The general consensus around money is, don’t spend what you don’t have. It is the basic rule of life, right? To not use or waste what you cannot replace or that which does not belong to you? That makes sense in some ways, but the financial world is so complex that you shouldn’t rely on blanket terms or phrases. In the world of making money the saying usually goes:
You have to spend money to make money.
Although it’s easy to think this only applies to the wealthy, time and time again the versatility of the financial world proves this to be wrong. No matter WHO you are, if you have capital of a reasonable amount, you can buy your way out of trouble or to a better tomorrow. What scares people is the thought of wasting money by making the wrong decision. “A penny saved is a penny earned” has long been the go-to philosophy of those that are frugal-minded. Maybe it’s time to ditch that thought and start making smart and lucrative decisions to make more money.
Invest in Suburban Townhouses
Investing in properties that are new, fresh and have an arm of strength behind them is a great way to use the money you have to make more. Now, you might be thinking isn’t all property stable? Yes and no, it all depends on what kind of area, location, city and style of property is being built. For one of the more safe routes, you should look toward townhouses. Townhouses are much like condos in the way that they are usually being built in large groups by one single contractor. They usually also have one overall owner who is looking to sell the properties either individually or as a whole.
Townhouses are owned by the local authorities. They are made for young families trying to get on the property ladder. Hence, they will often be modern homes, but come at an affordable price. Go crazy and invest your money in these homes to make a safe bet that – not only will you always have interested buyers – but you will have long-term renters as well.
Townhouses are usually only built in suburban areas with the mind of setting up or contributing to a residential area. You’ll first have to fork over some Homeowners Association fees (HOA) because it takes care of these row houses in the form of exterior management, such as landscaping.
Start or Invest In a Business
In terms of the upper echelons of investing, investment firms, property and business are the top 3. There are many ways of getting into the property market but investment firms usually have a very high threshold as they desire wealthier clients. Business is easily the most beginner-friendly investment strategy because there are literally countless options. You can start your own business if you have that desire and true belief in your product or service. As you can guess, all the proceeds will go into your pocket but the setup cost and challenges are very steep. Quite clearly, you’ll be spending money for the first few years without making large profits or even breaking even. But starting your own business is more so about passion and resolve, as success comes to those who are in it for the long haul.
Investing in a business is therefore the easier choice if you would like your capital to be immediately making returns. If you don’t have a lot of funds to use, then you always have the option of using a large personal loan which you can learn more about here. Personal loans are mostly used for major purchases, but if you invest into a business that will quickly give you returns on investment (ROI) then according to your chosen circumstances, keeping up with payments shouldn’t be difficult. Bear in mind, a credit score check will always need to be done with large personal loans. The company you are asking the loan from will check the current amounts you owe, and see if there is any outstanding credit card debt. Your payment history will also be analyzed, the types of credit used and any new credit you have.
Spread It Wide
Index funds are fast becoming the best investment instruments in the entire investment market. They are easy to understand, great for raw beginners and thankfully they are also open to everyone to invest; meaning there’s usually no wealth threshold that is too high. Index funds are quite simply, a collating of multiple companies and their stock in one portfolio file. Made up of many industries, they are incredibly versatile and varied. This naturally spikes up the chance of making a profit in any one of those company stocks. The money is spread wide, divided up into the various stocks which evens out the risk. If one of the stocks dips and loses value, another stock can rise and balance it out so you either end up breaking even or maybe even still making a return.
The most well-known stock market indices are FTSE100, FTSE250, DowJones, Standard & Poors, Nasdaq and Amex. However these indices consist of blue chip stocks and thus the very wealthy invest their money into them. However, a private index fund is privately created and can consist of a completely customized portfolio. A private index fund that is right for you, will take some scouring on your part to find. The risk and reward must be weighed up heavily. Some private index funds might seem like they offer a great return but the risk might be too high such as an index all made up of small businesses the returns might be low with the prospect of them becoming higher later on. Don’t fall for the scratching a lottery card style of investing, always go for the most stable indices even if they do seem like a low but consistent return.