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Where to Invest your Money to Grow your Wealth?

(Disclaimer: this post may contain affiliate links meaning I get a commission for recommending the products to you guys. Read full disclaimer here).

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

There are many ways you can consider putting your money into: 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 an important goal for you, but it is also important to save as well. Remember, if you want to win the long game, you have to think about your long-term goals.

There will also be people who will hold you back and say you are going to lose money or money isn't everything in life. It's true that money isn't everything but money helps us to achieve our goals in life. These negative people are afraid and never take a chance in their life so they are rubbing the negativity off of you.

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

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

Money in Savings

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

Don't take out too much out from your savings where you might need money for something important in the future.

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 in (stock market, ETF, index funds, etc)
  • Pick an app that 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 in good use (do your due dilligence)

What are the Safest Investments for Beginners?

You might be a beginner and are confused about the options you have out there. I know I was there. In the beginning, I was like what is a mutual fund LOL. Don't worry I'll try to simplify as much as I can, hopefully.

Most people invest so that they have extra money on the side or to retire early.

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

1. The Stock Market

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

Depending on how much money you put in to own that stock, it can double, triple, or quadruple. Let's say you have 1 share of Tesla which was $500. Tesla increases to $1000, 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 along the way. Remember to do your research when you are starting out.

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

2. Mutual Fund

Instead of owning one stock, you can own a basket of stocks which is 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 which are 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 are owning a little piece of 5 companies. Most beginners start off with this because they are considered to be 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 used 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 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.

You can invest in Crypto 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 do a little research before investing.

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

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

5. Real Estate

Last but not least is real estate. You hear many millionaires own little to many rental properties right? Real estate is considered a long-term investment to grow your wealth so invest your money in it.

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

When you buy a property, you have to think like an investor and not as 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 real estate investment trust (REITs).

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

I hope this short summary was informative for you all. If you are about to take action, I suggest reading and learning more before investing. Make sure you know what you are doing.

These investments do take time and you can't get rich right away. To be wealthy you have to think like a millionaire and invest long-term.

You have to change you money habits if you want to grow your wealth. Nothing comes easy unless you work hard for it.

Thanks for reading, and I'll see you in the next post!

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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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