As of May 2022, 58% of Americans invested their money in stocks and similar portfolios. Statista reports a 3% increase from the 55% recorded only two years ago. Indeed, more than half of the population has demonstrated an understanding of personal financing. However, stocks are not the only way to invest your money. Apart from stocks, real estate is another example, and there are many other ways to put your money to tremendous use. Before settling on an investment to commit your money to, it's important to research the pros and cons.
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1. Peer To Peer Lending:
Financial institutions have been known to grant loans and other facilities to individuals, groups and businesses for many years. With time, however, a new trend has emerged: peer to peer lending (P2P). This system is originally credited to the United Kingdom because it commenced there in 2005. In no time, it spread worldwide, and the US jumped onto the bandwagon. Peer to peer lending is a bond theme variation. It involves giving out loans to people and businesses with high interest.
Financiers join a digital central money lending platform. These investors or creditors give out loans to persons who apply for one with the agreement to pay back within a shorter period and at high interest. While there is some debate about this system, its financial benefits cannot be disputed. Therefore, if you have enough personal funds, it may be a good idea to go into P2P lending. You make your money back plus the agreed upon interest.
2. The Commodities Market:
Although the current perception is the volatility of the commodities market, you cannot overlook the huge benefits. Some people may not want to buy actual raw materials like gold or other precious minerals. In that case, such individuals can turn their attention to buying shares from commodity producing companies. It can be a long wait, but you can be assured that the money will be well invested rather than just sitting around in your savings account. It is well worth the effort if you decide to try the commodities market.
3. Crowdfunding Targeted Businesses:
It's worth noting that crowdfunding is legal and regulated in the United States. However, this system is run online through the Securities and Exchange Commission. Crowdfunding is an equity based system that gives participants shares in a business. In simpler terms, a group of people come together to pool resources towards a common goal. The underlying factor for great success is to land a project or business that makes high profits. In this case, you as a participant also get a share of the profits.
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4. Real Estate:
Real estate can be an excellent alternative way to invest your money. You don't need to be an expert in this area, all it takes is relevant information regarding the real estate sector. Do you want to go solely into rentals, house sales or flipping? There are several ways to invest your money in real estate, but it is advisable to seek expert advice before proceeding.
Usually, first timers are advised to invest in single family homes and to learn all there is to know before moving into more complex areas of real estate. This is because single family homes always offer a safety net in the sector. Subsequently, you can move on to more complex areas of the real estate industry.