“In investing, what is comfortable is rarely profitable.” – Robert Arnott
Investing in a stock market is the most common investment one can do. But have you ever thought that there are many other ways that you can invest your money? Once you’ve managed to save some money the first idea is to duplicate it. How? Once again, the first idea that comes to mind is to store it in a bank account. However, the benefits aren’t that great. “A bank is a place where they lend you an umbrella in fair weather and ask for it back when it begins to rain.” The wise choice would be to look for alternatives that could render you higher benefits than a bank. Easier said than done.
The first alternative one could think of is of course, investing in a company by acquiring shares, representing a small portion of ownership of the respective company. However, this can be tricky. One can never know whether the company will be a successful one, so instead of a decent way to make more money you could end up losing it if the value invested in drops. That is why, when making the decision of investing your money this way, you have to do a lot of research, in order to anticipate the possible outcome. Tech start-ups represent nowadays the industry that has the greatest outcome, taking into consideration the society we live in. Nevertheless, the market is saturated and without serious research you can never know what to expect. Invest wisely!
Another type of investment that gains popularity lately is the real estate. If you acquire the right properties in the right locations, your investment can turn out to be extremely profitable. You can either buy homes to restore them, afterward selling them for a higher price, or you can purchase apartments or homes all over town and then rent them for a slightly higher price that could assure part of your monthly income. Either way this is a profitable investment, if you know exactly which the locations people are constantly looking for are.
Paying your debts can also be a method of investment. Maybe you don’t acknowledge it yet as a way to invest, but on the long-term you will see the benefits. Firstly, debt repayment minimizes the financial risk. Also, you will able to save a lot of money once you’re not obliged to pay the banks anymore. Therefore, paying off your debts before making any other investments can be a very productive decision in the aftermath. That’s why, although listed last, this should be the first alternative investment you make.
To conclude, in order to make a wise investment that could render you a nice profit on the long-term you have to analyze every alternative and opportunity, do some serious market research, and try and exclude every variable that could harm your investment. As Benjamin Franklin stated, “An investment in knowledge pays the best interest”.