Those that have attained great wealth have not done so because they put their money into things that depreciate in value like that of new cars or designer clothes. Investing in different areas that produce consistent returns can yield quite a bit of money over time. Allowing large amounts of money to sit in savings accounts is unwise as this money will be earning very little in terms of return. Putting that money into a mutual fund that provides a reasonable return is a far better option but many people do not understand there are safer stocks or options to invest than they might think. The following are ways to start growing your wealth through various investment options. Keep in mind that it is wise to diversify your investment portfolio so each of these options could be a part of your future financial portfolio.
For people that understand the Wilshire 5000 Index as well as the S&P as well as other portions of the stock market then this is the area to put your money in. Understanding which companies are creating incredible solutions for problems or have seemed to succeed at every turn can be immensely profitable. Those that invested a decade ago in Amazon are now sitting on a far larger amount of money. Finding a company that you believe in or that is in the niche you work in that is publicly traded can turn into a huge financial gain. Take a look at the stock market but keep in mind as you get older you need to move your investments to less volatile stocks with far less risk.
Real Estate Flipping
Flipping can be a great way to earn fast money but there are a large number of risks involved. There could be underlying issues with the home that are found during the flip as many of these properties are purchased “as is” without a thorough inspection. Combine this with people inexperienced with contractors and this can turn into a money pit quickly. For those people that do the renovations themselves or have worked in this industry have a great shot of being able to be successful at this venture.
An investment property is not going to pay off quickly like that of a house flip but it is far safer. Renting out a space long term can be truly passive income with only certain maintenance costs being incurred. A property management company is a wise decision as they can help find renters as well as deal with issues like late payment or complaints from neighbors. Getting an ironclad lease written up is important as well as the last thing you want is to lose money on your investment property.
Being able to have enough money where you are pitched ideas as a venture capitalist is a great place to grow a fortune. At times all a great company needs is some capital to grow immensely and as a VC you can make this happen. At times this takes no work at all on the part of the VC is the business model is scalable and the company is being running efficiently.
Your wealth depends on how you invest your money as you want to build long term wealth for your family. Take the time to see how you should be investing your money or visit a financial advisor if you want a professional’s opinion