Investing our money is often relegated to stocks and bonds. While these are viable forms of investing (hence their popularity), they aren’t the only options out there. Some people are intimidated by investing because they want to have very little interaction with the process. Others want to be active but just don’t know where to start. Fortunately, there are plenty of options available to match your investing desires.
For those that want to put their money somewhere and let it grow without any effort, passive income investments are the way to go. It can come in the form of traditional stocks and bonds or you can get creative. You can invest in Certificates of Deposit (CODs), foreign currency, or even cryptocurrency. While some research should occur before the investment begins, this is one of the most hands-off forms of investing you can find.
Focus on Real Estate
Real estate can be one of the most active investing options available. You have to find that right piece of property, fix it up, sell it at a higher price or rent it out. If you choose to rent it, you have to maintain upkeep on the property, which can be made easier if you adopt a property guardian scheme, where your property can be maintained in times without tenants. Active investments are perfect for that person who wants to make sure their investment can gain value quickly and efficiently. They are willing to roll up their sleeves and do a little bit of hard work to support their investment. However, if that fills you with anxiety, you can make your rental property a passive option by hiring a management company to maintain the property. The trade-off is that it will cut into your profits or dig you deeper into a hole, should the property not do well right away.
Start Small in the Beginning
Of all the tips offered to beginners, our favorite is to start small at first and grow as your success grows. Consider saving for an emergency fund, thus investing in financial stability for you and your family. Or you can talk to your bank about various low-cost investment programs for retirement that they offer. Even joining the Holiday Club at your bank is an excellent way to invest your money! Why start small and low? For starters, it gets you excited. Even small successes can give you the right amount of self-esteem to make you want to invest more and try other options. Secondly, your losses are smaller and have less impact on your life. Losses happen to all investors at some point and if you can learn to deal with losing a little bit, it will make it better for you later when you might lose a larger number.
Invest in Your Passions
Have you heard about a new business getting started that excites you? Did you see that corner lot on one of the busiest intersections in town go on the market? Did you find a new cryptocurrency that made your heart go pitter-patter? Investing in what you are interested in already makes for a good investment choice. It means you want to see something do well, you support it, and you reap some benefits for supporting it. For example if you are passionate about the environment or doing good in the developing world platforms like Swell Investing help you invest by solving global challenges.
Investing is the one thing we should all do. It can give us the financial security we desire, allow us to travel frequently, give holiday gifts that make our hearts sing, and we can save for the retirement we dream of. What sort of investment will you opt for next?