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The two quarters of 2018 have already passed and it is the time when most of us have money to invest. Perhaps it can be because of the raise that we have got, or maybe the bonus of the last quarter that is jumping inside our pockets. Whatever the cause is, we all need to be smart in investing our hard earned money so that it can be available to us for future emergencies.
We all know a plethora of investment options, but most of us do not understand where to invest. In the terms of investment, this situation is known as “paralysis by analysis”. According to this, we invest so much time into researching and analyzing the options to invest but end up selecting no option. Resultantly, the extra cash that we have put aside for investment gets consumed by some unexpected expenses or paying out some bills.
Well, this is the story of almost all of us! The very cause for the same is that we do not have any clue about the right option despite knowing the myriad of investment ways. Or we do not understand which investment option is according to our earnings and expenses.
The best way to start investing is to act fast. So, if we want our cash to not to disappear in unexplainable expenses, it is required to invest it as soon as possible. Invest a small amount of time in analyzing the investment options and finalize a few immediately.
One can think that – investing in the stock market is the most basic advice that one can get from anywhere. But, wait! Here, we are going to tell some of the insights of the investment option.
It is suggested to not to invest your every extra USD in the stock market instead pour a small amount of money and over time (not all at once). This method of investing in the stock market is called “dollar cost averaging”.
Under this method, it is required to tickle your money in the investments for a length of time. This length could be 12 months, 18 months, or few years. Another best investment option for the stock market is investing in EFTs or mutual funds.
The second investment strategy to consider in 2018 is real estate. However, this does not mean to run out and purchase property(ies). There are plenty of investment options in real estate available without any involvement of physical property. One alternate option in this category is investing in real estate notes.
In real estate notes, you do not buy a property instead you get chance to invest in it. Suppose, someone, purchases a pool of real estate properties and asks you and some other people to invest in his project. In this case, all the investors will get the dividend from the property owner and hence, it is known as real estate notes.
However, trusting a person requires a lot of courage, but if there is some renowned real estate company that is involved in this process, it becomes easy to trust. The good news is there are various companies like this and one of which is Fundraise.
The company deals in commercial properties and allows investors to invest their small sum of money. In this way, you have your share in the commercial property, but do not have to deal with or see the property itself. Moreover, companies like Fundraise pay a good rate of return.
Another option to stash some amount of your extra cash is peer-to-peer lending through lending companies like Prosper or Lending Club. These companies give you a platform to loan your money to individuals and you get the return in small increments just as a bank. The best part about this kind of investment is that you get to earn quite decent return rate – generally up to 6%.
Investments like life insurance policy; System Investment Plans (SIP), etc. are some of the personal investments. In a life insurance policy, you do not directly get money, but you get lifelong protection against the value of that money.
On the other hand, System Investment Plans or SIPs are investment plans that invest your money systematically. Another personal investment option is reading books. Yes, reading lots of books not only improves your knowledge but also your personality. The intellectuals, financial advisors, and other learned person say that the best investment that one can make for him/herself is reading books.
These are some of the best investment options that not only allow us to safeguard and outfit our finances but also improve our knowledge. And, the mantra to make the most out of your investment is to be quick in taking smart investment moves.