As we start achieving financial security and reach a point where stress and debt no longer dominate our lives, we may ask, how can I grow my existing money more efficiently. Investing is a broad term that features a vast array of potential earning opportunities, from those that offer long-term growth to those that are more volatile and come with the potential to rapidly build upon your initial investment. However, those who are just looking into investing may not know how or where to get started. If you are just dipping your toes into the water, here are five things you should definitely invest in to get started on your investment journey.
1. Invest in your own business or side-hustle.
As the saying goes, “you have to spend money to make money”. What better way to spend and make money than by investing in yourself? If you have business knowledge, a passion for a specific product or service, and the time and energy to turn your idea into a reality, choosing to start your own business or side-hustle may be a very lucrative avenue to pursue. For example, if you are someone who is an excellent painter and believe that you can begin selling some of your work locally or online, you can invest in some high-quality art supplies from a company like PaintLoose. Then, figure out where others are selling their art (or create your own website), start coming up with pieces that people will love, and post them for sale! No matter what your idea may be, deciding to invest in a business can be a great way to grow your wealth over time.
If you do choose to start your own business, it is vital that you continue to invest in yourself and your education as you grow over time. One way to do this is to follow business experts like Mark Wiseman, who will provide you with more insight into current business trends as well as cover leadership that you can apply to your own business. The more you seek to learn from experts like Mark, the more effectively you will be able to earn from your efforts.
2. Purchase real estate that you can rent out to others.
Investing in rental properties can supply you with an additional stream of income (but will require an investment of both time and money). If you are knowledgable about real estate and what requirements are expected of you as a landlord, you may be interested in purchasing houses or apartment complexes, improving their interior and curb appeal, and advertising them as available for rent so that you can start making monthly income through them. While the upfront investment is typically substantial, these properties will pay for themselves over time.
3. Take advantage of extreme volatility by putting money into crypto.
Chances are that you have heard of a cryptocurrency known as Bitcoin sometime over the past few years. Put simply, cryptocurrencies are digital currencies that were designed to improve upon the traditional financial market by targeting things like ownership and the costs associated with transferring money. For investors, these currencies have become especially attractive because they are volatile, meaning that their price swings wildly from high to low. While you will need to educate yourself on these assets before investing, this may be a way for you to earn a large sum of money in a short amount of time.
4. Look for reliable dividend stock funds.
Dividend stocks are stocks that pay out earnings to shareholders, often on a quarterly basis. The good thing about dividend stocks is that you are seeing your investment appreciate over time, especially if you choose to reinvest your earnings into the same stocks as you make them. Just make sure that you look for reliable stocks rather than seeking out the highest-paying as these options aren’t necessarily indicative of performance or sustainability.
5. Use your money to pay off your debt or grow your wealth over time.
Last but not least, it is important to remember that you should be investing your money safely before pursuing other methods. This means making sure that you pay off all debts you may owe so that you can grow your wealth without the thought of debt looming over your head. Once the debt is gone, you should then begin by investing responsibly by putting your money in an interest-bearing savings account and in retirement accounts. This will give you the freedom to spend your other income sources as you please.
There is an abundance of potential investments out there if you know where to look. To help you get started, use the five investment ideas provided above to begin building your wealth today.