You may try to save some money all your life, and get wishful that you’ll get rich. Unsurprisingly though, because of the financial difficulties life offers on a daily basis, you’ll eventually find that doing this continuously is not getting you anywhere. There’s only one option to take if you really have the drive to save more money than usual—to invest effectively and wisely.
Smart investment saves you from financial pitfalls by allowing you to live the kind of lifestyle you have always dreamed of. You may think that you are making a smart investment, even if you aren’t. Make sure you strategize effectively throughout the process of planning your investment, especially now that many countries are suffering from a global financial crisis.
Jason Lange cites in an article in Reuters that in September 2012, business investment stalled as a fiscal cliff overshadowed the global economy. Investing wisely during these difficult times may pose some challenges. However, if you stick to your desire and goal to succeed, you’ll soon reap the benefits of your hard work without even realizing it.
Small investment is also worth it
Say, for example, you’ve saved an extra $20. Does this small amount of money make good investment? You bet, it is! Dividend Reinvestment Plans let you bypass brokers, and their commissions, by purchasing stocks directly from the companies or their agents. Investing in security now becomes easier than ever before as these plans collect low fees to make investing $20 at a time worth it. Dividend Reinvestment are ideal for small amount investments and frequent purchases in dollar-cost averaging. You can avail of Dividend’s automatic payment plan, without having the need to buy a complete share whenever you pay for your contribution.
Invest on home renovation
Use the $1000 you’ve saved to invest in real estate by replacing doors or having a bathroom makeover in your home. You never know when doing this will come in handy, since the expectation to increase the resale value of your home may come unexpectedly. Expect potential buyers to check every nook and cranny of your home, so be sure to incorporate creativity when making investment on home renovation.
Make good use of your talents
One of the popular investment trends that don’t cost expensive investment money is the establishment of a start-up virtual freelance business. If you have a talent and knack for writing, don’t hesitate to put up an online job order systemized website for freelance writers. Place confidence in your ability to act as the head writer for your online company. Generate income through writer’s work outputs and the virtual workforce management strategy that you employ.
Hire additional remote workers to maintain the upkeep of your job order website for you. Use the additional money that you’ve saved to pay for the salary of your additional workers. Don’t be afraid to make extra investment if it will cause your business to grow even further in the long run.
Avoid high interest rate loans
One of the tackiest ways to spend your money is by spending it by paying off your debt. For instance, if you have saved $1000, instead of spending the money partying every night, pay off a sizable portion of your home or car loan. Subsequently, you avoid accruing high interest rate loan payments in the long run.
Start a land-lording business
Because condominiums are soaring high investments, don’t be afraid to take the risk in investing in one. Initiate a land-lording business once you purchase a condo for property investment. You’ll enjoy the immense returns your investment makes whenever you collect your monthly rental income from your tenants.
If you’re lucky enough in having a renter who rents your place for a couple of years, the rate of your property investment return will likely surpass that of the rate you have initially predicted. If this happens, living like a king is not impossible, as your rental income alone will be sufficient to support your daily needs.
Prioritize your safety
Investing in home security systems, such as alarm systems, has now become affordable in recent years. The commonality of various technological advancements has reduced the price of home security systems. Prioritize your safety before anything else when making a decision to invest. Your safety and welfare are priceless, so you should make sure to make a wise investment in preserving them.
Watch your money grow in your bank
Make a wise investment in banks that offer good interest rate returns for time deposit accounts. Entrust your money to a reputable bank. Grow the rate of your money’s return in time deposit after sitting in the bank for a few years.
Invest in popular franchises
Ensure family safety investment by investing your business only with franchise companies with solid, industrial backgrounds. For instance, if you wish to invest in a retail store, investing in a franchise of Walmart makes a better bet than a low-profile antique store. You can feel more confident that your business has considerable opportunities to last by investing in solid franchises.
Make sure you’re insured
Don’t neglect your health. It’s expensive to get sick, especially when you’re on a tight budget. Invest in health coverage with a reputable insurance company. You just never know when your health coverage will come in handy. Get the most out of the amount you’ve invested when you enjoy the benefit returns that the coverage gives you.
Because you only get one life to live, guaranteeing your personal and family security is more than a great investment. When making a decision to make an investment, see to it that such investment, regardless of its nature, will assure the security of your whole family. A security blanket in the future to safeguard your family’s financial needs gives you a peace of mind that something can provide back-up support for you during emergencies. Subsequently, you are relieved from being dependent from others to give you the help you need when you need it. You’ll know you can be independent, even in times of emergencies, whenever you make great investments.
What other ways do you think you can invest your personal finance like businessman do? Let us know via comments
Jona Miranda Jone is a passionate writer. She writes about business, investment and other valuable issues. She runs the blog BreezyHub.com. Follow Jona on .