If you have some spare money, then it is a good idea to look after it well. It can be difficult to know exactly what to do with it.
Some people feel that the money is best left in a bank account, but it is much better if you decide on making the money work for you. This means that it can earn money for you. You do need to be careful though.
The biggest amount of money to be made is with risky investments. This means that you could risk losing all of your money if you decide to invest it in something that could potentially make you a lot. Make sure that you do not get out of your depth. If you can afford to lose the money, then this is fine, but if you want to make sure that you get it back, then it is wise to do something safer.
Tying the money up for a few years can help it to perform better and so if you can afford to be without it for a while this can help. Most investments are managed funds and they have different degrees of risk associated with them. However, you can choose a tracker fund with stock market investments, which will invest across a range of stocks which will spread the risk more. These tracker accounts are normally cheaper as well because no fee goes to a fund manager.
Some people would rather invest in something physical like a house, antiques or paintings. The problem with these is that they have to be sold in order to release the equity and this could be difficult. The market does go up and down and so you will need to choose to sell them at the right time and you also have to find someone who wants to buy it.
Obviously the type of investment you choose will also depend on the amount of money that you have to invest. Some people choose to spread their money between different investments as they feel this gives them a bigger chance of not losing their money, however, the compound interest will build up better if the money is all invested in one place and so it is a decision that needs to be made carefully.