Best Ways to Invest Your Money in 2019: How Anyone Can Be Rich
Struggling to earn your first $1,000,000? Wondering just what you can do to help make yourself more successful? There are plenty of things that you can do to make a significant difference in your life and your finances.
Create the right habits to support success.
Create the right mindset to support abundance.
Stop wasting time on frivolous things.
However, perhaps the most important thing to do right now is to invest your money. Not sure what the best ways are to invest your money in 2019? We’ll take a look at some of your options in this post.
Put Your Money in the Stock Market
The stock market might be incredibly volatile right now, with 2019 expected to bring more of the same, but that volatility is a good thing for those with some risk tolerance. The bigger the risk, the larger the potential reward. The greater the fluctuations in the stock market, the greater your potential earnings.
Yes, the advice to invest in the stock market is old. It’s trite. It’s almost clichéd. However, none of that eliminates its value. Don’t let fear prevent you from building the wealth that you want and deserve. There are ways that you can hedge your bets and reduce at least some of the risk involved with putting your money into stocks. Here are a few things to know:
Educate Yourself – First and foremost, you need to educate yourself. It’s vital that you understand more than the rudiments of how the stock market works, and how to choose the right stocks to invest in. In the past, this usually meant paying high fees to advisors or trusting your money to a stockbroker who would make investments on your behalf. Today, that’s changed. You can find outstanding educational materials online, as well as through many investment-focused apps that will give you the knowledge necessary to invest wisely.
Be Conservative – Getting into the stock market can be exciting. It’s tempting to adopt an all or nothing approach here, but that can be folly unless you can afford to shrug off the loss of your entire investment. Instead, go in with a conservative mindset. Be cautious. Study company performance and market sentiment and then make investments.
Consider ETFs – Exchange-traded funds, or ETFs, are different from traditional stocks. They can be purchased for far less money, and they give you the ability to diversify your stock portfolio in different areas (commodities, technology, manufacturing, etc.). You can also choose the ETFs you invest in based on your risk tolerance, budget, and other personal factors (at least with the right platform/app).
Choose the Right Platform – You cannot simply call up a Wall Street trader and tell him, “Bob, I want to invest $10,000 in Company XYZ right now!”. You need a middleman. In the past, this was your stockbroker or advisor. Today, it can be a smartphone app. There are dozens of different apps out there, such as TD Ameritrade and Scottrade that allow you to invest, but they’re not all created equal. Do your due diligence here and then choose the app that best fits your investment strategy, risk tolerance, and wealth-building goals. Personally, in my free time I use the platform IQ Option to execute trades. It's a very simple platform to use and if you know what you're doing you can generate a nice little side income.
Put Your Money into Real Estate
With the last lingering effects of the Great Recession finally falling behind us, the real estate market has improved to the point that it should be considered by anyone hoping to build their wealth in 2019. How might you get into real estate? Actually, there are several different ways and they are all different.
Fix and Flip – One of the more common ways to get into real estate and make a decent return on your investment is by fixing and flipping homes. You don’t even have to do the hard work of renovating yourself. Instead, you can work with a partner who does the work while you provide the financial backing. Of course, this isn’t the right method for everyone.
Investment Properties – If you have significant capital or a second home that you’re not using, you can get into the investment property act. There’s a lot to be gained by owning rental homes. And, if you don’t want to deal with all the nitty-gritty of being a landlord, you can hire a property management company to do that for you. Of course, the company’s fees will come off the top of your investment.
Crowdfunded Real Estate – Want to enjoy the benefits of rental property without having to be a landlord? Get into crowdfunded real estate. With the help of innovative apps and other platforms, you can purchase a share of commercial real estate or a multi-family property. You’ll earn returns on the money you invest, but you won’t have to deal with things like maintenance, or finding tenants when the old ones move out.
Automate Your Investing
Want to build wealth without having to do all the research it usually entails? Interested in expert help, but don’t want to pay the fees associated with a financial advisor? That’s possible with modern technology. You can let a roboadvisor take care of your investments for you.
With some of the roboadvisors available today, you don’t have to worry about paying any sort of maintenance fees or other charges. You’ll have some fees on your balance or your investment success, as the company needs to make a profit, but most are far cheaper than working with a human advisor. And, because AI has become so much smarter, you’ll find that your investments perform better over time.
Note that most roboadvisor platforms do have a minimum investment, but some are as low as $100. Others might have a minimum of $1,000, though. Do a bit of research and compare your options before choosing a platform.
This one might sound like common sense or a no-brainer, but you would be surprised at how many people want to build their wealth but fail to pay themselves first. Remember that real wealth is not your income – it’s your financial stability over time. Invest in yourself by putting money away into retirement accounts. Which ones?
If your employer offers a 401(k) plan, that’s the place to start. Put as much money into the account as you can without putting your family in a financial bind. Make sure that you’re maximizing your employer’s matching contribution plan, too. That’s free money that you could be leaving on the table.
Your 401(k) program is just one of the options available to you. Open an IRA. Consider a Roth IRA. Open up a health savings account. All of these allow you to hedge your wealth against inflation and devaluation, offset the potential losses of other investments, and still allow you to benefit from compounding over time.
New to Investing? Think about Mutual Funds
You probably know about stocks and bonds, as well as retirement accounts. But, do you know the value of mutual funds? If you’re just getting started with investing, mutual funds can be great tools to help you build wealth without things getting too complicated. With a single transaction, you’re able to put your money into multiple stocks and bonds. You get diversification without having to make individual investments.
However, be prepared for higher than average minimum investment requirements – think between $500 and $5,000. This is a bit more than some other investment options and considerably more than what you’ll find with some smartphone investment apps.
As a final note, you might want to consider setting up automatic investing with your mutual fund of choice. This is not available with all accounts, but T. Rowe Price and Dreyfus, among others, usually offer this feature.
Invest in Yourself
As I touched on at the beginning of this post, investing in yourself is one of the best ways to ensure that you’re able to build the wealth that you deserve. Now is a great time to do that. By investing in yourself, you can achieve several goals at once, including self-improvement, boosting self-esteem, and improving your earning capability.
How do you invest in yourself? It could be something as simple as reading self-help books. It might be taking night classes. It could be enrolling in a degree program. Really, the sky is the limit here. Investing in yourself is one of the best decisions you can make. After all, with more education, training, and knowledge, you can always earn more money. If you're looking to read a book that'll actually make a positive change in your financial life, I'd recommend you checking out my book 'The 5 Secrets to Financial Freedom'.
In the end, there are many ways that you can invest your money going into 2019. From self-improvement to mutual funds to putting your money in the stock market, each method we’ve covered has something to offer. I would also like to add a bonus tip – you can take the advice from this post and invest in yourself by signing up for my 'Six Figure Sunday' course (click here to sign up). In it, I teach you how to earn a six figure income while working just one day per week. It’s never been simpler to maximize your earning capability while ensuring you can live the lifestyle you want.