Brian Spero tackles investing-related topics on Money Crashers Personal Finance, a site dedicated to helping readers save money and build long-term wealth for the future. Here’s some handy advice.

They say a fool and his money are soon parted, but occasionally, it’s the foolish investor who’s laughing all the way to the bank.

With big risks can come lavish rewards. Big risks, however, more frequently result in extreme cases of heartache, embarrassment and financial insolvency. Still, there will always be the odd daredevil willing to risk ruin to chase windfall profits from risky investment. This is for you.

For those brave souls who like to fly by the seat of their pants when it comes to finance — and for the rest of us who have trouble turning our eyes away from a car crash — here are several risky ways to invest money:

1. Inventions
There’s a popular ABC reality TV show called “Shark Tank” which features a panel of savvy millionaire investors listening to pitches from different inventors and either passing or buying into the given proposal.

For the purpose of entertainment, the exercise has great value, only underscoring the uncertainty of these propositions and the difficulties involved in making even the best of them pan out. Not only is there the pressure of identifying what will be marketable, there are countless moving bogeys, from unforeseen patent issues to the structure of the financial particulars, which could easily result in disaster.

With inventions, you have a chance of hitting one out of the park. However, most of the time you are just swinging with your eyes closed.

2. Art
Aside from the lucky lady who paid $2 for a Picasso at a garage sale, few make a real killing on works by artists living or dead. If you’re relatively smart, well-funded with capital, and extremely patient, you should see a small but steady return over the years on investments on paintings and sculptures. You can also just as easily lose your shirt by overpaying for an up-and-coming artist, unable to find even a small return when the market for his or her work fails to materialize. As the phrase goes, beauty is in the eye of the beholder, leaving your prospects of getting rich by trading art very subjective.

PREVIOUSLY: Top 10 Misconceptions About Money and Debt

3. Extreme Stock Trading
Within the volatile landscape of the stock exchange there are certain precarious paths certain adventurous traders dare not go down. One such play is putting money into a once-prominent company struggling to keep its head above water.

The idea is to sink dough into a stock that’s fallen to the depths, typically trading for less than a $1 per share, and then cashing in on the rebound. The trouble is, once a company’s death knell has been tolled, it likely signifies that the body’s already dead and cold. Dr. Frankenstein used lightning to reverse the natural order, and you’ll likely require help from above too if you want to avoid taking a bath on this risky strategy.

4. Commodities
There’s nothing like throwing turbulent global markets, the threat of natural disaster, and unpredictable rates of supply and demand into the already challenging chore of choosing an investment. Commodities trading†has long attracted the lusty eyes of the aggressive investor with a high risk tolerance. When an earthquake off the coast of Africa can cost you your holdings, or the company you are vested in is expelled from its foreign host over a petty squabble, you know you are playing a game that’s not for the faint of heart.

5. Collectibles
Making money is fun, but you can’t always have fun while making money. Investing in collectibles seems like a blast, whether it’s a perfectly preserved classic car or a stack of trading cards from baseball’s Golden Era.

The common problems with this strategy include identifying items that will appreciate over time, calculating current market value, and, most importantly, finding a motivated buyer. There are some quirky, loveable souls out there who manage to eke out a living, but you probably have better odds cleaning out Vegas at the blackjack tables than striking it rich†on collectibles.

Final Thoughts
Everyone loves a daredevil for the willingness to risk it all in conquering a feat that few others would even attempt. While it’s possible to find wealth pumping money into oil wells and gas or stocking up on works by what you hope to be the next Van Gogh, it’s probably a safe play choosing more conventional ways to invest your money. But hey, those haven’t worked out so wonderfully lately either, so the time may be ripe to get a little daring with your portfolio.

What other high-risk investments do you avoid?

Money Crashers is geared towards providing young individuals with financial education in a wide variety of topics, including starting a small business, extreme couponing, and career advice.

The post Daredevil Finance: 5 Risky Ways to Invest Your Money appeared first on HyperVocal.

