Whether they’ve saved a little over the years or they’ve received a lump sum from an inheritance or a job, many people decide to invest their cash in order to hopefully see some returns build up over time. However, with major forms of investment like the stock market associated with problems of volatility, some investors are starting to look for alternative ways to make their capital grow. 

Peer to peer lending 

Peer to peer lending is a relatively new form of alternative investment, and it’s one that’s getting a lot of attention in the financial press. Peer to peer lending sites match up people who have spare money to invest with businesses looking for an injection of cash, a process which cuts out the traditional middleman roles like stockbrokers. 

The advantage of this to the investor is that they get to help small start-up businesses and can track their progress. Often, investors on peer to peer lending sites are advised to ensure that their portfolios are diversified – which means they should be split across as many different borrowers as possible. That way, your overall returns will be preserved even if one or two businesses fail.  

Financial astrology 

If you’ve got a tendency to think spiritually and even supernaturally, financial astrology may well be right for you. Those who follow financial astrology make their investment decisions based on astrological changes, such as the movement of the stars. While it may not be scientifically verified, many people swear by it as an investment strategy. Choosing your lottery numbers based on your astrological sign is quite common, and horoscope lucky numbers may well turn out to be your key to a better future. 

Real estate 

When it comes to investing, there’s nothing quite like purchasing a property of some kind and renting it out. The major appeal of doing this is that you get two benefits in one: not only do you receive consistent rental income, you also benefit from the rise in the value of the property over time. If you buy a place in a popular area, it’s possible that the increase in the market value could be large. 

And while it’s feasible that the worth of your real estate could plummet just like any other investment, it’s less likely to happen. That’s because people always need somewhere to live, so demand can’t be wiped out entirely as it can be on the stock market. It’s also often – although not always – the case that the property market moves more slowly than parts of the stock market, so you’ll be better informed in advance if you decide you need to change your real estate portfolio. 

Invest in yourself 

Do you have a skill or a talent that’s always in demand? Perhaps you’re a whizz in the kitchen, and your friends and family are forever asking you to make cakes for birthdays or to cater for parties. Or maybe you’re great with needlework, and you fix everybody’s clothes when they get a hole in them. No matter what your skill, if you’re good at it then you could start your own business. 

That, of course, requires cash – which makes investing in yourself an attractive option. If you have a lump sum, it may pay dividends to use it to get you off the ground by buying the equipment you need or paying the first month’s rent on your new business premises. Again, it’s not risk free – but if it suits your life and talents, then it’s a good idea. 

Forex trading 

If you’re good with markets and numbers, Forex trading might be right for you. Trading Forex – short for “foreign exchange” – requires you to essentially gamble on the changes in price of two different international currencies, such as the British Pound or the US Dollar. The power of leverage means that, if your bets go well, your returns can multiply – but if things go wrong, then so can your losses. Because it requires active participation, Forex trading is best for those who have a high-risk tolerance, and who know what they are doing when it comes to currency movements.  

Whatever alternative investment method you choose, it’s important to make sure it’s right for you. Sound financial decisions come from a strong understanding of your personal financial position, and that means taking the time – and the professional advice – to find out the right approach. So, whether you go for modern methods like peer to peer lending or decide to stick to “old school” investments such as property, there’ll be a correct alternative financial move out there for you.