With the new economic trends, there are many investors looking for different ways to make their money work for them. Infomercials and books advertising ways to invest in real estate and debt buying are enticing everyone, including us mommy(ies) of course, from young investors to those who are looking for a way to diversify their portfolio. These investments may work for some people but most of the time they become part of the list of investments your children will learn  from.

Ponzi Schemes. This type of investment usually comes with an outrageous guarantee that if you put in a certain amount of money you will certainly get back an amount much higher. The problem with these investments is the only person making money is the one selling you the investment. In reality the investment itself does not truly exist and you will lose thousands of dollars if not more. Most people did not know what a ponzi scheme was until the media began reporting on people being arrested for facilitating them.  

Unsecured Loans. This investment can be risky no matter how you choose to do it. If you choose to take out a payday loan in order to fund your investments, you may find yourself unable to pay back the loan amount. Those who do not need to borrow money to make an investment may choose to invest in lending for payday loans. In this journey, you risk losing your money due to the borrower not repaying the loan.

Precious Metals. Investing in metals such as gold and silver may seem like a great idea at the time you are considering it. The problem with this investment is the risk of dropping prices which can happen at any time with little or no notice. Another important issue with investing in precious metals is that they are not a good source of continuous income like other investments are. In order to successfully invest in a metal such as gold, it is very important to follow the values very closely. This will allow you to sell the gold before the value decreases and you are forced to take a loss.  

Real Estate. This investment may not seem risky to most people, but the real estate market fluctuates frequently. If you choose to purchase a building or home out of foreclosure in order to flip it and resell it, you will want to work fast and try to keep your budget low. The longer it takes to sell the home the more you will be spending on loans and interest. On the other hand if you purchase rental property, there is always a risk that your tenants will not pay the rent or will damage the home while they are living there.