David Bakke discusses personal finance issues and tips on Money Crashers, an online resource that seeks to help you improve your “financial fitness.”

For years, I have kept myself involved in the realm of personal finance, writing articles, acting as an advisor to friends and family, and even penning a finance book. During this time, the one thing that stands out to me the most regarding people with financial difficulties is their lack of education in such matters. Far too often, I find people who have fallen prey to the many misconceptions regarding personal debt.

Many years ago, I myself was a victim of these falsehoods. I was able to climb up out of the red, and you can too. The best way to attack your debt issues is to objectively view your personal financial situation, and to disregard the many myths regarding personal debt and money.

Money Myths to Avoid

1. Credit Card Debt Is a Way of Life
If you regularly pay interest or late fees, it is time to cease this practice. I once had amassed over $30k in credit card debt, and once I solved it, the amount of new discretionary income introduced into my daily life was significant and everlasting. It motivated me not only to eliminate credit card debt from my life, but also to vow never again to venture into that costly world.

2. My Credit Score Is Just Fine
Your credit score can affect everything from your ability to land employment, to auto credit terms and insurance rates. Your score is golden and should be treated as such. You can get a free copy of your report once per year from the three major reporting agencies. Set up a schedule, monitor it on a timely basis, and fix any errors that you find.

3. Retirement Savings Can Wait
The time to start saving for retirement is now, regardless of your situation. Depending on your finances, you may want to start off slowly. Consider a minor contribution to an employer-based 401k plan. From there, look into an IRA, whether it be a traditional or a Roth IRA.

4. Just Go After the Big Debts
While refinancing your home mortgage can reap huge savings, you also need to look at smaller spending issues in your daily life. Consider bringing a brown bag lunch to work, eliminating home telephone service, and cutting other smaller expenditures. These small savings can add up over time.

5. Closing Credit Card Accounts Helps My Score
A large percentage of your credit score is based on your available credit versus credit used. Therefore, you’ll want to have a good amount of available credit at your disposal – closing a credit card account can hurt your credit score. If you’ve got cards that you no longer use, put a few small purchases on them every few months, and pay them off right away. This will prevent the issuer from closing these accounts for inactivity reasons.

6. Paying Cash Will Help Your Score
If you can afford to pay off your balances in full and on time every month, you want to use plastic every chance you get. This will build up your rewards balance if you’re using one of the best cash back credit cards and increase your score. Consider signing up your month utility bill payments through a credit card to further increase your rewards.

7. My Troubles Aren’t My Fault
Your credit issues are yours and yours alone to deal with. No one is going to manage your finances for you. Therefore, you need to take charge, get yourself organized, and pay down and eventually eliminate all the debt issues in your life.

8. Paying Monthly Bills on Time Isn’t Important
This piece accounts for more than 30% of your overall credit score. Sacrifice where you can, set up a separate bill-paying calendar at home, and always pay your bills on time every month.

9. My Monthly Income Is a Fixed Amount
To eliminate debt, either decrease spending or increase income. There are many ways to generate income in your spare time, and at the top of that list is to start your own side business. Identify one of your talents and figure out a way to turn it into a money-making opportunity.

10. I Should Get Out of the Stock Market Until It Recovers
Any investment strategy should be built for the long-term, and it’s likely that you may not want to get out when the markets are down. Some experts even advocate investing more during a struggling economy, as you can receive a variety of investment products at a cheaper price when values are down.

Final Thoughts

To get out of debt, it ultimately all comes down to applying common sense to your finances. The cost-saving ideas that I put into place when I was getting out of debt have stayed with me even after my last balance was paid off. The money I used to send in to credit cards each month is now used for retirement investing, paying for my kid’s college, and enjoying a less stressful life overall.

Once you get out of debt, continue to apply the same skills that helped you climb into the black so that you can stay there! What other money myths can you think of? Lave a comment.

Money Crashers is geared towards providing young individuals with financial education in a wide variety of topics, including starting a small business, extreme couponing, and career advice.

The post Top 10 Misconceptions About Debt, Money and Personal Finances appeared first on HyperVocal.