10 Best Investment Options

Make Money Work For You

Nowadays, the awareness to invest money has drastically increased. But the problem is that people don’t know the best options to invest, so I give you some options to invest your money that I think is great for your investment portfolio.

Before getting into the options, let’s talk about the 50/30/20 rule where you spend 50% of your earnings for your daily needs, use 30% for your entertainment and luxury, and the remaining 20% you invest. But 20% does not sound very big right, so let’s reduce our spendings to 40% and entertainment to 25% by which you will have 35% to invest.

It’s easy to say but hard to bring it to 35%. So take some time to plan your expenses and try to bring the investment capital to 35%. Good luck. With that being said, I have another piece of advice for you.

Before starting to invest, save money enough to sustain for 6 months even if you don’t earn, this will help you in situations like the Covid-19 lockdowns. So once you finished saving, start your investment journey. Remember that the money you saved for the 6 months should be in your savings account and shouldn’t be touched unless you start starving without money or in a medical emergency.

Now let me tell you the the options to Invest

(These are unordered, and not aligned based on any criteria)

1. Stock Market

Yes obviously, this is the first option that come to everybody’s mind and I’m not an exception, but it’s a bit too risky. You must research well before investing into any of the stock. You get awesome returns if you invest wisely. Don’t sell it for at least 15 years once you’ve brought it until or unless the stock starts to crash or you’re a trader.

The companies pay you dividends once in a while as a reward for owning their stocks and this does not come under return percentage. Sounds great right! Yeah, so you can invest the dividends back into the stocks too.

Now in the modern world, buying and selling stocks has become very simple, you can do it seconds, so why don’t you give it a shot.

2. Gold

Gold is a low risk investment. For the past 25 years gold has given at least 10% return every year. The best part about gold is that, it is a luxury but not a liability. So the money you invest should not necessarily be from the 35% you saved, but it could be from the 25% you kept aside for luxury and entertainment. So it’s a jackpot.

3. Cryptocurrency

Now cryptocurrency is rapidly becoming popular, so it’s the best time to start investing in crypto, again it’s a high risk investment. So choose the coins wisely after doing through research. It can give you 1000% returns and also can crash so be careful.

4. Real Estate

The population is growing and so is the demand for land, so the value of land is constantly increasing. It is also as good as gold, it’s low risk. And apart from the value appreciating, you can make money out of it through leasing, renting or even using it as a solar form etc... There are plenty of ways you can make money from land and these are just a few.

5. Mutual funds/Index funds

If you don’t know much about stocks, then this is the best option for you. Basically, the money you invest will be put into a large number of companies. Some companies might fail but most of the time the majority will succeed. You will get about 8 to 12% returns. This is a medium-risk investment. So be clear with the terms and conditions before investing. It is a Kickstarter for beginners but unlike stocks, they don’t earn you dividends.

6. Fixed Deposit

This is a low-risk investment option. But the returns are also very low. I don’t suggest these options but just letting you know. This is great for senior citizens who wish to live a peaceful retired life.

7. Government Schemes

This is also a very low-risk option. There are plenty of government schemes to choose from. It varies from place to place, so please make the research yourself. It is not very great too because it gives fewer returns but senior citizens will find these schemes useful

8. Businesses

You can become an angel investor, it does not have to be a very big investment. Instead, you can invest in your friends’ or relatives’ companies. By this, you could have better relationships and also good returns if the business succeeds. The business may or may not give profits, so I suggest you invest less money into it.

9. Side Hustles

All the investments you do above will give you returns while others work for it. But if you invest to create a passive income stream or even a part-time business, you work in it and all the money generated will be yours. So this investment will make you grow very sooner. It will boost the amount that you invest in the above-mentioned options.

Quick Tip: Before you quit your job to make your business full time, design it to be a passive income stream.

10. Invest In Yourself

This is by far the best investment option. As you are aware, the more skills you have, the more money you earn for investing your time. Here you invest money and time, so it’s the most valuable investment.

It does not have to be books and courses, it could be a comfy mattress or even an elegant and positive workspace. It makes a big difference.

So, now that, you know the investment options, so start investing after you save for the above-mentioned 6 months. When you invest, please don’t invest in just one option. Diversify you investment portfolio, make it look cool while making money.

Good Luck With You Investment Journey.