Bad Investments That Could Cost You Dearly

If you know anything about money and finances, you will be very aware that investing your cash is one of the best things that you can do with it. It’s even better than simply hoarding it all away in a savings account as you stand a much better chance of getting some considerable returns on your investments. It’s fair to say that even the best savings accounts with the higher levels of interest just can’t compare to the growth your money will see in various investments.


However, investments are not all created equal. Sure, there are some really great ones, but there are also some that are extremely risky for you and your money. Here are some of the worst investment decisions that you could make. Try and stay away from them as they will certainly cost you dearly!






On the face of it, timeshares may seem like a really good idea. After all, who doesn’t want their own little place in the sun where they can go on regular vacations? But they really aren’t good for your money. When you invest in a timeshare, you will buy a portion of the year to spend at the property. The more people who invest in the same property will make it cheaper for you. So, it’s easy to think you are getting very cheap holidays. That’s not the case, though. Most timeshare properties have very expensive maintenance costs that you will have to pay for. You won’t just have to pay for the maintenance carried out while you are there – you will need to pay for the year in full. Plus, timeshares can be very difficult agreements to get out of. Most people have a battle on their hands and resort to using the services of Aconsumercredit and other companies who help their clients rescind timeshare agreements. As you can see, they are bad for your cash and also your stress levels!




Pyramid Schemes


If someone approaches you with a business idea, you might be tempted to invest in it, especially if they itch well and put on a great presentation. It might all seem very compelling and legitimate. But you really do need to think twice about their proposal as they might just be trying to sell you a pyramid scheme. You need to pay to join the scheme at first and will then need to recruit other new members so that you can make a profit for yourself. However, this can be very difficult. Even if you do find that you are able to recruit some newbies to start off with, you will no doubt find that the pool of possible people you could invite starts to dry up. Pyramid schemes always inevitably collapse and, in this situation, the only people guaranteed to walk away with any money are those at the top who started it all. You will definitely lose out. So, don’t invest in these kinds of schemes as they are usually always scams!






Even though land looks like it could be a great investment, it usually is far from it. Lots of people buy land thinking that they can then sell it for a higher price to property development companies. Even though that sounds simple enough, it isn’t always that easy. In fact, the value of land can actually be very volatile. You might buy the land for one price but then will be unable to sell it for a higher price at a later date due to a dip in its value. Not only that, though, but you will have to pay certain taxes and insurances to protect the land while it is in your ownership. This is a regular monthly outgoing that could be costing you dearly. You will need to factor in this cost when you work out how much you make from reselling the land – as a result, you might be surprised at how little you are able to make.




Penny Stocks


Have you ever heard of penny stocks? If not, then that is probably a good thing! These types of stocks were very popular a decade or two ago and many people still seem to favor them over other investments. But that’s a really bad move. These penny stocks bring terrible returns on money. These stocks are all priced under $1. As they are so cheap, many investors believe that they will be able to make a quick profit very easily. That rarely happens, though. In fact, the only people likely to make any money from these kinds of stocks are those who list them for sale on their website. So, stay well away!




Missuited Higher Education


Most people will agree that there are some higher education degrees and courses that are really worth it. For instance, those who study medicine and go onto become doctors will be investing in their future by going to higher education. After all medical professionals are always in demand so there will always be well-paid jobs for those who take a course in medicine. Other higher educational courses that are worth it include mechanics, sciences, modern foreign languages, and teaching. However, there are some courses and degrees that don’t improve people’s employability. These are more often than not the degrees that are considered arts and creative. For instance, philosophy, English, and history of art won’t have too many career prospects available to you once you graduate. This is because you won’t come out with any practical experience or a defined career. So, you need to think about which higher education course you are going to take before you finalize your choice. Otherwise, you could really struggle to find a well-paid job after graduation. And, if that happens, all of that money you pumped into your university or college tuition fees will have been a very bad investment.


Hopefully, this blog post will help you open your eyes when it comes to bad investments. If you manage to stay away from these, you should end up in a strong financial position!


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