It’s an almost unanimous agreement amongst women who are considered financially successful. The real path to wealth isn’t focusing solely on the income from your job, though that can help. But if you want to get the kind of wealth that exceeds the boundaries of most occupations, you might want to consider investing.
If you’re a beginner to investing know that dipping your toes in the pond doesn’t mean you have to start trading stocks or venturing into Forex markets. There are many different ways that any beginner can get started with. Let’s look at a few.
High-interest savings accounts
Okay, so this constitutes “savings” more than investments, but it’s definitely worth mentioning because most of us still use savings accounts to stash our extra cash. Whether it’s an emergency fund, savings for college, or any other long-term savings goal, you are making a mistake by keeping your money in a regular savings account.
First, you’re making it a lot easier to accidentally dip into the money you’ve put away. Second, you could be missing out on the compounding interest that high-interest savings accounts offer. And while you won’t get rich off savings interest, you’re certainly going to end up with more than you would have with a traditional account.
We mentioned that you don’t necessarily have to play with stocks and Forex and that is for the most part true. But there are plenty of ways to benefit from those markets without having to understand them fully. Automating your investments with investing technology might seem like putting a lot of trust in a machine, but the technology available through options like Betterment has been improving steadily.
They can buy and sell for you, without high risk. This is because most apps and websites include features that allow you to set an allowable amount of risk. This is the same technique ‘human’ investors use to limit their own losses.
If you prefer the idea of leaving your money in human hands, and even helping out others while you do it, then there are a lot of peer-to-peer lending platforms that help you do just that.
Lending platforms like Lending Club are becoming one of the key tools in many a modern investor’s portfolios. They’re used by borrowers as a replacement for banks. Allowing members to take out loans that have more agreeable terms that traditional lenders. It also offers better returns for members that invest in those loans. The interest made on the loans you’re involved in, through lending platforms, might not see yields as high as the stock market, but it’s a lot less volatile.
The real estate market sometimes experiences amazing highs and devastating lows, but there’s no denying that if you invest correctly, it can yield mindblowing returns. Whether you decide to purchase property to rent out and reinvest the equity into another property or if you find fixer-uppers through services like AssetColumn to improve properties and flip them; In real estate, you can have both short-term profits and long-term wealth creation.
Your own business
It’s easier than ever to start your own business thanks to the internet, even while you’re still employed. Whether you have a product in mind or a service to provide, consider ways that you can capitalize on your skills and abilities. Consider investing in yourself and starting a business or a side-hustle. It might just be your path to financial and time freedom. And while becoming a business owner isn’t always easy, nor is it a guaranteed track to success, it might be perfect for you.
Perhaps you don’t have the desire to pursue your own enterprise or you don’t yet have an idea that you’re passionate about. There’s nothing wrong with that. There’s still an option for you. Consider investing in the business idea of a colleague or acquaintance who is ready to launch their business.
Offering business loans through lending platforms is one thing, but you position yourself to potentially earn a sizable return on your investment by being a silent partner in someone else’s company. Rather than just receiving interest on the loans you invest in, you get a joint share in all business profits. Present and future.
This might not sound like a real investment, but it is. Debt is like a reverse-investment hanging around your neck. Instead of providing you with interest or dividends… it’s constantly draining you of interest and fees. The longer you carry it, the more it costs you. Paying off debt as fast as possible means you’ll have more money in the future.
A general rule of investing is to diversify it. As soon as you already have one investment up and rolling, it’s time to move onto the next. Spread your money out so that if one venture fails, it doesn’t mean your whole portfolio collapses. It’s the best way to assure long-term gains and profits.