6 Ways to Invest Today (2020 Edition)

When a person invests they are usually putting in time, energy, or money into an object or concept that will create some form of reward in the future. As a person invests there are a few things that a person needs to consider before entering an investment. Why do you want to invest? What do you want to invest in? How long are you going to invest? What is your tolerance for losing money? Below are a variety of ways to invest to create opportunities of rewards in the future.

Robo-Advisor

A Robo-Advisor is a way for individuals to invest with low costs. They use computer algorithms based on your financial goals and risk tolerance to invest and manage your money. The low costs can ultimately help you get more out of your investment return.

Savings/Money Markets accounts

These types of accounts allow an individual to earn interest on the money that they keep in the accounts. The main differences between the two accounts are the interest rates, fees for the accounts, and access to the money invested. Although the interest earned from the money invested is small, this option will not cause you to lose money. This can prove beneficial if you need money in the short term.

Brokerage account/IRA 

A brokerage account allows people to invest in stocks, bonds, mutual funds, and other investments through a licensed brokerage firm. It is important to have knowledge regarding investments like stocks/bonds and understand the brokerage’s fee structure before opening an account. An Individual Retirement Account (IRA) is another account where you can invest like a brokerage account but the IRA has tax advantages (meaning you would pay less taxes compared to a regular investment account) in effort to financially plan for retirement.

CryptoCurrency (Bitcoin)

This type of investment deals with a digital currency that has become a rising popular alternative to current currency options such as the U.S. dollar. Bitcoin is the most popular digital currency and essentially makes that case as an improved method of currency for the world. If you think the current currency structure is not efficient and this type of currency will become more popular in the future, you may want to look more into Bitcoin. This is a very risky investment but can become very beneficial if Bitcoin becomes widely adopted.

Real Estate

Real estate is another way for people to invest and help people accumulate wealth. The most common real estate that most people think about is residential but there are other real estate options like industrial (manufacturing buildings, warehouses, etc), commercial (strip malls, hotels, etc), and Real Estate Investment Trusts (REIT). REITs are companies that invest in real estate for you through the company’s stock, mutual fund, or exchange traded fund (ETF).

Yourself

The best investment you can ever make will always be in yourself. You can invest in yourself in a variety of ways like working out, reading books, and putting effort and money into a business or side hustle. Ultimately, the foundation of your success will start and end with you, so it is wise to use your time, energy, and money towards yourself first!

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Disclaimer: Thegrownwave.com is a personal finance blog, not a professional investment advisor. The content produced from the blog is provided for free and only for informational purposes. Thegrownwave.com does not and cannot promise the accuracy and reliability of any content in comparison to your individual circumstances.