You’ve been working hard on your small business and have finally started to turn a pretty decent profit. Now you start asking yourself what you’re going to do with all this extra money. You could go for a crazy weekend in Vegas, or buy that car you’ve had your eye on. Maybe you’ll be sensible for once and use the money to expand your current business. But the truly sensible idea is to invest. The best time to invest is when you’re young; it gives your investment more time to grow. Below are the three simplest way to invest your money now, so that you can earn big money later down the line.
Stocks
The ‘go to’ option whenever anyone thinks of investing money. You get images of Wolf of Wall Street type people, and you driving along the French Riviera in the new Ferrari you bought with all the money your earned investing in the next big thing. However, making money from stocks isn’t reserved for millionaire playboys and retired CEOs. All you have to do is balance the risk and the reward. If you plan to invest for a long period of time, you can take the low-risk stocks with low reward, because that small reward will build over time to become something much more sizeable. There are even ‘robo-advisors’ now, which are automated programs that use simple equations to calculate where you should invest your money for maximum growth. There is a huge selection of companies to choose from, but betterment fees are reasonable and allow much customization. If you wanted to play things safe, you could always invest in penny stocks. You can invest a small sum in many different companies to lessen the risk of loss. The shares may not go up by much in value, but even a penny up on the share price is doubling your investment.
Collectables
This one will need a little research and forethought, but you have the potential to be sitting on some serious money in a few years time. Even the most expensive collectables were, at one time, worth hardly anything. Values usually plummet and then start to build back up over time. The trick is to buy in as the market turns. If you have a decent amount set aside, buying a future classic car (particularly ones that rarely escape modification) and keeping it in pristine condition could be a sound investment. You could think smaller too. Toys, coins, paintings. Many things have the potential to be worth a lot of money to someone looking for the missing piece in their collection.
Pension
By far the most sensible investment is to set up a pension fund. You may have an employer that has a great 401k set up for you already, or you may want to set up a private one for yourself. Either way, paying into it as much as possible, as often as possible, is the best way to ensure that your later years are spent in comfort.
There are many other options to invest for your future, but these options should give you a good start to begin planning how to make your money work for you.
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