Don’t Like To Invest In Stock Market? Try These Alternatives.
When it comes to piling your money, we often hear that the best thing to do is to invest your money in a stock market. Investing in stocks will give you the highest return rate for your money in just a few years. After all, you’re investing in incredible companies like Dell or Facebook, so you can assume that you’ll gain returns on your money. However, just as stocks can give you the high return rate, it can also be the cause of your downfall if not managed properly.
For one, investing in stock market is very risky, since your return rate will solely depend on the performance of the market. A stock can depreciate up to 40% of your investment, causing you to lose a significant portion of your hard-earned money. That’s why, if you’re not knowledgeable with stocks, it is better to stay out.
But then how else can we make our money grow? For those who are seeking financial growth outside the stock market, here are the alternatives you can explore.
This is one of the most common and popular investments you can enter if you don’t want to invest in stock markets. Peer to peer lending eliminates the need for a middleman (e.g. banker), that enables you to maximize your profit since you’ll be receiving your interest in full rate. Furthermore, not only it helps you as a borrower to grow your money, but you’re also helping the recipient of using your money for their own purpose. Another thing that is great with peer to peer lending is diversification. Let’s say you invest $10,000 in a lending club, your money will be spread out to hundreds of individual loans. So if one or two of your loans turn sour, your portfolio won’t get affected.
You might find your mom or your auntie wearing that expensive jewelry with dazzling metals as a pendant. You often cringed how they were able to spend thousands of dollars just to wear those precious diamonds, gold, and other gems. However, what you don’t know is that aside from their hobby and for fashion, your mom is also buying this jewelry as an investment. Gold and other gems have controversial assets in the market. Oftentimes, the older the gold is, the higher its market value, that’s why you won’t go wrong with investing in gold. Furthermore, its value is closely related to dollars, so it’s guaranteed that you’ll gain a return out of it. Aside from that, in case of financial collapse or constraints, you can always use these metals to barter for money. Investing in metals can also become your emergency funds.
Just like gold and other metals, it’s also a great idea to invest in real estate too. The basic right of a human being is to have access to comfortable housing. That’s why every one of us is bound to acquire real estate in our life. What’s more, the value of the house and the lot increases as the years go by. Why? It’s because the lots available to build houses depreciate every year, that’s why the demand for available housing or real estate increases too. This makes your property value to the market. Or, if you don’t want to give up your ownership, you can always use your property for rentals, either for household purposes and turn it into a business such as warehousing. This way, you’ll be opening up an extra income for you to receive every month or year. This will also give you a guaranteed return on your investment.
U.S. Treasury Securities
Although the return rate of U.S treasury is relatively lower than the other investments, the return is guaranteed since you’ll be buying government bonds. Furthermore, the US is the highest debt collector in the world. We must be frank in telling you that you won’t get rich easily with investing in treasury bonds. But if you want the safest option to get a guaranteed return of your money and is conservative when it comes to investing (not taking risk of losing your money) then US Treasury Bonds is a great option for you.
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