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If you are safe with your money, then you will have the peace of mind that it will be well looked after and you will be able to get to it quickly and easily. You may even get a small amount of interest on it as well. If you take risks, then you may lose the money but you could get a really big return on it and therefore make a lot of extra money from it. Choosing whether to be safe or risky with money can be a difficult decision. Partly it will depend on our personality and whether we are a risk taker or not but it will also depend on whether we can afford to lose the money.

A risk taker will be happy to put their money in an insecure place if it means that there is a chance that they will get a good return on it. They will be prepared to lose it for the chance to get a big bonus for taking that risk. Someone who does not like risk would rather put their money in a savings account where it may get a lower return than the rate of inflation (and therefore lose value) than risk losing any of it. Most people may fall somewhere in between where they may be prepared to take a calculated risk.

If you have money that you need, then it is best not to take risks with it. For example, do not buy lottery tickets with your rent money. However, once you have paid you bills, then you may have some money left over. You will need to consider whether you would rather save it or invest it and what level of risk you want to take. It could be wise to keep some in safe savings accounts so that you have money to fall back on should you need it. This means that if there is an emergency you will be able to cope and you will always have the peace of mind knowing that you will be able to manage. The rest of the money is something that you should consider what you want to do with. You may want to save up for a deposit on a house, pay off your debts or mortgage, save towards your retirement or just hold onto it until you need it. The use that you want for it could determine what type of investment you choose and how much risk you should take.

It can be wise to chat to a financial advisor about this. They will be able to help you to decide where the best place is to put your money depending on how much you have, whether you want to pay in a lump sum or monthly payments and how much risk you are prepared to take. It is good to be aware of all of the options available to you so that you are able to make a decision based on what is available. Take your time as well because you do not want to invest in a risky thing unless you have carefully considered all of the alternatives.