What would you do if you have some spare money? Buy something nice for yourself? Go to a trip that you always wanted or would you be willing to invest that money in something that will bring you some profits? Well, while buying something nice for yourself or going on a trip might be tempting, the last idea is even better since it will help you generate money for more trips, in the future. Invest now and enjoy the advantages later. Below are some savvy ways to invest that spare money that you have and enjoy the benefits not long after.
Real estate investments
Real estate investments will always be at the top preferences of those with some spare money to invest. You can try various approaches, as real estate experts advise, from flipping properties to renting the property and even investing in private real estate. This last suggestion involves no stress and management matters that usually come with being a landlord. It’s a relatively new concept but it successfully gains more and more attention from investors’ part. You won’t have to paint the walls, deal with tenants and you won’t be assaulted by night calls and costly repairs.
There are plenty of online platforms where you can start your excess cash investments and lending ones are just perfect for this purpose. Peer-to-peer lending allows you to loan people in small increments, similarly to how banks proceed. In return, you will get a generous rate of return, sometimes up to 10%. For some reason, while people think that it’s not a good idea to lend strangers on the Internet, even experts like Joseph Pacini think that it might be secure and profitable. So, even if you lack investment experience, you might be able to make some great deal of money out of your extra finances.
Health savings account
Whenever you have some bigger amounts of money to spare, put it into a health savings account. These accounts are targeted at individuals and families that have high deductible health plans. this allows them to enjoy bigger tax benefits. First of all, this money is deductible on your federal taxes. Then you just keep your investment in the account and enjoy as it grows, tax-free, until you’re ready to withdraw it. The money can be withdrawn without any reason, plus interest, once you hit 65 and it’s everything that you need to that period in your life. Triple tax advantages: no tax when you withdraw, no tax to grow it and you deduct your contributions on taxes.
Invest in yourself
For the younger ones out there, this may be the best suggestion. Invest in yourself and enjoy a brilliant career in the future. You can invest in coaching and mentorship as these both will contribute to your development and skills. This is money well-spent as you will get in return mentorship and guidance in whatever field interests you and you interact and learn from like-minded people. Those who have invested in such programs warmly recommend those to those at the beginning of their careers.
Have you read?