There are many different types of investments for your money. In this list below I’ve briefed over the 8 I find the most common and easier to understand.

The information on this website is for general information purposes only. It is not intended as legal, financial or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature you should seek advice from a qualified and registered legal practitioner or financial or investment adviser.


Peer To Peer Lending

I mentioned this type of investment in our post 13 Ways To Make Extra Money. P2P lending lets someone needing a personal or business loan borrow money from an investor. Instead of going through a lender such as a bank, building society or credit union. The borrower takes out a loan and repays it over a set amount of time, with interest. You, the lender, gain returns through the interest paid. 

Personally, I use Plenti as one of my different types of investments platform to invest this way. Do your own research for what platform is suitable for you when deciding to invest in peer to peer lending.


In the simplest of meanings, A stock is part ownership of a company. They can be also known as equities or shares. Basically, when you buy a stock you are a part owner of that company.

A stock (also known as equity) is a security that represents the ownership of a fraction of a corporation. They are bought and sold mainly on stock exchanges.

Stock prices rise and fall depending on the company’s current climate, environment and financials. There are countless reasons a stock price can move. Obviously though, the aim of investing in stocks is to sell your share higher than you bought them for. In layman’s terms, make profit on your investments.

Price is what you pay. Value is what you get.

Warren buffet

ETF’s (Exchange-Traded Funds)

An exchange traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other asset, but which can be purchased or sold on a stock exchange the same as a regular stock.

An ETF can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities. ETFs can even be structured to track specific investment strategies. ETFs can contain many types of investments, including stocks, commodities, bonds, or a mixture of investment types.

In the world of financial independence retire early (FIRE Community), ETF’s are very popular both for their long term growth potential and dividend returns.

different types of investments

Mutual Funds  

Much similar to ETFs, mutual funds and ETFs are both created from the concept of pooled fund investing, often adhering to a passive, indexed strategy that tries to track or replicate representative benchmark indices. Pooled funds bundle securities together to offer investors the benefit of a diversified portfolio.

Real Estate or REITs

A real estate investment trust (REIT) is a company that owns, operates, or finances income-generating real estate.

REITs pool the capital of numerous investors. This makes it possible for individual investors to earn dividends from real estate investments—without having to buy, manage, or finance any properties themselves.

REITs are an alternative for people who can’t afford to invest in the property by buying entire properties. REITs work much like ETFs.


A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).

A bond could be thought of as an I.O.U. between the lender and borrower that includes the details of the loan and its payments. Bonds are governments and other companies to finance projects and operations. Owners of bonds are debtholders, or creditors, of the issuer.


An NFT is a digital asset that represents real-world objects like art, music, in-game items and videos. They are bought and sold online, frequently with cryptocurrency, and they are generally encoded with the same underlying software as many cryptos.

To  be honest, I don’t invest in NFT’s because 1. I don’t know much about them and 2. They seem like a very volatile investment. As always you should do thorough research before considering investing in these.


Cryptocurrency is digital or virtual currency. Many cryptocurrencies are decentralized networks based on blockchain technology.

A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.

Popular cryptocurrencies include Bitcoin, Ethereum and Litecoin. Crypto’s in recent years have become extremely popular for both they’re huge price hikes as well as they’re massive price falls. 

Investing in cryptocurrency is considered one of the more high risk different types of investments.