What comes to your mind when you hear about investing? A stockbroker in a suit smoking a cigar? I want you to know that you don’t need to be a millionaire and a Wolf of Wall Streets to become an investor. You only need a plan, the will, and some extra money that you can earn from playing Baccarat.
Figuring how to invest your extra money can be a challenge. Well, there’s a lot of information about investing around the web, but too much information can be confusing. They don’t answer one question, though. Where can I invest with my extra money? If you are a risk-taker, you can learn how to play Baccarat, earn money, and invest it. Here are places where you can invest your money.
- Try Your Luck with The Stock Market
The stock market is arguably one of the most beneficial places you can invest your extra money after that big win. When you buy stocks, you own a small portion of a company.
When the company profits, they pay you a portion of their earnings in the form of dividends, depending on the number of stocks you own.
When the value of the company grows tremendously from when it started, so does the value of your shares, and you can sell the shares at a profit.
- Invest in a Money-Making Course
Every time we hear about investing, we imagine it’s all about putting your money in a business and expect returns. No! Investing in yourself is the best decision you can ever make. Even though you may not pinpoint the actual ROI, money paid for education is money well spent.
Invest in your education. Learn, get skilled, grow, and discover your gifts and what you are passionate about.
There are a lot of courses on the internet to choose from. The only hard part is choosing the right course. You can find e-books for social media marketing on Amazon Kindle or coding and web development courses on Udemy. The possibilities are endless.
While many marketers might pop up on social media, encouraging you to take a particular course, be aware that not all of them are created alike. Do your due diligence and find out the right one for you. Also, consider if there’s a market for the skills you will attain from the course.
- Instead of Saving, Invest in Short-term Bonds
If you intend to pack your cash for more than three years, then saving is not a smart idea. Investing the money is. An investment will generate higher returns than savings, but it also comes with risks. You could lose some or all your money.
For instance, if a mutual fund invested in short-term bonds grows a little bit, and the interest rates rise, the value of the fund may decrease. That’s because when interest rates rise, bond prices fall. In fact, the longer the duration of that bond, the higher it’s exposed to rate fluctuations. That’s why you should invest in short-term bonds.
- Dip Your Toe in Real Estate
You no longer need good credit or a lot of money to invest in real estate. Welcome to “Real estate crowdfunding,” which allows you to own a fraction share of commercial properties without the need to be a landlord or be there.
However, the minimum required amount may start at $5,000. They are also riskier investments since you typically invest in one property, instead of a diversified portfolio of tens or hundreds of investments.
The advantage of this type of investment is that it allows you to own physical assets. You also share the costs and risks with other investors. It’s not your responsibility to maintain the property, and neither do you do the paperwork.
- Take a Shot with High-Yield Savings Accounts
Let’s say, you scored big on Baccarat, and you decide to send your earnings straight to your bank account. Your savings in the account may be earning you pennies. It’s time you moved your money from the account to a high-yield online savings account.
Online banking has fewer overhead costs. Remember, your bank has to pay its staff and rent, among other expenses. You can even find accounts paying over 1.5 percent.
A savings account is the best option for those who want to access their cash soon. Banks that offer those online accounts are FDIC-insured, meaning they are safe.
- Put Your Money in Mutual Funds
A mutual fund is a professionally-managed investment that pulls your money and that of other investors. The managers of the funds use the pooled money to purchase securities for the group.
It’s advisable to start with mutual funds rather than individual stocks or bonds until you learn your way around. Mutual funds allow you to invest in a broader portfolio of bonds and stocks in a single transaction, rather than trading all of them by yourself.
Not only are they safer investments, but they are also a less expensive way of investing. You can buy mutual funds through any brokerage account, but you’ll save money on trade commissioning if you decide to purchase funds directly via a fund company like You Invest or E*TRADE.
- Try Out the Treasury Securities
Many small investors don’t invest in the US Treasury securities, but you can. You may never get rich with these, but it’s a safer place to put your money and earn some little interest before you are ready to take a significant step into higher-risk investments.
Treasury securities, also known as savings bonds, can be bought easily via the US Treasury’s bond portal, Treasury Direct. You can also use Treasury Direct to buy Treasury Inflation-Protected Securities or TIPS.
TIPS pay interest and make periodic principal adjustments to your account for inflation based on the changes in the consumer price index.
- Certificates of Deposit
Certificates of Deposit (CDs) are issued by banks and credit unions. They offer quite a higher interest rate, especially if you have larger or longer deposits.
The catch, however, is that you will have to keep your money in the CD for a specified length of time, less you risk getting a penalty, such as losing three months’ interest.
With CD, the bank or credit union pays you interest at specified intervals. CDs are safe and have higher payouts, and that makes them the best choice for retirees who are only able to lock their money for a little bit.
If you make extra money from Baccarat and you decide to invest, nothing should hold you back. There are plenty of ways you can invest with your extra cash, regardless of the amount. Something to note is that the riskier the investment, the higher the returns, but when investing for your first time, go for a less risky investment. Remember, the most successful people took the risk and invested.
Disclaimer: This content does not necessarily represent the views of IWB.