Investing is always an interesting subject, because just like everybody is interested in making money, the next step is always finding a way to keep that income, and hopefully grow it somehow. With the current economy, the first phase is harder than ever, and simply making enough to live comfortably on can be a big challenge. So when you do manage to get some extra cash, you want the best possible option for investing. In this article, I want to talk about some different options on where to invest in 2012, some tips you can use, and some words of caution.

The investment choices in 2012 haven’t really changed much from the past years. The options you have are still quite similar; it’s just that the risks and rewards have shifted a bit.

Let’s start with the safest options, and move on to more risky ones. Even though the US dollar is said to be sinking by a lot of pundits, it’s still a very good investment. This means vehicles like treasury bonds, or the dollar itself are still deemed as the safer bets. Opening a standard investment savings account at a local bank is pretty much the safest thing you can do, and even if the bank defaults, you’re protected by the federal government. The downside of choosing the safer option is that of course, your potential income will be very low. Interest rates aren’t that great, and you won’t be doubling your money any time soon.

If you want to go with more risky investments, then you can start by looking at mutual funds and the stock market. Over the past few years the stock market has suffered because of the economic downturn. Now however, we’re starting to slowly get out of it, and many experts think it’s a good time to get back in. Of course, that’s no guarantee. To make money trading stocks, you’ll need a lot of knowledge and skills, and unless you’re prepared to risk big, you should probably look into some form of managed funds, something that a good broker or financial adviser can offer you, with limited risks and decent returns. Then there’s also real estate. The past few years have been hard on the property market, thanks to all the debt and foreclosures around the nation. Still, when prices go down, it’s time to buy. I’ve recently watched an episode of Ellen, where a fourteen year old girl bought a house for twelve thousand dollars! She’s now making good returns monthly by renting out her house. If you plan to put real estate into your portfolio, it’s probably a good time for you to get in on the action now.

If you’re feeling more adventurous, then there are other possibilities as well. A lot has been said about commodities lately, especially energy commodities like lithium, and precious metals like silver and gold have seen a huge gain in the past 2 years. Typically when the dollar goes down, commodities like gold, silver and many others start to climb. So you might want to look into these alternative opportunities.