6 Investment Options to Boost Your Wealth
Whether you just started earning, or if you have been earning for quite some time now — you should definitely be in the investors club. If you are not, you have been letting off additional wealth, and that is not a wise thing to do, we all can agree on it.
So irrespective of when you started earning, you should really be investing a proportion of your income and in multiple investment schemes or areas. This ideally comes down to having a diversified portfolio, but that is different topic altogether, so here we will focus on what all options you have for investments.
You must have already heard, the sooner you start, the more wealthier you can be — that is the power of compounding. It essentially means, letting your money make more of it for you, as soon as it gets into your hand! Don’t wait to start your money factory when you have the material to build it already.
1. Safe Investments with Guaranteed Returns
If you would ask for my suggestion, I would say start with safe investment options, that give you a guaranteed return over a certain period. The return might be low, compared to other schemes, but the risk is very low, and since you are getting into the investment habit, it’s good to start safe, build a strong foundation and a backup to fall back on in the worst case scenarios!
These options can include, but aren’t limited to-
→ fixed deposits at banks or post offices
→ government bonds
→ retirement funds (goes by different names in different countries)
→ pension funds (goes by different names in different countries)
2. Real Estate
This is not as easy as it looks. You probably are getting ideas such as buying an apartment of condo somewhere, holding it off or renting it for years and then selling it at a profit? That is not the best way to go about it.
You need to do research about the location that you are planning to buy or lease land on. Based on the location and how much it will develop in the coming years, you can estimate the increase in value of your property. You can invest $1,00,000 and get a return of 100% from one location, and a 500% from a well researched location, in the same time frame, so do your research well.
If you want a better idea on this, you should go and read this book, Rich Dad, Poor Dad — by Robert Kiyosaki and Sharon Lechter. Robert has explained few instances where he was able to make great profits from real estate, even in the times when property prices weren’t in the high hot zone!
A property can also keep paying you while you are holding it. You can rent out your land or flat or shop, if you don’t plan to use it yourself — and voila, you have a fixed payout on a monthly basis.
3. Stocks
Stocks have become quite a topic among the middle class and above — especially after the first covid lockdown, that happened in the early 2020. Too many apps popped up, allowing you to trade in the stock market from the comfort of your home.
Majority of the people I know, started trading in stocks without any knowledge about how the market works, or why they chose a company’s stock over the other.
Again, I would suggest that you take some basic courses around stock trading, learn the basics of fundamental and technical analysis — and then begin investing in the same. There are lots of free courses available on the same, but the content would differ based on which country you want to trade it. Varsity by Zerodha is an amazing app to learn about the Indian stock market.
Also, I would suggest that you begin with long term holding options rather than day-trading, and good stocks will most likely give a great return in the long run!
4. Crypto Currency
Crypto currencies have been a hot topic for the last few years. It turned some people into millionaires overnight, attracting the attention of a huge segment of the financial savvy population, who are always looking to get rich soon (isn’t that so?).
Now before you think about it, let me tell you that most countries do not have well defines laws around crypto currencies, and in some countries this isn’t an option to invest in. So do check out what is the scenario in the country you are living in, and then proceed with it if the law is in favor!
You will again get too many options to invest in — but this is a very volatile form of investment, it can make or break your invested amount in a very short span! Also, since this is a completely digital of investment, comprising of zero paper trail, you need to be very safe with your crypto wallet and credentials.
5. Side Hustles
Are you someone who likes to follow their hobby or passion in the free time, and think of making, umm, some money out of it? If yes, you have every reason to start a side hustle (or more than one, if you can manage) and earn some money through these.
It can be difficult to maintain if you have a full time and hectic job, but there are people who manage these well. Along with your full time job, you can earn as a freelance web developer, consultant, writer, vlogger, cycle repairs, etc. Basically, boundaries don’t exist as long as you love what you are doing — and the extra cash is a worthy reward.
Who knows, you might end up earning more from your side hustle than your day job, and might decide to turn it into a full time business for good!
6. Yourself
Something you weren’t expecting? But believe it or not, you are your biggest investment. Investing in yourself is of the highest important!
“Loving yourself isn’t vanity. It’s sanity.”
- Katrina Mayer
You must take good care of your physical and mental health. Exercise regularly, even if not too intense — consistency pays off more than we give it credit for. Eat healthy food (not always though!). Spend time with people you love, invest time in relationships and friendships.
Try to become your best version with time, and strive to become a good person — someone better than who you were yesterday.
I hope this helps you out in some way, and in case it does, you can drop a clap on this article, and also leave your feedback in the comment.
Your appreciation will go a long way, and your constructive feedback will help me get better at it!
