There’s a buzz of advice circling about how to hold your money closer to the chest, but there’s less guidance when it comes to investments. The reason is primarily due to the intimidating and daunting nature of investments. Yet, bear in mind that you don’t need profound understanding of the stock market to be an investor. Investors are individuals who judiciously gamble their wealth, hoping that their investments will provide lucrative returns in the future. There are several ways the average person can make this happen and I’ll share three of them here.
Purchase a Home – Home ownership may not be in everyone’s future plans, but it’s a possibility that deserves more consideration. Buying a home comes with its own set of benefits. To start with, investing in a home allows you to build equity rather than wasting money on rent. Secondly, mortgage payments are consistently less than you’d pay in rent for the same property. Thirdly, today’s interest rates are as low as they’re likely to be during your lifetime. Lastly, as you accumulate equity, you can secure a home equity loan, which is one of the economical ways to borrow cash. Still not convinced? Think about this – one day, you might become a landlord, earning from others to reside in your property. Although buying a home is a significant expenditure, it can be tremendously rewarding if you are prudent.
Pursuing Further Education – If you’ve finished school, returning may seem daunting. However, it’s worth assessing your prospective career path. Consider your potential earnings, job security, job satisfaction, and whether your current job grants enough time to nurture your personal interests. If you’re not satisfied with these aspects, then returning to school should be on the cards. You can choose to enhance your knowledge in your current field through a certification or associate’s degree, or change your path entirely. Whatever you decide, try to keep your loan to a level that allows you to repay it within two years of employment. This might not be feasible for everyone, but the goal is to ensure that the additional income from your new skills and experience exceeds your debt.
Sell heirlooms and structured settlements – Often, people hold assets that they don’t frequently consider. You might possess family heirlooms, bonds, or a structured settlement that you could easily sell for extra money. When it comes to settlements, the payout schedule may not provide a lump sum to make critical investments. By selling your settlement, you can pool the money to use in any of the aforementioned ways. Alternatively, you could find another saving or investment opportunity for your money. Approval from the courts may be needed, but they’re likely to consent if you propose to generate more money from the funds. Similarly, selling heirlooms can be a viable choice, but remember, it’s essential to ensure that your investment will bear fruit in the long term.
