One thing that should be a necessity in life is investing your money into something smart. Sure, you can go through life saving your money, but why save all of that money and not make more!
By investing your money into something it doesn’t just sit there until you are ready to use it. It compounds and builds interest or the value of what you are investing in increases and makes you more money.
Investing in the right things can give you a larger emergency fund or even get you to retire sooner than you planned on.
Let’s dive into three of the smartest investments you can make right now!
1. Real Estate
So often overlooked, but without a doubt the smart investment anyone could make in their lifetime. Real estate is sure to appreciate annually. The problem is, most people are scared to make this investment because they don’t know how. Finding the right contractors and people in your corner means everything. It’s like starting your own little business.
Find a home that could be a fix and flip can make you a decent chunk of change. You find a home cheap, renovate it with cost-efficient materials, and sell it for more than your total investment. If you modernize the home, there is a 90% chance that you will make money on the property. The reason you got it so cheap is because it was outdated. Modernizing the home will create interest from ready-to-move-in buyers.
Investing in real estate can produce more cash flow in less than a year than a stock could in 20 years depending on different factors and the highs and lows. Then guess what you can do with that cash flow, invest it in more real estate and make even more money. You can get wealthy very quickly by investing in real estate, you just need to find the right properties at the right price point. The market isn’t always great, so you have to know when the timing is right.
Once you find a property and add value, you may be wondering what is my home worth? Get a professional estimate after the renovation is done and be on your way to counting your hundred dollar bills.
2. Stock Market
If you still don’t want to take the real estate risk, there is no easier investment to make than stocks. If you’ve seen the buzz recently around stocks like Penn National Gaming, AMC, Gamestop, and even crypto currencies like Dogecoin, you realize that there is money to be made.
You don’t always have to catch the buzz stocks, though. Investing smartly in stocks that typically grow annually, even if it’s not 400%, is smart. This means that your money that you could just have sitting in your bank account is sitting safely somewhere else making you more money.
If you don’t have the knowledge to do this on your own or you are unsure of what stocks to invest in, hire a financial advisor. They will guide you in the right direction.
If you want to retire at some point in your life and don’t feel as though you can make a decent amount of money from other investments, then maximizing your contribution with as much as you can to a 401(k) with a company match is a smart thing to do.
Most employers nowadays offer a retirement option with a company match up to a certain percentage. It’s not very smart if you don’t take full advantage of the full match. It’s extra money that you’ll be collecting long-term.