Investing can be incredibly confusing. There’re so many options you can choose from, and once you’ve selected the what, you still need to decide on the who and the how.
Well, never fear, below you will find four of the best investments you can make this year.
Property
Real estate is one of the few “safe” investments out there. Sure, there’s a chance that your new property will go down in value, but there’s a far larger chance it’s going to appreciate.
Property is also a great way to generate a passive income thanks to the ability to rent it out.
Once you’ve decided to get into the real estate game, you need to choose between private or commercial real estate.
This may come down to personal preference. However, choosing to go commercial, while generally requiring a more substantial initial outlay, carries less risk, requires less maintenance and often yield a higher return.
Necessary Stocks
You may be wondering how a stock can be “necessary”? In reality, it’s a fairly simple distinction. It can be argued that stocks in luxury items can be gambles because not everyone can afford them. Necessities, however, are exactly what the name suggests. Consider buying “safe” stocks in a diverse food manufacturing company or a producer of white goods. Because there will always be a demand for these kinds of items, it is far safer to buy stocks in associated companies as they’re less likely to fold or operate at a loss.
Established mining companies or large pharmaceuticals are also generally fairly safe bets.
Obviously you will need to do your research and decide which companies and investment amounts work best for you, but the stock market is far from dead.
Your Future
You may also want to consider a simple term deposit investment. There’s no risk involved here because you’re literally just locking up your own money for a set amount of time in order to gain higher interest than you would in a standard savings account.
Firstly, you need to work out how much of your savings you can spare, and for how long. Once you’ve done that, getting a term deposit is as simple as finding the bank that offers the best deal, depositing your cash and forgetting about it until the interest rolls in at the end of the term. Bonus points with this one if you can roll over your term deposit with Interest included since this will naturally create a larger return at the end of each cycle.
It is important to note that term deposits require a rather sizeable deposit to provide significant returns. However, it is still worth investing any spare money you may have into one as you are going to earn more than you would have had it been sitting in a standard savings account.
Yourself
Investing in yourself can mean many things, perhaps it’s going to the gym or spending more time on self-care. The most profitable way, however, is to invest in further education. As your skill set becomes broader and more advanced, new opportunities will open up to you.
From there, better pay rates are almost guaranteed to follow.
Investing doesn’t have to be a big scary monster that you avoid at all costs. All of the method outlined above come with minimal risk, and maximum reward. Think about what would best suit your lifestyle and then go do it. Investments improve lives far more often than they are detrimental.
