Another month has passed and just like the month before, you managed to set 20% of your paycheck aside for your emergency fund. Now it’s been two years and your emergency fund is actually starting to be big enough. The next money you put aside – should you use it for travelling, should you buy something nice (although, maybe useless) for yourself, should you give it to charity? All of them are good options, but there’s also (at least) one other option. Now that you have your emergency fund built, and you really should keep that money safe, you could start thinking of using all the future “spare money” to try to earn with it. To make it grow. And there are several ways of doing that.
Obviously, you could consider playing Powerball online and although the odds are low, the size of your potential winnings is unimaginable. But that’s not really growing your money, that’s hoping for the best. For actually growing your money there are a few different options.
Investing in stocks
It doesn’t necessarily need to be stocks, it could also be forex or cryptocurrencies as well. But investing in stocks is usually a lot better option, because there are some important differences between stocks a cryptocurrency market. Investing is long-term, and you should choose stocks with huge potential. Even if you see actual results only in 10 years time. At this point one good bet would be anything related to Elon Musk. But that’s just my personal take.
While we’ve all heard of and been part of the booms and crashes, by the end of the day real estate market is the best market to invest in. The safest one. Long-term real estate prices are growing. Obviously you still need to do your research about where to buy and for what prices, but in general even today it’s the most fool-proof option. The negative side is that investing in real estate usually assumes a huge investment, at least compared to stocks or cryptos.
There are a number for crowdfunding lending sites out there which according to a number of friends of mine can actually give you a return of anywhere between 5 and 20% a year. Which is a pretty decent ROI already. Of course, should you join any such platform – again, firstly do your due diligence and make sure the platform is legit. And never lend all of your money to one person but rather split it between 50-200 different people. So that even if some loans will go bad, and they will, you’ll still be making money, not losing it.