The smartest thing you can do is invest your money. People are talking a lot about investing and ways to do it. And rightfully so, as who wouldn’t want their money to work for them?
But to get there, you need to go through a lot of research. A large part of that research is figuring out where to invest your money. Luckily for you, we have an article that tells you excellent ways to do that.
The Stock Market
When people talk about investing, the first thing that comes to mind is the stock market. In recent times, investing in the stock market has gotten increasingly affordable and convenient for Americans.
Nowadays, through the use of stock trading apps, everyone can be a Wolf of Wall Street. One of the most popular stock trading apps, Robinhood, saw 3 million users join from 2019 to 2020. Those are massive numbers for an app that’s been around since 2014 and only has 13 million users.
By downloading these apps, you can buy stocks. This simply means buying a portion of a company. While this is a very, very small amount, you effectively invest your money and hope that the company does good in the future.
The more your stock rises, the more you profit. But it’s not as easy as it sounds. To use stock trading as an effective means of investing your money, you have to do lots of research. You have to find companies with lots of potentials. This will depend on how much money you have to play with.
While you might find Berkshire Hathaway Inc. to be a profitable investment, do know that a single share costs up to $420,000! So if you have less money to play with, you’ll need to find cheaper stocks. More so, you need a strategy. So if you’re serious about it, then make sure to do your research.
Investing in real estate is as good as it gets. Being a property owner and renting it out for profit is one of the best forms of passive income. But to invest in real estate, you need money.
You’ll quickly learn that to invest money, you need to have them first. Luckily for you, real estate investment is one of the best forms of investment for young adults. If you have a stable job and solid income, then there is one particular thing to do.
Buying property, as one would imagine, isn’t cheap. In most cases, you will be paying off your mortgage for decades. But if you look at it from an investment point-of-view, then there is a way to turn a new property into an investment.
To do that, you will need to take out a mortgage loan. Once you’ve identified a property and bought it, immediately make it rent-ready. This will allow you extra income that you can use to pay off your mortgage. The key to this form of investing is to minimize tenant turnover. This means making sure the property isn’t vacant.
There are also other forms of real estate investment such as REITs, flipping houses, and more.
Mutual funds are a great and laid-back way to invest your money. A mutual fund is run by a funds manager that actively or passively invests the money of the pool of investors.
There are many types of funds that invest money in multiple options. Mutual funds are one of these types. Others include index funds, EFT or exchange-traded funds, and more. Mutual funds can also invest in different investment options such as stocks, bonds, or even combining multiple options.
The point of mutual funds is for investors to let someone else work with their money and get paid by simply being a contributor. More so, mutual funds are very safe as the fund manager diversifies the portfolio, eliminating risk in the process.
Some mutual funds invest solely in the top 500 US companies. There are different strategies when it comes to investing in mutual funds, so we recommend you do your research on the best ones. Many of these also require a base entry, so you might not qualify for some of them. Regardless, investing your money in mutual funds is a great way to let your money work for you.
Invest in the Future
And lastly, we will briefly touch on what it means to invest in your future. This means putting your money in a savings account. There are many types of savings accounts out there, with many offering excellent interest.
This is by far the least risky way to invest your money. But it’s also the one that pays the least. If you have a lot of money and look to invest it in a safe option, putting it in a savings account for a rainy day is an excellent option.