where to invest your money

5 Investment Insights: Where to Invest Your Money for Financial Growth

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Are you worried about where to invest your money? Or are you looking for reliable ways to do so? Having a solid plan or financial goals is a great way to start! Thinking about your future plans earlier is essential to accomplish them on time.

There are many ways you can consider putting your money into a Roth IRA, savings, stocks, real estate, and so much more.

The reason why people invest is that they either want generational wealth, retire early, or have financial freedom.

Growing your wealth might be a priority for you, but it is also essential to save as well. Remember, to win the long game, you must think about your long-term goals.

There will also be people who will hold you back and say you will lose money or money isn't everything in life. Indeed, money isn't everything, but money helps us to achieve our goals in life. These negative people are afraid and never take a chance, so they rub the negativity off you.

Investing can be scary, but it is an excellent opportunity to grow your portfolio. If you don't invest, you are missing out on many things. Indeed, there are chances of losing money in an investment. Still, you cannot overlook the 90% chance of the risk of another 10% possibility, right?

If you are determined to invest, look at the ways mentioned below. Here are some ways you can start to invest your money today.

Where to Invest Your Money

Everyone has their own circumstances, including myself. Let's say you have some extra money in your savings and want to put some in the stock market. Before you do that, you should know where you stand based on your salary, expenses, resources, liabilities, obligations, and objectives.

Don't take too much out of your savings when you might need money for something important.

Things to think about when getting ready to invest:

  • Set a goal (long or short)
  •  Decide how much risk you are willing to take
  •  Determine where you want to put your money (stock market, ETF, index funds, etc.)
  •  Pick an app you are most comfortable using, like Robinhood, Webull, Acorns, etc.
  •  Lastly, research the topic that you don't know so you can put your money to good use (do your due diligence)

What are the Safest Investments for Beginners?

You might be a beginner and are confused about where to invest your money. I know there are a lot of options to think about. It's OK to be afraid because you will not know everything as a beginner. 

Most people learn where to invest their money early in their lives so they can build wealth. It's about having extra money on the side or retire early.

Now, let's see where you should invest your money.

1. The Stock Market

The stock market is the most well-known and beneficial place for beginners and investors. When you buy a share of a company, you will own a little part of that company. If the stock you own goes up in value, then you just gain a profit. Easy right?

It can double, triple, or quadruple depending on how much money you put in to own that stock. Suppose you have 1 share of Tesla, which was $500. Tesla increases to $1000, and you now gain $500 more. If you had 2 shares of Tesla ($1000 total), you would gain $1000. 

Once a stock starts to decrease, investors tend to sell it. Once you sell it, you can use that money to invest in other stock if you want or withdraw it depending on your financial situation.

The stock market is usually a long-term game for most people, just like building your wealth. You can't get rich overnight because there are always trials and errors. Remember to do your research when you are starting out.

The common platforms people use would be Robinhood, Acorns, and Welbull.

2. Mutual Funds

Instead of owning one stock, you can own a basket of stocks called a mutual fund. Let me help you visualize it. You have a bouquet of flowers. Instead of owning the entire bouquet, you own one flower. Make sense?

The most common one everyone goes for is the S&P 500, which consists of 500 large companies in the US. This is great for a long-term goal because the low costs help investors keep more of the funds' returns for themselves and can be a great way to build wealth over time.

3. Exchange-Trade Fund (ETF)

ETFs, similar to mutual funds, hold a basket of securities but are traded throughout the day like stocks. Instead of owning a part of one company, you own a little piece of 5 companies. Most beginners start with this because they are considered lower-risk investments. They are low-cost and hold diverse stocks, which makes them great for beginners.

Not only that, but they offer lower working expenses than traditional open-ended funds, flexible funding, and excellent transparency by revealing all property and so forth. By investing in ETFs, you are diversifying your portfolio and making a great return.

4. Cryptocurrency

Cryptocurrency is a form of digital or virtual currency that can be securely stored on your computer or phone – to put it simply, a form of digital money. It uses cryptography to make sure the money isn't counterfeit, which means it has value even if there are no rules for issuing more of it in circulation yet!

Some cryptocurrencies you might have heard of are Bitcoin and Ethereum – these decentralized networks based on blockchain technology allow transactions between peers without relying upon third parties such as banks or governments involved with keeping track of who owns what at any given time.

Crypto can be a great portfolio to have, but it is more risky than stock. Since the risk is higher, the return is higher as well. If you want to invest in crypto, you should do it at your own risk. If you are starting out, I suggest you research before investing.

You want to have some knowledge and not invest blindly because that can be dangerous.

The main platform that most people use is Coinbase, where you get to sell and buy your cryptocurrency.

5. Real Estate

You hear many millionaires own little too many rental properties, right? Real estate is a long-term investment to grow wealth, so this is where to invest your money.

Purchasing a property may sound overwhelming when you are just starting to buy your first one. Still, it'll get better after the first trial. You learn as you go.

When buying a property, you have to think like an investor, not a homeowner. Most people who buy a property would rent it out to tenants for extra income. If this is too difficult for you, you can invest land through a real estate investment trust (REIT).

REITs allow you to buy portions of land with properties across the country. They are public and have the potential for high profits and long-term gains.

6. Side Hustle

Investing a small amount of money for your side hustle can help you earn more money. If you already have a full-time job, you can start a side hustle to increase your net worth. Nothing in life is a guarantee, so it's always smart to diversify your income. What if you lose your job one day? What do you do then?

If you have two to three income sources, you don't have to worry if one fails. You have another source to support you financially.

While stocks and real estate are popular options, alternative investments like a side hustle can be considered when deciding where to invest.

Start Your Investment Plans Today!

Knowing where to invest your money doesn't have to sound scary. You just need to do enough research. It's like going to school and going through the process. As a beginner, no one will know everything. People who are millionaires or billionaires have to take many routes to get to where they are. You can't get wealthy in one day because it's not possible. You have to learn and build over time.

If you want to be wealthy in the future, you should start by changing your money habits. Nothing comes easy unless you work hard for it.

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She started her blog, The Money Dreamer, when she realized the 9-5 job was not the lifestyle she wanted anymore. After designing for a while, she wanted a more meaningful life, which was freedom, so she decided to venture out. She took action so that she can live her dream life and decided to help people to live theirs by helping them how to save, budget, and invest.

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