Investing is a word frequently used by the rich and famous. They take their funds, place them in the trust of a company or business, then expect to see some returns in the future to make more profit and support something they believe in. Whether or not it works, they usually get something out of the investment and their overall aim is to increase their funds. It goes without saying that you have to spend money to make money, and investing is the most common example of proving that point.
However, investing is usually something that can only be done if you already have a considerable chunk of money. This is because investments like starting a business, real estate, or even stocks and shares can be relatively expensive and risky for first-time investors. As a result, the average joe can’t actually invest in anything and their income will come purely from their job. This can put many people off the idea of investing because they think it involves a lot of initial startup money, but it’s actually possible to invest money even if you aren’t already well off.
So to give you some advice and a few ideas, here are investments that everyone can get involved with regardless of if you’re an average joe or a wealthy individual looking to extend their wealth.
Whether you’ve bought a home recently or if you’ve come into possession of one, having an extra property can be a huge opportunity to start something big. The first obvious way to invest is to clean up and decorate the home to make it worthy of renting out to paying tenants. This usually needs to be done through a real estate agent, but there are times when you can do it on your own if you have sufficient knowledge.
If you want to get on the property market, then the other option is to flip your home. Many websites are perfect for helping you out with house flipping and the concept behind it. It’s the perfect way to start an investment portfolio and the flip can sometimes give you more than double your initial investment back, resulting in some tasty profits that are sure to win your attention.
It’s the perfect investment to get started with if you’re lucky enough to come into possession of another property, but it’s also possible for people who already own homes to take out another mortgage for the sake of owning a seconding house to use as their stepping stone into the property development market.
Starting a Business
Although it’s a difficult investment to start up due to all the knowledge required, starting up a business or founding a business with someone could be a fantastic way to invest your money. If you have a business-savvy friend that knows what they are doing, then you could become a partner in starting up a company with them and being the person that funds the operation. It might seem one-sided, but if you’ve got plenty of savings and you want to watch it grow, then you need to work with the right people to make it happen.
Starting a business is difficult because of all the different factors involved and you’ll essentially be giving your money to someone and hoping they know what they’re doing. Alternatively, you could take your money and start your own company, but you need to be mentally prepared for the challenges you’ll face, and there’s always a chance that you’ll fail and lose your initial investment. Make sure you come prepared by reading plenty of articles like this one at entrepreneur.com and invest a lot of your time into learning about the market you want to start a business in.
Peer to Peer Lending
Another form of simple investment that everyone can get involved with is peer-to-peer lending. It’s also known as social lending in some circles, and it essentially means that you’ll be lending money to people directly instead of doing it with a bank as a middleman.
It boosts the amount of interest you get on your investment (much like a savings account but with higher returns) and for the one borrowing money, it reduces the interest rates on small and medium-sized loans. This makes the act of lending and borrowing more enticing to people since they don’t need to do it through a bank. It’s also much more personalized than lending your money out via a bank since you’ll get to know the person you’re lending to. This could give you some sense of satisfaction knowing that you’re improving the life of someone, as opposed to your money going to a corporation you don’t support.