Business owners and entrepreneurs are unique positions for an investor’s point of view because they don’t have the security of a large salary from a big company from which they can slowly build up an extensive portfolio of investments over their career. Thus, business owners and entrepreneurs must be even more diligent when choosing investments.
Here are a few thoughts on investment and the five best ways to invest money from your business;
What Is Your Current Financial Status?
Having gained some profits in your business, you are eager to put your money to work, start earning interest and start getting ahead. Yet, you can’t get too far ahead if your feet are stuck in the mud.
That means that if you have any debt, try to compare the interest rate of your liability against the interest rate that you would gain from investments. It would make sense to pay off debts that exceed the interest rates that you could gain from investments because failing to do so would cause you to not get a return that is likely to exceed the amount you are paying in debt.
If you are debt-free and is looking for some ways to invest your hard-earned money to grow, below are the five best ways to consider:
1. Stock Market.
In the long run, the stock exchange is among the safest investment opportunities for your money. You can start investing with as little as $1,000, especially that online platforms for stock market investors had developed means on how to provide ease and efficiency to their investors.
Robo-advisors, to mention one, can automatically determine the investment plan that is suited for you. It works by first deciding on your financial goals, your timeline, and how long you are going to invest the money. On the basis of those pieces of information, the Robo-advisor will choose the right investment using only AI technology and without human intervention.
When it comes to cryptocurrencies, there are still a lot of figuring out on what would be left the instant the dust settles. Even with all the different frauds that have been going on with the crypto world, the Ponzi Scheme and all these trade delays in various countries, cryptocurrencies still can’t be generally considered as bad investments.
If you are a business owner and are looking for ways to invest your money, you can allocate a small % to buy a cryptocurrency and see where you can go from that. Before you get yourself wet with cryptocurrencies, however, you should first educate yourself with crypto trading, for that’s where the earnings will come in.
3. Peer to Peer Lending.
Peer to Peer Lending is an excellent alternative for banks if you want to get a loan. These peer to peer lending companies can help you grant you microloans to individuals which usually ranges anywhere from $25 to $100.
How do you make money as an investor, then? As an investor, you would start to earn when you create an account on one of these Peer to Peer Lending companies, fund your account, and choose different notes that would pay you interests.
However, do not think of peer to peer lending as secure bonds because there are also risks to consider, such as if the peer to peer lending company goes default. In that case, you probably won’t get your money back.
4. Real Estate.
There are ways to invest in real estate by not necessarily having to purchase real property. The safest way is to do so is through buying ETFs or mutual funds that invest in real estate. There are companies you can look up online that give you a clear picture of the real estate index. With that, you will immediately see some gains, not unlike if you handle your properties yourself.
Another investment option for real estate is buying REITs (Real Estate Investment Trusts). These trusts can be purchased in the open market and more like mutual funds, and the ETFs, REITs would earn you somewhere between 6 to 8% interest range. There are plenty of REITs that will offer higher, but take into account that when you get a higher rate of return, you are also likely to take more risks.
5. Coaching Programs.
If you are at the point of your business where you needed to be educated about something; then, you should consider joining coaching programs. You can plan to hire a celebrated coach or attend a paid strategist community that could help you to thrive in whichever area or niche you wanted.
Taking a step back, you would realize that almost all successful people in business, entrepreneurs, financial advisors, and the like, had a coach in one way or another.
This article lists the best ways to invest money from your business. Remember that wherever you are at life, there are a ton of options in making your money grow. Do your research, and not only invest in fear of being left by the train.