Everyone loves money. Making it, seeing it, holding it, everything. But what people might just like more than this is receiving money without really doing anything. And the main and most popular way for this to occur is by investing your money. While there are tons of different ways to do this, these four are among the most “tried and true” and popular methods to invest your money.
1. Real Estate
While this may not be a feasible investment for a lot of people as it often requires a lot of start-up money to buy the property, this can be one of the best options when it comes to getting a return. If you have the funds, buying a property (apartment, home, anything) and renting the rooms individually or as homes has proven to be a great to make money. It can be income that comes in without you doing much work at all, and if you can find good, reliable tenants you are in for some easy money in return for the foreseeable future.
2. Tax Sheltered Accounts
There are so many accounts out there to keep savings, investment funds and more. But if you want to be the smartest investor you can be, you should be investing in tax sheltered accounts. These are accounts which decreases an investors taxable income and in turn, their tax liability. These accounts are the 401k and IRA’s in the USA and RRSPs and TFSAs in Canada.
3. Certificates of Deposit
These are ones that aren’t talked about as much but can some of the best options out there. While they often don’t end up with huge returns on investment, they are guaranteed, which make them extremely low risk. CD’s, as they’re often called, are basically a savings certificate which entitles the owner of the certificate to receive interest. These certificates have a fixed interest rate, can be made in any denomination, and also bear a maturity date, when the owner gets their interest. For example, let’s say that you purchase a $10,000 CD with an interest rate of 5% and a term of one year. At the year end, the CD will have grown to $10,500, so you basically made $500 for doing absolutely nothing.
Perhaps one of the best ways you can invest your money is by investing that in yourself and bettering yourself as a person. This can mean a large number of different things. For example, investing your money in your education (whether that be a full degree or just some courses and certificates), can go a long way in helping you out in various other parts of your life.