What does it mean to invest?
Usually, the term ‘investing’ means to trade in money, or something of value, in return for something of higher value. For instance, real estate investing means you trade in money, in return for property than can generate money for you. Investing in stocks means you trade in money, in return for shares of a certain stock/company, which can generate money for you. Or, you can invest your time into something such as your garden, and in return, you get a beautiful garden.
Cryptocurrency - 2018’s most popular investment for millennials. You put money into digital currency, and watch as they rise or drop. This market is extremely unstable as it’s impossible to predict every uprise or downfall a coin (cryptocurrency unit) may have. This means that you’ll never know how much money you could make, or more importantly, lose. You have no control over the market. You have no safety net. I’ve seen people make tens of thousands in days, but I’ve also seen people lose the same amount within minutes.
Stocks - For several decades, stock trading has created tens of thousands of millionaires. The most profit is made when you study, analyze, and experiment with trading stocks. The downside to this is, unless you’re ready to stare at a screen for dozens of hours daily, this isn’t for you. The best stock traders don’t hold their money in single shares, they’re constantly selling and buying. It’s basically a full time job.
Real Estate - One of my personal favorites. Accumulate enough money and you can pay for the downpayment of a property. You rent the place out, and have the tenant pay the mortgage for you. For instance, if your mortgage is $1000 per month, and you rent the place out for $1500, you’ll have an excess amount of $500 per month. Aside from these monthly gains, if your property value increases, you’ll make capital gains as well. The world is running out of habitable places, one of the best long-term investments you can make is in the real estate market.
If you’re interested in reading about my perspective of investing in this Era, and how you can start, make sure to download my free ePublication - HERE.