, you are insured of continued financial stability even when you encounter medical emergencies.

4. A Small Business

The late Steve Jobs himself said it: Do what you love. If you have a hobby or are passionate about something, then find opportunities to turn that into a source of income. Starting a business now is easier than it has ever been. You can go start an online store or connect with clients using only the Internet. You just have to be smart and have a clear goal in mind.

5. A Car

People say that buying a car is a luxury. However, some of us have to travel two or three cities, even two provinces to just get to work in the Metro. Getting a car can help cut down costs in the long run, plus it'll help us travel to places over the weekends. Road trip to Baguio, anyone? Of course, we also have to protect our investments, so you should get car insurance along with our car purchase.

If you’re a bit hesitant or scared about the idea of investing, you’re not alone. But with greater risks come great rewards so take that first step by investing small first and go from there.

About the Author:
Kyle Kam is an online marketing specialist for Moneymax, the Philippines’ leading financial comparison website. Whenever he’s not working, he’s busy at home watching MMA videos the whole day. You may follow him on Twitter @undisputedkyle

*Photo Credit: Frank M. Rafik (Creative Commons)