Top 10 ways to invest in the new year

1. Property

With property prices at their lowest for many years, 2013 could be a good year to purchase a second property and enter the rental market. There are always risks attached to property investments: prices could fall even further or you may find yourself saddled with problem tenants. This is not a short-term investment but it could be extremely lucrative.

2. Stocks and shares

There is a great deal of satisfaction to be gained from cherry-picking shares which go on to perform well. The key to success is to diversify your shareholdings or, if this option requires too much research, you could invest in a stock fund and let the fund manager do the leg-work for you.

3. Stock funds

These funds can be used to invest in a particular industry, so you can target your investment towards newer technology companies or well-established ‘blue chip’ companies. Fund managers have the benefit of specialised financial systems, such as those provided by APT.

4. Bonds

Bonds are typically a lower-risk investment as you effectively lend money to the bond issuer (normally a government or large corporation). You will receive a guaranteed interest rate for the life of the bond plus the return of your initial investment once the bond matures.

5. Bond funds and income funds

Instead of choosing to buy a particular bond, you may prefer to spread the risk over a number of different types of bond by pooling your money with other investors in a bond or income fund. Whilst generally considered lower risk, you must be aware of both interest rate and credit risk.

                  

6. Gold

Whilst gold is a commodity, it merits a special mention due to the huge demand for gold, and the resultant increase in price. This is why so many ‘cash for gold’ type companies have appeared over the last couple of years. There is some debate over whether or not the recent price slump is serious but it could be an excellent time to buy.

7. The shale gas revolution

Despite the bad press, it looks as though ‘fracking’ is set to increase throughout 2013. Incredible as it may seem, the US could become self-sufficient in terms of energy supply and the UK is looking to follow suit.

8. Other commodities

Investing in commodities has become increasingly fashionable recently due to the huge price rise for commodities such as oil and base metals. However, caution should be exercised as the bite of the global recession can be felt in this once-lucrative market. There are still some commodities, including meat and water, which are extremely attractive to those looking to invest in 2013.

9. Investing in emerging markets

The hot topic of 2012 was investment in emerging markets and this trend is set to continue in 2013. The hub of wealth appears to be moving from West to East and it’s worth considering investing part of your portfolio in emerging markets. To help you decide which emerging market to pick, consult a market risk model which will estimate risk for different asset classes within a given market.

10. Alternative investments

If you would rather put your hard-earned cash into something more tangible then an alternative investment may suit you. When consumer prices start to climb, history has shown that there is money to be made from investing in artworks, fine wines, classic cars and other luxury items that should continue to appreciate in value.

Resources

Why now is a good time to buy-to-let

Guardian article explaining why would-be first time buyers are being forced to rent

Stock prices and financial markets news

London Stock Exchange

Emerging markets information

A Wikipedia article on emerging markets

10 of Many Ways to Save Money

We all know that the cost of life isn't getting cheaper and that the state of crisis is making it hard for many to live comfortably. There are ways to save money though without making drastic changes in your everyday life.

Get rid of the unused and useless
Check around your house if you have anything that you don't need and that is using electricity, costing you money in any way or could be sold. This could simply be insurance for items that are not worth it anymore, or items that are taking the dust in the cupboard.

Reduce your electricity bill
Start by switching off all the appliance that are on stand-by, and change your old light bulbs by energy saving ones if you haven't done it yet. Turn off any lights and appliances in your house that are not necessary.

Shop intelligent

Take some time when shopping for food to choose the cheapest product by comparing the cost per kilo. Own supermarket brands are usually a good choice without compromising on quality. Only buy what you need even if an offer seems too good to miss.

Haggle when renewing insurances
Sometimes, calling the insurance at the time of renewing instead of opting for the automatic option can save you a few quids. If you have time, shop around for the best deals.

Cycle or walk
Cutting down on public transport use can save you a lot as well as providing you with healthy exercise. You can probably walk or cycle to work or to the train station instead of taking the bus.

Work out at home
You don't always need a gym to stay fit and there are plenty of exercises that you can do at home with a pair of dumbbells. Instead of spending hours on a treadmill, go for a run into your nearest park, or join a running group.

Go to the library
Why buying books, CDs and DVDs when you can borrow them for free in your local library? You can also read the newspaper there.

Stick to digital TV channels
Most of us don't need hundreds of extra TV channels than the ones on Freeview. If you want to watch sports, a pint down the pub will cost you less than a subscription.

Cook instead of eating out
Cooking your own meals will cost you less than buying ready ones or going out. It will also be healthier. Think of having your friends over for dinner and ask everyone to bring something, it'll be fun, more convivial and cheaper than a restaurant.

Take holidays at home
Sometimes, you don't need to go far to find a great place to spend holidays. There are surely many parts of the country you leave in that you don't know yet and are worth a visit.