The idea of making your money work more aggressively for you is borne out of the need to prepare for our futures. We want to make sure that we have the money we need for our retirement, we want to enjoy our twilight years, and we don’t want to have financial concerns as we grow older. The thought of scrimping and saving while we should be enjoying our time away from work can have a detrimental impact to our mental health. Watching your money accrue minimal interest in a savings account is the least risky way of ensuring that your money stays safe, but it’s also the least lucrative way of making your money work for you.
Instead, you need to look at pumping some of your hard earned cash down other, more profitable, avenues. Keep some savings within your account to ensure that you have a tidy little nest egg come retirement day, but also broaden your investment portfolio by taking on a calculated risk. The riskier the investment, the more potential return you can receive. However, if the investment folds, you lose your money. Making any sort of investment is risky, which is why it’s vital that you spread your money widely, across a range of risks and don’t put all of your financial eggs in one basket. Take a look at this ultimate guide to side hustle investments to inspire your preparation for your twilight years.
Property
Bricks and mortar are often seen as one of the safest long term investments for a side hustle option. Consider purchasing the worst house on the best street. This way you will always be buying a property in a solid location. Changing the property, renovating, extending or decorating will ensure that you are spending money to make money. Adding value to a humble abode and outperforming the market is the aim of the game.
You need to consider whether you will be flipping a home to sell it within three months of purchasing it for a profit, or whether you want to keep hold of the pad a little longer to rent it out and accrue equity within an asset. You could choose to head to auction, and purchase a property below market rate. Be aware that these homes tend to be in a dire condition requiring an awful lot of work to bring them up to a habitable standard. However, if you have free weekends, your handy with a spot of DIY and you can manage a project in a timely manner, then this could be a lucrative way of making money. Keeping a home to rent out, to then sell a decade later will ensure that you see a handsome return on your initial investment.
Bitcoin
On the flip side, there are investments that can seem too risky. However, when you see the stories of virtual currency increasing in value from $1000 to $10000 within twelve months, you may be tempted to jump on the bandwagon. Bitcoin and ethereum can be difficult concepts to get your head around. You cannot hold a bitcoin or spend your ethereum down at your local restaurant. This is a wholly online and virtual currency.
To invest in bitcoin, you need to clue yourself up on the blockchain technology behind the concept. However, bitcoin is a hugely volatile currency that doesn’t tend to follow trends and can be a law unto itself. It is unregulated on the whole and certain countries and credit card companies have banned its usage or purchase. If you want to venture down this investment avenue, you will need to have nerves of steel.
If you’re keen to look into this investment option, it pays to read up on the technology and the market by looking at a site like https://blockchain.intellectsoft.net/blog/public-vs-private-blockchain/. Only when you are comfortable with the process of investing in virtual currency should you spend some of your cash. You must keep an eye on the market and sell when you feel it’s time to get out. Whatever you do tread carefully, and don’t make bitcoin the center of your investment portfolio.
Forex
Have you ever fancied trading in stocks and shares but you’ve been too nervous to take the plunge? As such, the world of Forex could be more palatable. Forex trading, as described at https://www.fxcm.com/uk/forex/what-is-forex/, involves buying and selling currencies against one another to make the most money. Buying Yen against the dollar and selling the British pound against the Remnibini is a complex concept. However, by looking at currency and economic forecasts, you can predict the best way to spend your money across foreign currencies to make money.
If you’re tempted to have a go from the comfort of your sofa with a laptop, open a dummy account initially. This enables you to practice with pretend money on the world stage. If you are finding that you are losing money left, right and center, this investment option may not be for you. However, if you are beginning to see lucrative returns, you may be ready to take the plunge with your savings.
Professionals
If you are keen to explore a range of investment options to build a varied portfolio, but you simply don’t have the time to take an active approach to your finances, you may want to get a professional on board. For a small fee, an investment manager or financial advisor will discuss your investment requirements with you and create a portfolio crafted to your risk requirements. With a range of high, medium and low risk options and across a variety of stocks, shares, investment funds, property and wine, you could have many monetary fingers in a range of financial pies. Spreading the risk should ensure a safer investment portfolio and a greater chance of profitable success.
Working out how to invest your money when you have a nest egg wallowing in a savings account can be stressful. However, by taking a look at your options and by playing to your strengths and interests you should be able to craft an excellent, profitable and long term investment portfolio.
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