Introduction
- Why do people save money?
- Moreover, where do I save money?
Usually, people like to save money from their usual income. Well, that is the most prominent way to do so if you have only one source of income.
Saving money is important for financial management. Not only it helps you plan for the future, but also allows access to finance for emergencies. However, the problem with traditional shaving is that with time the price value of your savings depreciates.
For instance, the $1000 you have saved today might not be worth the same $1000 due to inflation. Instead of saving money from the paycheck, the answer is very simple: start using the same money to invest in assets. The money kept in the bank will not give you a high return. In fact, the value will deplete every year.
In this article, we will discuss the type of asset you are investing in to gain high returns and the type of assets you should avoid to avoid facing any predicaments.
What Are The Investment Types You Should Be Looking Forward Too?
There are several assets that cater to different types of gains. Your tolerance level will decide which assets will suit you the best. Here are some assets that will perfectly go for the new investors.
1. Gold
Gold is a good investment avenue. There is an old saying, “invest in gold and forget about everything.” We all know that gold has a limited amount in nature. Hence, it will never be prone to inflation. In fact, the price will keep on growing with the demand in the market.
You can get the best return with a long term Gold investment. Gold is a safe-haven asset for traders and investors. It is not only used as a store value but also acts as a hedge against inflation.
2. Real Estate
The real estate business is yet another flourishing business in today’s industry. The population is rising every day, and so is their demand. This is why the last two years of the real estate business have seen exponential growth in the sales of both old and new houses.
You can use your residential property as an investment portfolio. Here is how you can use them:
- Buying & Selling.
- Rental.
- Flipping.
3. Cryptocurrencies
Cryptocurrencies are the new concept of decentralized digital currencies. They are very young in the industry. Within this short period, they have almost engulfed the digital trade market. Today, Cryptocurrencies are considered to be the best digital assets.
In fact, the record shows that after the introduction in the market, Bitcoin has shown a million fold price evaluation. If you are willing to wager on new technology and a potential asset, the official site is the right place for your first step.
Types Of Investment You Should Avoid?
Though the assets are there for investing, there are some assets which we would like you to avoid investing in. These assets might seem a viable option for you. But they will not produce satisfactory returns.
1. Stocks
Stocks are the shares of the companies. Buying stocks means you are buying shares of the respective company. It might seem that buying stocks of a reputable company will yield a high profit. Well, that’s true, but the highlighted part is just how much profit will you make? History has shown us that the stock market has hardly produced more gains compared to non-traditional assets.
2. Mutual Funds
Mutual funds are nothing more than offering loans to the companies and the government. And then getting paid back with some interest added to the principle. These methods will give you assured profit. But the profit is similar to banking interest. If you want to gain the same profit, what’s the point in investing and taking market risks?
The Bottom Line
The traditional assets have remained assets in the name only, and the gains are pretty much similar to that for banking interest. This is the reason why investors are shifting their portfolios to more non-traditional assets. Was this article helpful? If so, we are glad that we were helpful. Should you need assistance with the investment, feel free to get in touch with us.