The best thing you can do with some extra money aside from putting it on your savings account is to invest it. Not only will you restrain yourself from mindless purchases in such a way, your investments in 2018 may grow times bigger by 2019. Sounds good, but usually people start with a question “What to invest in?”. The options may vary from year to year, so here are 4 best picks for 2018.
Being the most popular thing to put money into, stock market won’t surprise anyone. However, there’s a technique that’s becoming more popular – Dollar-Cost Averaging (DCA). This method allows you to invest bit by bit over any length of time. When the prices within the market are high, you buy less shares, and when the prices get low, you buy more shares, aiming at a fixed amount of money invested each month. As the result, after some time the average price of the shares you’ve purchased may turn out to be lower comparing to the then-current price.
Peer-to-peer lending services make you a bank, as you lend some of your excess money to other people, getting them back with a return rate. These easy-to-use websites are less famous than stock markets, but they are a good alternative, sometimes even more profitable. P2P lending allows you to invest in the projects of other people, having return rates of 5 and more percent.
The average minimum Peer-to-peer lending investment in 2018 is $1,000. The service breaks the sum down into small parts ($25 and up), sending them to hundreds of people who apply for loans. The riskier the case or project, the more the return rate, but the average is 6%.
Real estate is a riskier option and it usually needs a lot of time, money, and a landlord/entrepreneur mindset. The latter may even help you start a small business involving property. To update/gain the knowledge on that, look through the articles on small business and entrepreneurship gathered by Daniela Bucatele on her website.
However, if you don’t want to go that far, there’s another investment option – real estate notes. Not everyone can deal with physical property well, but investing in papers allow you to gain profit without actually dealing with it. This process requires some degree of trust to the person that offers you the notes. However, if the project you put your money in pays off, some pretty interest or dividend will be waiting for you.
Sounds a bit arrogant, but consider investing in yourself this year. It will definitely pay off, as this option is totally free of risk. Get yourself some books on self-development, leadership, financial strategies, etc., and read at least one book a month. Start a new course, develop a new skill, increase your professional worth! Stock markets, peer-to-peer lending, and real estate will always be there for you to put your money in. But any investment will bring you much more profit if you have a strategy and some knowledge to make wise decisions.