These days there are so many different options when it comes to investing. You need to be armed with the proper knowledge and put your head down and learn all that you can about the investing strategy you choose. If you don’t learn and become more aware of the investing risks and rewards you could start chasing those who promise quick riches through the next killer penny stock or some secret trading strategy that will only be made available to a few people. Basically, these people pray on the human fear of loss. Some are even downright scammers but it takes a while for these crooks to get caught. Resist the temptation to earn money quickly and easily. If anyone promises you either of those scenarios, don’t walk, run in the opposite direction.

Your best bet to getting rich is using a long-time perspective when it comes to your savings and investments. If you are always looking towards the short term or the next 3-6 months when it comes to calculating returns on investment or rates of return on other investments you are likely to make poorer decisions. When you consider each investment for a longer period of time i.e. for 3-5 years or longer, you are likely to do your due diligence and you will not lose sleep over the market’s ups and downs. Wondering where to invest your money? Lets look at our top picks for where to get the best returns for your money:

1) Stocks: Nearly everyone talks about stocks as having the highest rate of return when it comes to investments especially if you consider the long-term as we suggest. Stocks can be a great investment especially for those who are OK with crunching a few basic numbers and doing some due diligence about the company whose shares of stock you are willing to buy. There are a lot of different approaches you can take to individual stock selection. We advocate reading up ‘Rule #1’ by Phil town when you are starting out and then reading ‘The Intelligent Investor’ by Benjamin Graham.

2) Index Funds or ETFs: Those of you who like minimal management of their portfolio but don’t want to lose out on higher potential returns stocks can offer should consider investing in index funds or ETFs (Exchange Traded Funds). With the advent of ETFs you can invest in a diversified aggregate of stocks which represent the different indexes or sectors that you are familiar with. Its less riskier than investing in individual stocks but can offer superior returns if you play it right.

3) Yourself: That’s the best investment anybody can make. Invest in knowledge that increases your earning ability and sharpens your investing skills. Read books, take courses & seminars and above all else apply what you earn. Be prepared to make mistakes and more importantly learn from them.