Are you looking to invest your money in something that will reap a significant return? If so, you’ll want these 10 ideas on the best place to put your money.
About 80% of Americans are living with some form of debt. Although there is such a thing as good debt, there’s no better feeling than being in a position of financial security.
Having financial security means you’re able to breathe a little easier. You don’t have to worry about making rent each month and you can do things to enjoy life more like go out to a nice dinner or plan a vacation.
Or, you can figure out how to make more money than you already have by investing. Investing is a lot easier than it sounds, and there are plenty of ways to go about it.
The trick is to identify where the best place to put your money is.
Here are 10 things you need to consider investing in if you’ve got some extra cash laying around.
1. An Extra Savings Account
You probably already have a savings account set up if you’ve reached a point where you’re ready to start investing. But, one of the easiest ways to invest is actually to set up a second savings account for money that you may need unexpectedly.
This can be the account you dip into when an emergency comes up like if you need to pay for repairs on your car or pay for hefty medical bills. It’s also a good resource to have if you know your family is having financial struggles and may be coming to you for help at some point.
Whatever you end up spending this money on, you’ll be glad you took the time to put it aside.
2. A 401K
Speaking of putting money aside, have you started thinking about retirement yet?
It can seem like a far-off thing to worry about if you’re only in your early 20’s or 30’s. But, the truth is that it’s never too early to contact a professional like Oak financial planner Perth to start planning your retirement.
The sooner you start saving for it, the sooner you’ll be able to retire – and it’s a lot easier to save for it than you might think. Check with your employer if you’re eligible to start a 401k, and see what kind of options are available to you when opening one.
Keep in mind that you can still access this money if you end up switching jobs, but you’ll have to remember to do so when it’s time.
3. Stocks
Stocks are arguably the first thing that came to mind when the word “investment” is brought up. Stocks are pretty straightforward once you get the hang of them, and they can offer a substantial amount of returns if you’re successful at stock buying and trading.
You don’t have to be a big-time business person or have a lot of money to start using stocks. You just have to educate yourself about how the market works and begin investing little by little.
4. Penny Stocks
If the risk of losing money on stocks scares you, start investing in penny stocks and work up to the big leagues. Penny stocks are smaller pieces of stock that come at much cheaper prices. This also means they offer lower returns, but, they do teach you the basics about how stocks work.
You could also look into the new form of buying and trading investments that’s hot right now – cryptocurrency. Blockchain and crypto funds are comparable to stocks, but they are a world of their own. If you want to invest in this, the best thing to do is use a crypto trading bot.
5. Real Estate
Sometimes, the best investment you can make isn’t in some sort of account or portfolio but in a tangible asset. As far as assets go, one of the most profitable things you can buy and then sell is real estate.
Be careful of diving in too deep, though.
You want to get a feel for your local real estate market before you start buying properties left and right. Consider whether you’ll need to invest in a property before you can re-sell it, or if you’re willing to hold onto a good property as-is and wait for market demands to go up and spike up the price.
6. Collectible Items and Other Valuables
Real estate is just one of the many assets you can invest in to make more money for yourself. Other assets range from everything to vintage furniture and artwork to precious jewels. There’s also the opportunity to invest in collectible items in niche markets – like antique baseball cards, guns, or clocks.
These may sound like weird things to invest in, but it all goes back to the thought that one man’s trash really is another’s treasure. If you do decide to get into such a style of investing, try to specialize yourself. Don’t buy a bunch of old jewelry and furniture and artwork; pick one thing and focus on that.
7. Business Opportunities
Another way you can do more with your money is to invest in a business.
Do you have a friend who’s about to launch their startup? Would you like to one day sit on a board of directors or become a business partner in an industry that interests you?
You have to put your money where your passions are to do this.
Take the time to listen to your friend’s idea and to explore the other startups out there. You may stumble across an amazing business opportunity, but you’ll never know until you start looking for it
8. Peer-to-Peer Lending
The thing about investing in a business is that there are many ways to go about it. You have to be clear about what kind of risk you’re taking and what’s in it for you. You have to think long-term and be ready to invest a big amount in the short-term.
Or, you can look into peer-to-peer lending.
Peer-to-peer lending is essentially the more formal, less risky way of giving people a loan. This loan may be for business purposes or it can be for things like paying rent or settling another debt. Your money can go to people you know or complete strangers.
But with peer-to-peer lending, you can trust that you’ll get it back and with a good return. This isn’t always guaranteed when your siblings ask for money or when a friend is in a jam.
9. Charity
Here’s a thought: why not use your money to do some good?
You don’t always have to think about investments in terms of what’s in it for you. It’s worth to use your money to give back from time to time and help others achieve their goals.
This is especially true when you’re funding charitable initiatives like cancer research, homelessness and poverty relief, or education and mental health support. Whatever cause it is that speaks to you, find a way to use your money to encourage the good work that volunteers and organizations are doing.
10. Yourself
At the end of the day, the absolute best thing you can ever invest in is your happiness.
Maybe it’s time to use your spare cash to buy healthier groceries and pay for a personal trainer. Maybe you can use this to purchase a few new books or to finally sign up for that online course you’ve been eyeing.
There are so many ways you can invest in yourself – both for free and as an expense. Find the ones that you need most and figure out how to make every penny you spend on yourself worth your while.
The Best Place to Put Your Money When Traveling
When most people think of investing in themselves, they dream about taking a lot of time off and going on a special vacation.
They imagine themselves on a first-class flight to some far-off destination like Eastern Europe or Southeast Asia. They think about what it would be like to wake up in a 5-star hotel and dine at the best restaurants in the world.
Maybe you’re not exactly at that level of financial freedom yet, but, you are thinking about putting your money into a valuable experience.
If you’re having trouble deciding where the best place to put your money is in terms of a vacation destination, check out these awesome places to travel to!
