Financial independence is one thing every one of us dreams of achieving. But for most people, this can only be a dream yet to come true. If you don't work hard for it, then you'll find it impossible to achieve. But a regular 9-to-5 job is often not enough. Many have already decided to invest so that they can start fulfilling this life-long dream.
If you're a newbie investor, it can be hard to choose between the many investment options available these days. With a savings account and a certificate of deposit offering minimal interest rate premium, you might be thinking of better ways to spend your money and earn. You'll need to take some time and do ample research before deciding which investment path to take. To help you make a decision, we've gathered four investment options perfect for newbie investors like you.
Start with your 401(k)
Most people start investing by putting their money in a 401(k). Most people whose employers are paying for a portion of their contribution take advantage of this by increasing their 401(k) plan so that they'll have more money once they are eligible to withdraw the funds. Even if you can't match the amount your employer is contributing each month, you can gradually increase your contribution. Every time you receive a paycheck, a designated amount will go straight to your 401(k), which means that you can make sure that you're putting more money in your account without missing a contribution.
Start a small business
A business can help you earn more than what you typically can earn from a 9-to-5 job. The best thing about this is that you get to choose among starting your own company from scratch, buying a franchise, or being a silent partner. For instance, you love spending time dressing up, matching outfits, and finding accessories to match. You have the option to grab clothing boutique franchise opportunities, build your own clothing and accessories line, or invest capital in another company.
Buy real estate
Real estate is one good way to make your hard-earned cash work for you. Aside from buying yourself your own home, investing in properties can help you gain passive income by renting them out to tenants. Some choose to buy a multi-unit property so that they'll have one unit to live in and the rest rented out. You can also sell properties for a better price once you deem fit. If you don't have much capital, you can choose a real estate investment trust (REIT) and earn dividends in the process.
Choose an investment app
Investing used to cause a massive headache to newbie investors. Now, you can start investing even if you're just using your smartphone. One can simply choose between the many legit investment apps, download the app, read the instructions, and start investing. Some apps offer long-term or short-term investments. Some even help you save and invest at the same time.
All investment options have their own perks and drawbacks. Before choosing an investment option, it is crucial that you weigh in your options. Learn about the advantages that each investment has to offer, and keep in mind the risks that come with it. But one of these options could be your ticket to what you've always wanted: to achieve financial freedom.