When it comes to making money from money, most of us are familiar with the basics, invest and save. But do you know what to invest in? There are a few hidden gems in investing that you may not have considered, but are well worth your attention.
buy and hold real estate
Flipping properties is very popular but the real road to wealth is buying and holding. Investing in a rental property is a great way to get a sizable return on your investment. If you buy right – under market value or in a rapidly appreciating market – you set yourself up for success.
For example, let’s say you purchase a property for $75,000 and hold an mortgage on the property that costs you approximately $600/month. You find a tenant that rents the property and you make a few extra hundred dollars per month in rental income… but after 5 years the property is worth $145,000 and you decide to sell. You’ll make money on property, about $70,000 and walk away with cash to reinvest or pocket. Ask yourself, what other investment will virtually pay for itself (if you manage your monthly rental cash flow properly) and give me a potential return of more than $65,000 in a few years? I’ll wait…
a girl’s best friend
Most of what we hear about investing is rooted in purchasing stock. But there are other ways to invest and make amazing returns… that are a little less talked about. From trading foreign currency (think Forex) to penny stocks and precious metals, there are nontraditional ways to invest your way to success. The best way to buy gold or other precious metals is to do your research.
Learning the market is the first step to success. Precious metals trade just like any other investment but understanding the ebbs and flows will help you make lucrative decisions. Movement in the value of precious metals is actually closely correlated to the fluctuations of the value of the dollar. Precious metals often gain when the dollar is weak, and fall when the dollar is strong.
fun fact: Another benefit of precious metals is that this is one investment that’s tangible. You can buy gold coins or bullion bars.
stocks and bonds
Finally, you may also want to consider investing in bonds. Some bonds have the potential to offer a great ROI. But many women are hesitant to invest in bonds. Why? It’s likely because there’s endless information out there on investing in stocks but not so much when it comes to bonds.
tip: Take a look at some of the best bonds to buy right now, and see how they match up. If you still feel like this could be the route for you, adding bonds to your portfolio could work.
There are benefits to bonds.
Although they don’t offer potential windfalls of profit they do provide a fixed return that repays you the original amount you invested plus interest (typically yielding between 0.4 and 7 percent). To make it simple, when you purchase a bond, you’re making a loan to the issuer.
To put it simply, when you buy a bond — whether it’s a taxable version from either the federal government or a corporation or a tax-free municipal bond — you’re making a loan to the issuer. The government entity or company you invested with agrees to pay you a set rate, often referred to as the coupon rate. You then receive that interest quarterly. When the bond matures, you get back the principal amount you originally invested. If you want to get started with a ‘safer’ investment… start here.