If you have money in the bank, you should make investments. Investing money is simply the smartest thing any adult can do. It’s a vital step when learning how to manage your finances, yet it also opens the door to some money-making opportunities. When done correctly, you can think of an investment as a turbo-charged savings account. Money gets tucked away out of your reach, preventing any excess spending. It grows over time, and you can reclaim it plus an awful lot of interest.
The basic concept of investing isn’t difficult to understand; you put money into something and withdraw it when the time is right. This can involve buying shares, property, gold – anything! Of course, profits aren’t assured as things can always go wrong. Still, here are a few ways that should help you make smarter investments throughout life:
Know what’s trending
Investors have made serious cash by hopping on trends just as they start forming. Two excellent examples of this have happened in recent times, and they also demonstrate how diverse your investments can be. The first is cryptocurrency, which started off as a very cheap investment a few years ago. Slowly but surely, it grew in popularity and began trending. If you were around to recognize this trend, you could pick up something like Bitcoin for a bargain price. Back in 2015, one Bitcoin was worth around $350 – it’s currently worth just over $18,000 right now!
This shows the value of jumping on trends, and the second example is Pokemon. Yes, Pokemon cards have surged in popularity this year, making them truly valuable. They’ve always been considered an investment, but some cards that were selling for a couple hundred dollars now sell for thousands. If you caught onto the trend earlier in the year, you could’ve already made a serious profit by buying and selling. So, stay updated – pay attention to the news and social media – and be aware of any upcoming trends before they hit a boom.
Work with experts
Are you an investment expert? No, neither am I, and neither are most other people reading this. But, investment experts exist out in the big wide world. They can help you find the best deals and understand how much to pay, when to sell, etc. Typically, these people are called ‘brokers’, and they can be found in lots of different industries and investment circles. If you wanted to invest in property, you’d find a real estate broker that could outline the best houses for your budget and the best investment opportunities. A stock market broker identifies the best stocks and helps you make a smarter investment.
Granted, the downside of this is that you have to pay them for their service. Still, you can make an overall profit because they help you find better investments. If you think back to the first point on trends, a broker will definitely be better suited to identify trends for you. They have lots of experience and industry knowledge that makes them savvy to things before the general public. If you want to invest with confidence, a broker is the way forward.
Find a safe haven
In the investment world, a safe haven is something that doesn’t provide much volatility. Simply put, you invest in an asset that remains relatively stable for many years. Even when times are tough, history suggests that these assets either hold their value or gradually increase. Stocks and shares are an example of something that isn’t a safe haven. Share prices can go up and down at all times, based on numerous external factors. While you can definitely make a lot of money, there’s always the risk that prices can plummet.
On the other hand, precious metals (like gold) are considered safe havens. They tend to hold their value at all times and will increase over time. If you looked at a graph of gold prices over the years, it would show a general incline. Do all your investments need to be this safe and cautious? No, it’s good to diversify and spread your wealth across various assets. However, it helps when you have a safe haven to fall back on as a little safety net. You’ll always feel confident that this investment will hold strong and you won’t lose money.
In summary, making smarter investments is all about knowing the trends, getting expert advice, and choosing a safe haven. It would be reckless to direct you towards specific things that you should definitely invest in. I’m not qualified to give that sort of advice, but you can use the tips above and apply them when searching for the best investments.