It’s never too late to start your investment. In fact, within a couple of years, you can earn thousands of dollars by the time you graduate or retired. Start your investment when you’re at the 20s. If you’ve any debt, it’s a good idea to clear your debt and start investing your money wisely. Since there are multiple ways to invest your money, pick the best one that fits for your requirement.
Following are the popular ways to invest your money wisely
The Stock Market
The stock market is the best place for investors to put their money. If you’re planning to keep your money into the stock market, you’re doing a great job.
The stock market works in a simple way, Whenever you buy a stock, you’ll own a certain portion of that company. When that company gets profits, they will pay a certain amount of money from those profits depending on how many shares you have.
Before putting the money on a company, research the company history and profits. Invest in a growing company and expect better profits.
Mutual Funds
Apart from buying one stock in the stock market, you can buy bulk stocks through mutual funds in a single purchase. The mutual fund will take care of everything, they will choose and manage your stocks effectively.
Keep a note, the mutual fund manager will charge you for maintaining your stock. You need to pay a fee to the manager when you invest your money in their mutual funds.
Savings Accounts
A savings account is the best way to invest your money without risk. Invest your billion dollars in a savings account and collect interest quarterly, half-yearly and annually. However, you might get fewer profits when you invest your money in a savings account. Since the risk is low, the returns will also be less. There are few savings account, that has no return, choose the saving account that has a high return.
A savings account is a great investment when you run out of cash or use it during an emergency rather than touching other investments.
College Savings Accounts
Everyone is familiar with retirement saving account. Like a retirement savings account, many students are focusing on college saving account. These accounts often provide excellent tax perks. During your college days, opening a college savings account is the best way to invest your money.
CDs
CD is called a “certificate of deposit”. If you’re looking for a high interest, opening a CD account is the best way for you. Basically, CD typically provides a high-interest rate on your money and a low-risk investment. Whereas saving account offers a low-interest rate on your money. Unlike a savings account, you cannot withdraw your amount whenever you want it. There is some time when you need your deposited money, at that moment you need to pay a fee as you break the CD terms and conditions.
While fixing your amount in CD, check their interest rate and target date. As CD offers a fixed interest rate, you will get better interest rates on your money. After the completion of the target date, you can withdraw your money.
Investment Bonds
You might be unaware of the familiar term “BOND”. People prefer investment bonds to keep their money save and double their money. Whenever you buy a bond, you’re actually loading your money to a US government or a company. You can also purchase foreign bonds. With investment bonds, a government or a company will pay you high-interest rates on the loans. Investment bonds are low risk when compared to the stock market. However, the return on investment is also low.
Real Estate
Do you have your own house? Yes!!! You’re a real estate investor. Start investing in properties such as residential, commercial and more. There are few owners of these properties look for the people to manage and handle their properties. Owners hire a dedicated person to work for their properties. If you’re interested in controlling their properties, you can earn money without any investment. Also, you can purchase the shares at REIT i.e Real Estate Investment Trust, this is similar to mutual funds. The investors at REIT get annual profits.
Just Ask
Amazed how people just wipe out their pockets or credit cards to buy a product. They can act wisely by asking the product for free or less price. While buying a product always remember this phrase – “Just Ask!”
While purchasing a product ask the seller
- Can I get this product for free?
- Can you provide a discount?
- Shall I get the product by exchanging something?
Believe, in this fast-moving nation, there are a lot of things that are available for free – movies, music, news, electronic gadgets, cosmetics and other luxury products. If the product is not available for free, you need to get it for full price. Be prepared to negotiate the price whenever you shop offline.
Go Ahead and Shop
Shopping is a favourite thing ever. While shopping doesn’t forget to take these things – budget, partner and watch. Here the budget is the amount that you’re planning to spend while shopping. Your partner needs to keep you accountable. Set a time limit whenever you shop at malls. The more time you spend on shopping malls, the more things you might get. This can damage your credit card or wallet. Carry a stopwatch and save your wallet. A good shopping period might be 1 to 2 hours. When you use a credit card while shopping, set a limit on your spending.
Raw Material
Is raw material such as gold, silver, diamonds and oil are good investments? Ofcourse yes. The key reason for owning raw materials is their price rising within a short period of time. Many people are investing in other raw materials such as natural gas, iron and cattle. These are the investments that you can hold it in your hands. Unlike other commodities, you don’t need to spend money on maintenance.
Conclusion
Working in the 60s and 70s is not a pleasant way. When you get old and sick, working for 9 to 5 is impossible. Therefore you need to invest your money wisely when you’re at the 20s. Earning passive income from college days sounds like a cool idea to make money. Because you’ll be more energetic and enthusiastic during your 20s and 30s. When you start earning money, it’s also important to invest that money in the right way. Follow the above-investing ways and help yourself when you get retired.
