In today’s financial climate, there is distrust, and a lack of faith in many of the big-name banks. It’s no surprise, with low interest rates for savings, and high interest rates for loans and overdrafts; people are constantly looking elsewhere for places to invest their hard-earned cash. Fortunately, there are an array of ways and places to put your money, that will reap you far more rewards than in a traditional bank setting. There’s also something to suit most budgets; whether you’re looking to invest small and slowly, or put a significant amount into something, it’s about choosing the smart option for yourself and your situation. It’s crucial to do your research first, in whatever area you’re leaning towards, so that your decisions are always informed, and you can keep any risk factors to a minimum. Impulsive and rash choices have no place regarding your income and money, even if you are feeling bored of the banks.
Therefore, it’s time to start considering your options carefully, and thinking about how much money you wish to invest, and where you want to put it. If you’re a novice when it comes to putting your money into alternative investments, it’s worth spending some time to find out about tactics that have been successfully used beforehand, and the risk rates are low. You’ll also need to consider how much effort you want to put into keeping an eye on how things are progressing; many options can pay-off successfully, but need care and regular attention. Whereas, there are also plenty of ways to invest money, sit back, and watch it grow steadily, without having to do much, or anything, at all; a true alternative to a bank.
So, grab a physical or digital notebook, and spend some time listing your realistic options, preferences, and money goals. You can then begin to look into how, when, and where to invest so that your research can become more rounded, and smart decisions are far more stratforward. The following are some ideas, inspiration, and advice for those who are fed-up of leaving their money in the bank to do very little, and who are ready to look into alternative ways to make the most of their income.
Property Investment
It’s no secret that many people utilize property and real estate investment to make their money back both quickly and steadily, and often, the rewards are much greater than the original investment. Therefore, it’s a financially savvy choice for many, especially if you’ve got your eye on the ball regarding where and when to invest your money. For a long term investment, where you can make your money back steadily; becoming a landlord in the traditional sense, is a great option. You’ll have your money tied up in an asset that will naturally increase in value over time. You’ll also be able to use the rent you receive to pay off any mortgage taken out, with some left over to re-invest, or help to pay it off quickly. Once that property is paid for; there’s the option to keep it so that you can receive a regular monthly income, making it a great investment for your future, or to sell for a lump sum, which can be used in a number of ways. Whatever you choose to do, the odds are high that you’ll receive more back than you would if you’d chosen a traditional savings account within a bank.
Figure out how hands-on you want to be with your investment. There are plenty of reputable companies out there who will take charge of your tenants, receiving rent, and property maintenance, but, they obviously come at a cost. Therefore, you’ll need to weigh up what you’ll receive at the end of each month, and what you’re prepared, or trained to do in regards to renting it out. Make sure you can do more than break even so that you have plenty of contingency should you need it. Choose to purchase in a location that’s on the rise with young professionals or the family market; these areas grow and develop fast, so getting a foot in the door early will allow you to make the most of decent rental prices, and you’ll have no trouble filling the property with reliable tenants.
There’s also always the option to start flipping houses or apartments. This takes excellent timing, budgeting, and skill; however, if you make the right moves with flipping property, the rewards can be great. You’ll need to have an impeccable eye for potential, great contacts within the building and decorating trade, and not get hung up on design or sentimentality over a property. Speed is also key to a successful renovation; knowing the market and choosing a great location, are the perfect place to start. Make sure you’ve done your research before you spend anything, and you could be on to a new and lucrative way of life. There are plenty of risks involved, so be prepared, and avoid rash decisions.
Overseas Real Estate
One thing’s for sure, people are always looking for a way to escape the rat race, and head elsewhere to unwind and switch-off, at least once a year. Therefore, looking into getting your slice of real estate in a desirable location, would be an excellent way to secure a steady income. Vacation rental prices are always much higher than those asked for long term accommodation, so the challenge lies in ensuring you’re fully booked-up, whatever the season. If you choose a great, popular destination, this shouldn’t be an issue, and you’ll get more return on your cash, than you would as a traditional landlord. Therefore, your chosen location needs to be a priority; look into the places that will have no trouble in attracting holidaymakers all, or most of the year round. You’ll need to earn more than enough during peak season so that any quiet times or low season, aren’t an issue financially.
There are again, options to have as much or as little involvement as you like. You could purchase the real estate to utilize yourself; you’ll have somewhere that will increase your money naturally, as the property prices rise, and somewhere you and your family can make the most of regularly. Or, you can use it every now and again, and rent it out to other vacationers for the rest of the year. You’ll need to take into consideration the overheads and any maintenance costs beforehand. Think about if you’d be able to travel over for regular inspections, or if you’d be better off using a company, or various businesses, local to your property. And, of course there is the option to invest, and utilize a company to take care of everything for you; from bookings, to property maintenance and upgrades, so you can truly sit back and watch your money grow.
You’ll need to weigh-up what the vacation property market is likely to cost you, against the money you’ll receive back. You’ll want more than enough to pay off any loan or mortgage you’ve used to purchase the home, and ideally, some extra profit to either re-invest, to save, or to simply enjoy. Unlike becoming a landlord in the traditional sense, you’ll be the subject or regular reviews, especially in today’s digital age. Therefore, you need to ensure that you’re able to build an excellent reputation from the get-go. So, it’s worth heading over to your new purchase, and experiencing it as a holidaymaker would so that you can make any amends and upgrades to both the place and what their experience will be. It doesn’t take many poor reviews to negatively impact a business, which is essentially what you’ll be; therefore, it’s crucial that you make excellent first impressions, and are ready for your guests to arrive.
Stocks And Shares
It can take people some time to get their head around investing in stocks and shares, and it’s definitely not one for those who want to invest and sit back to let their cash grow naturally or steadily. However, for those keen to keep a close eye on their cash, and excited to play the game in regards to buying and selling; it can be an exciting and lucrative option. It can suit many budgets; therefore, it’s worth putting a little cash into something first so that you can get to grips with the process, and what’s likely to happen. As you progress, you’ll need to understand everything from trading techniques, to the level of trust left in bitcoin; if these already sound like too much, stocks and shares might not be a savvy choice for you.
Remember that there’s no guarantee that you’ll make a great deal in shares, but those who make wise decisions in the market, can grow their cash steadily, and sell at the best time to release a lump sum to be used for whatever they wish. Again, there are resources and businesses out there, designed to do the hard work for you, in order to get the best return. So, it might be worth looking into them while you find your feet, and discovering if stocks and shares is the best choice for you.
