“Money doesn’t grow on trees” is a fairly common saying. Investing may not make money grow on trees, but can make it grow with relatively little effort on your part. Stocks and bonds are commonly considered investments, but they’re far from the only way to invest your money. There are lots of ways to invest beyond the public markets.
Buy Real Estate
Real estate is one of the more popular ways to invest. It’s often seen as a difficult avenue to break into though, since the cost of real estate tends to be so high. That doesn’t have to be the case. You can purchase a house or other livable unit and rent it out to generate income. The advent of businesses like Airbnb and Vrbo make it easier for homeowners to use their property as an investment. Remember, real estate is only truly an asset if it’s earning you money.
Buy a Business
Businesses are usually designed to turn a profit. That can make purchasing them a good way to invest your money and see returns from it. Owning a business can net you income without having to do all the heavy lifting yourself. According to Podium, while owning a business can give you flexibility, you still need to put in a lot of time. Businesses fail from time to time, so it’s important to screen the one you’re considering carefully before fully committing to the purchase.
Peer-to-Peer Lending
Banks can make a killing on loans and the interest they earn. If you want to have that opportunity, peer-to-peer lending might be worth exploring. According to the Corporate Finance Institute, peer-to-peer lending is a form of direct lending between people or businesses without involving a financial institution as an intermediary. This form of lending bypasses the traditional financial institution in favor of something more akin to crowdfunding. It’s relatively easy to break into, thanks to a relatively low amount of money needed to get started. You can earn money off of the interest of the loan you fund. The risk comes from borrowers who default. For that reason, it’s important to look at different P2P lending platforms and the investment carefully before you commit.
If the volatility of the stock market has you thinking twice about that avenue of investment, there are other ways to grow your money beyond public markets. Purchasing real estate or a business can be a good way to invest your money. Peer-to-peer lending is another option that, while relatively new, can yield decent returns. As it turns out, there are lots of options for investing for those who want to explore options beyond public markets.
For more tips on how to invest your money, book a consultation with Mike!
