Children whose parents teach them early on how to work carefully with money are the lucky ones. The sooner a young person gets into investing, the better.
Those who start investing early on in life can work to become financially independent sooner and also retire sooner if they would like to. There are many types of investments, and we will get into some of the different ways.
Investing in stocks
Many have discovered the thrill and profitability of online stock trading. The financial world is moving from analog to digital, making it important for future investments. Frank Porter Stansberry, American financial publisher and author of the monthly newsletter, ‘Stansberry’s Investment Advisory’, covers investments in real estate, commodities and the stock market.
He says that 2 companies revolutionizing the digital shift are insurance companies and royalty companies. Insurance leads to better investment results for most individual investors. Royalty companies raise capital and invest in operating businesses, buying a small percentage of the company’s future revenue.
Real estate
This has never stopped being a good investment, one of the best in fact. Not only is it an excellent investment, but an enjoyable occupation, and with excellent returns. A good way to invest in real estate is through what is known as real estate investment trusts.
These are like a mutual fund that holds individual properties, specializing in sectors such as retail space, storage, warehouses or office buildings, for instance. It could be that in 2020, apartments are a good choice, what with housing prices rising so. Renting is now the way to go.
While the potential opportunity for growth in 2020 is good, you want to maintain a hedge strategy for market uncertainty. REITs, as they are referred to, reward with steady dividend yield while maintaining low volatility. Another perk is that they aren’t susceptible to the trade tariffs, as real estate is not dependent on imports.
Get another job
A person cannot have too many jobs these days and it will be wonderful if you are able to launch your own business. If you do research, you will find a host of ways to start a business that does not even require a large upfront investment.
Once it is up and running, the extra income it will generate can pay you back. Today, with coronavirus still rampant, one of the biggest hurdles is deciding what business to be in. Probably the best business would be in the line of your specific skills or talents.
It could be making food, delivery services, an IT business, online schooling, care workers – wherever you have an interest in or whatever skills you have that can be built on. In fact, if you have less work to do, now is the ideal time to work on jacking up on your qualifications.
Pay off your debt
You may wonder how on earth paying off debt can be likened to investing, but getting rid of debt gives you more money to invest. Think of the credit cards in your wallet and the interest they charge. Paying off debt will mean having more money to invest in the future instead of servicing debts.
The best strategy is to pay off the debts that you currently have as fast as you can to start investing. Not only that, but it is also wise to try and remain as debt-free as possible because high balances negatively impact a credit score.
If you want to start a business later on and apply for a loan of sorts, your credit score will be thoroughly checked and credit card utilization needs to reflect timely and regular payments.
