People often think that investment is only for the wealthy, but that is not necessarily true. Investing your money is a smart move no matter how much of it you have, as the point of investing is to get a larger return, meaning you end up with more money in the long run. But if you do find yourself with more money than you know what to do with, instead of splashing it on a new car or some little luxuries, why not invest it and turn it into an even larger sum of cash? To spark your interest, here are seven beneficial investments to make in 2022.
People are always going to need housing, and the population is consistently on the increase, meaning that the demand and need for property is also growing. It can be incredibly difficult to get on the property ladder, with the size of the deposit needed for a mortgage being incredibly large and you having to prove that you will be able to meet the monthly payments. And once it all goes through, you’ll find yourself with around 30 years’ worth of debt. Getting past this first hurdle is key, because once you are through, there are two ways property can make you money: renting the place out or waiting for the value to increase before selling it on. Investing in property can end up making you a whole load of passive income; you hardly have to lift a finger and your bank balance keeps on climbing. That definitely sounds like a beneficial investment.
Shares, stocks and securities tend to be the first thing that comes to mind when the word investing is used. If you aren’t familiar with the stock markets, getting into equities can be a little bit daunting, but as long as you aren’t expecting to become the Wolf of Wall Street overnight, you can start off small and comfortable. Online broking services can help you choose where to invest and which shares to buy and sell, and tend to have low costs. On the other hand, whilst a full-service stockbroker will be able to give you detailed personalized advice that can be incredibly useful if you are not certain where to invest, the price tag may be a lot more.
3. Index Funds
With index funds, investors pool their money and then use this to invest in a variety of different assets. The money that you make from this depends on how much money you have contributed to the pool and the value of the invested assets. You are basically buying into a portfolio of assets and have units in each of the businesses within the portfolio. The flexibility with investing in index funds is minimal, but it can get you some considerable returns in the long run.
4. Exchange Traded Funds
Kind of like a combination of equities and index funds, exchange traded funds (ETFs) allow you to invest your money in a variety of assets, but these shares can be traded and sold if you wish. ETFs are a good investment for beginners and experts as they give you a wealth of freedom, are fairly inexpensive, are considerably less risky than investing in individual stocks, and they are available through traditional brokerages. They are a quick and simple way to invest in a range of assets and passively grow your wealth.
Currently, cryptocurrencies have considerably less regulations in place to protect the investor, so the risks with this one can be a little higher than other forms of investment. The famous success story with cryptocurrency was bitcoin, the value of which absolutely skyrocketed in such a short period of time that investors were able to cash out quickly. But there are also some more concerning stories where currencies just disappear into thin air after being heavily invested in, leaving a lot of angry investors with less money than before. To invest in cryptocurrencies, you’ll need to create an account on an exchange, and each one has its pros and cons so make sure you do your research first.
It may sound incredibly cliché, but investing in yourself is possibly one of the most beneficial investments that you can make. By furthering your education, you are giving yourself the knowledge to succeed in your career and progress up the ladder, landing yourself the highest paying roles within your industry. Whilst you may have to fork out a bit to start with, the returns come when you get that raise or find a much higher paid job in a different company. Taking a Master of Business Administration will give you the skills and knowledge that you need to succeed as a business leader and is without a doubt a beneficial investment to make. Aston University offer an online MBA that will equip you with the skills to deal with big challenges at the forefront of business and become a highly proficient, engaged leader. Investing in further education will not only open up a whole world of high paying opportunities, but it is also a fulfilling achievement.
7. Savings Accounts
You cannot get more simple and traditional than investing your money into a savings account. Savings accounts encourage you to deposit more and more money by having interest rates, meaning you get paid by the bank for keeping your money there. The more money you have in your savings account and the longer that you keep it in there, the more interest you earn and savings you have. However, it can take a long time to earn a significant amount of money just from having it in a savings account, but it is way more beneficial than just keeping it all in the account that you make your transactions through. Banks often have rewards or bonus offers on savings accounts, so keep your eye out for these. Overall, since it is minimal effort for some return, you can’t complain too much.
If you have a bit of money to spare, investing is the best thing you can do; and now you know there are a whole load of investment options, you’ve just got to find the right ones for you.