Investing can be an absolutely fantastic opportunity to make some more money for yourself, but you have got to be willing to take a risk here. Investing is all about risks, and if you’re not willing to put yourself in a position to lose money, then you’re not going to make any. There are investments that are safer than others, it’s true, but they are never ever a sure thing, and that’s what we want you to understand before we say anything more about it. In this article, we are going to be taking a look at some of the investments that you should think about making this year, so keep reading down below if you would like to find out more.
Cryptocurrencies
The first thing that we are going to suggest is cryptocurrencies. We’re sure that you have heard a lot about cryptocurrencies over the last couple of years as they have been a particularly hot topic. It all kicked off when Bitcoin made the news a couple of years ago and the industry doesn’t seem to have slowed down at all since. Then more recently, there was a big deal made over the cryptocurrency Dogecoin from a large group of people on Reddit. If you didn’t see the news surrounding this, you might want to go back and take a look as it will show you how easy it can be for things to change up on the market.
There are many different types of cryptocurrency with Bitcoin and Ethereum being two of the largest. But, investing in some of the smaller ones could also bring you some fantastic returns. Cryptocurrency is not the easiest thing to invest in though, so we recommend you have someone who knows the market on your side for this, just to be on the safest side possible.
S&P 500 Index Funds
If you are looking for higher returns than traditional banking bonds, then the S&P 500 index fund could be something that would interest you. Though, you need to be aware that this also comes with more volatility than the traditional banking bonds. This fund is based on around 500 of the largest American companies which means it consists of some of the most successful companies throughout the entire world. This includes the likes of Amazon for example.
The S&P 500 index fund allows for immediate diversification. This means that you can own a piece of all of the companies involved at the same time through this type of investment. It is one of the most resilient types of investment as the fund has companies from a range of different industries. This type of investment is going to be ideal for someone who can stay invested for at least 3-5 years, with the index returning around 10% annually.
If you are new to investing, then this is one of the best choices that you could make. It ensures that your exposure to the stock market is diverse, giving you fantastic levels of knowledge.
High-Yield Saving Accounts
A high-yield online savings account pays you interest on your cash balance in tha account. It’s like a savings account that earns money at your physical bank. They are accessible for cash but have fewer overhead costs. This means that you should be able to earn higher interest rates with the online banks rather than your usual ones. If you are going to need cash in the near future, then this could be exactly what you need.
If you are particularly risk-averse, then this is a good idea for you to start. We mentioned above that investing is risky, and if you aren’t willing to take a risk then it’s not really for you. That’s still true, but this is a safe investment as much as it can be.
Real Estate
There are two ways that you can go about investing in real estate that will give you the return that you are probably looking for. Both of these options involve quite a large amount of work on your part, so make sure that you are not scared to get involved other than with your cash. The first option that we are going to present to you is that you can buy a run-down house for a smaller sum of money, fix it up, and then sell it on for a profit. This is what a lot of people choose to do. However, the problem with this is that you never know how much money you are going to have to put into the project, and whether the house will sell for enough to cover it all and provide you with a nice return. It all depends on the housing market as well, so it’s something to keep your eye on.
The other thing that you can do is look into rental housing. If you are willing to manage your own properties, then this is a fantastic choice. You can purchase a house, and with mortgages being quite low at the moment, this should be easier than ever. However, it is essential to be aware that some lenders may be reluctant to offer a mortgage on a property that will not be your primary residence. So, researching how to get a loan for a rental property and finding the perfect financing option for your needs is a crucial task. From there, you can rent it out and charge enough to pay off the mortgage each month and still have some extra for yourself. This is a long-term investment though and will help you in later years. If you manage everything well and pay off all of your mortgages, then you will have a lovely flow of cash when you retire.
Loaning Money
Have you ever thought about loaning money? You might think that loaning money isn’t an investment, but it is. There are multiple ways to do this, and multiple ways for you to get the cash to do this if you don’t have it right now. If you are an older person and you have a self-directed IRA, then you can use this to lend money. If you look at something like Accuplan Benefits Services, you will be able to find out more information about how you can do this. You might be wondering why though, and the answer is simple: you may be able to make more money without actually doing anything!
When you loan money as a private lender, you get to set the terms. You get to set the interest rate, the payment dates and so on, giving you full control over everything that happens.
Dividend Stock Funds
Finally, you might want to invest in stocks that pay dividends. These are portions of a company’s profit that can be paid out to shareholders. With a dividend stock, you can earn cash in the short-term, while also gaining on your investment through market appreciation. These are a fantastic choice for any kind of stock investor, but if you are looking for income from your stocks, then these are the absolute best for you. If you can stay invested for a longer period of time as well, this is going to be even more beneficial to you.
We hope that you have found this article helpful, and now see some of the things that you should consider investing in this year. It’s important that you have some kind of plan before you start blindly investing in things that you know nothing about. We highly recommend that if you are going to start doing this, you either use a partner that knows what they are doing, or at least take the time to educate yourself on the market before you jump right in. If you do this, you will enhance your chance of seeing an excellent level of returns. We wish you the very best of luck, and hope that you see the results that you are looking for.
