Regarding investments, people often jump on the next big thing. For example, the idea of cryptocurrency originated in the 1980s. There was an attempt in the 1990s, but it became real in 2008. And while “online people” were buying it then, and it blew up in 2010, it’s only in recent years it’s become a real option for investors of all backgrounds.
Given today’s economy, many people are searching for longer-term investments, and crypto, among others, could be just the ticket.
For onlookers, it can be challenging to understand. For those who got in on the early market, there was a lot of money to be made. But, there are booms and busts frequently enough to make it a high-risk investment option. It would help if you had a high-risk tolerance and a healthy bank account to get rich quickly. But if you want to get wealthy from investment, you must play the long game because it will take planning and discipline.
Crypto is volatile, it’s high-risk, but it can be a long-term investment. If you’re thinking long-term, Bitcoin, Tether, and Ethereum offer more stable long-term investment options. Bitcoin is the original in terms of the cryptocurrency that sparked the craze.
If you want to take this path, you must be prepared to hold onto your crypto dearly. In the last ten years, Bitcoin, for example, has gone through almost a dozen dips of 40% or greater. You have to be prepared to ride these out and believe it will bounce back. Remember that you need to pay crypto taxes on any gains you make from crypto.
2. Savings account
It’s more challenging to find a savings account that pays out as well as it did historically. So, a high-yield account is a safe way to build. A typical savings account will come with an interest rate of 0.01%, but a high-yield account will work much harder. For example, Rabobank offers 4% and Macquarie 3.2%.
Property investment is a long game unless you have the cash to buy and renovate properties to flip. There is nothing guaranteed when it comes to property investment. But you have options. Purchasing a home of your own to live in is technically an investment. You can also invest by purchasing commercial or residential property to let out. You can secure a bank loan to do this, but the loan rate is lower, so you still need a healthy amount of cash to get into this part of investing.
4. Build a passive income stream
When you invest in a company, you receive dividends from its profits. This is an incredible passive income stream if you have the money to invest. Risk is involved, of course, as you rely on the business making a profit. Look at the dividend yield to better understand your expected return.
Investment in a business as a silent partner is also an excellent way to ensure a consistent stream of passive income. Starting a business can be risky, but you can reap the benefits without doing the work. You don’t get a say in how the business operates, but you can enjoy a share of the profits.
Affiliate marketing is another option, but more work is required in passive income as you generally need to link these in blog posts. However, you can also use social media for this if you have enough of a following. You can also post your old photographs on stock websites and earn money whenever someone uses them.
Managed funds are a traditional investment path, but it is entirely passive because you hand the control over to someone else. An adviser will choose which stocks to buy and sell on your behalf and will do so in your bests interests. The key is finding the right adviser to manage your investment funds.
5. Invest in yourself
What better way to make long-term money than by investing in yourself right now? A certification or degree can increase your job market worth and earn more income. Consider what would make you more marketable in your industry and look for ways to pursue new skill sets to maximize your salary options.
Before you jump into any investment situation, you should build six months’ worth of living expenses. Whether laid off, injured, or ill, you will need money to live on in an emergency. So have that financial foundation before you invest in the longer term.