When you look out to invest, there are many options that you could watch out for. Though there are many ways to make money, the choice of things to invest in to make money is very crucial. The world of investment is complex. The ways to make money often include a balanced mix of different things, but you need a keen eye on the extent of return as well as the overall risk exposure that you are comfortable with. While there are many things or rather instruments of investment that people would advise you about, the choice needs to be yours.
Remember the ways to make money is always relative. There is no guarantee that something that might have worked for someone would also work as effectively for you. Perhaps the biggest parameter in this context is what your ultimate aim is and how you want to deploy the money that you want to invest. The time period, the relative return and risk exposure all change as per that one primary pre-condition. Also keep in mind that it is not always the matter of making money. Sometimes your life will become a lot better if you stop wasting money.
Therefore, there are three important things that guide your toward financial freedom:
- Having a reliable and strong source of income that makes a lot of money.
- Having reliable and strong ways to invest money to make more money.
- Limiting the expenses and keeping more money.
So, while you think about making money, you have to think about limiting the expenses and keeping more money. This is something that makes you rich. If you also learn how to invest some money to increase your wealth, then you will become super rich: The Easiest Way to Get Rich Fast
16 Different Things to Invest in to Make Some Money
We decided to make the task a little simpler for you. Here is a quick lowdown of the top 16 things to invest in to make money:
- Pay off Your Debt
- Lending Club
- Trade in Stocks Online
- Buy Dividend Paying Stocks
- Invest in Gold
- Robo Advisors to Manage Your Investment
- Invest in College Education of Your Child
- Cash Back Rewards
- Analyze Your Retirement Plan with Care
- Treasury Securities
- Mutual Funds with Low Charges
- Bank Deposits
- Real Estate
- Rent out Real Estate
- Capital Gains Income
- Certificate of Deposits
1. Pay off Your Debt
You could be surprised that in the list of different things to make money, I am suggesting you to pay off your debt. There are two primary reasons for it. First of all, if you have a big debt, savings small sums of money would yield no results for you. You perhaps spend more in paying interest than the actual amount that you might be investing. The second reason that I feel that paying off debt helps is that it enables preservation of capital a lot better. By this, I mean, it helps you lock in a basic rate of return every month. If you calculate the amount that you pay as interest every month for your credit card debt especially, paying it off makes sure you are able to save that much of additional capital outgo every month.
Therefore, it becomes one of the primary ways to make money and expand the scope of your investment quite comprehensively.
2. Run a Lending Club
In the list of the many things to invest in to make money, you could also consider the Lending Club. Probably a rather unconventional option to make money, it sure makes strong returns, if you are an investor. Before I go on to explain how these types of things can help you yield money, it is important to understand the basic business model. Well, this is an online lending platform, where you have lenders who borrow money and investors or lenders who lend out their money. Their incentive is they get a handsome return in exchange for the money that they put in. They connect the prospective lenders and investors and create a win-win option for everybody involved in the entire transaction.
Investors make money every month in the form of loan repayment plans and interest on the loan amount. The rate of interest is decided on the basis of credit history. Moreover, as people or borrowers who are associated with the site undergo complete screening, they are less likely to default. As a result, the possibility of potential loss is also contained. The range of offered loan amount is also pretty wide from just a couple of hundred dollars to more than $10,000.
3. Trade in Stocks Online
You might not be a Warren Buffet, but you surely can make money a lot faster in stocks as compared to a lot of other investment alternatives. This is because the rate of return is much faster in the case of the stock market. So in your search for things to invest in to make money, stock market trading surely needs to figure prominently. You can enhance the amount of money that you are making by going independently and trading through tools like Scottrade or eTrade. You can also try a host of other discount brokers to cut down on the charges and expenses incurred.
Sometimes calculations would indicate that the outgo for these types of charges is comparatively higher compared to the actual money that you make. Trading on your own is among the most profitable ways to make money because here your trading calls are never dictated by the broker’s interest. You are your own boss. You go through the market, analyze the various stocks and then take a call depending on your objectives. One of the things that are unique about this way to make money is that while you might have some losses initially, over the long-term you are going to be a clear winner.
4. Buy Dividend Paying Stocks
One of the easiest ways to make money in the stock market would be a smart investment in the time sent to decide the stocks. On an average, there are several good value stocks that pay rich dividends. While on a day to day basis, these stocks might not get you huge returns, but they offer a steady source of income. These dividend paying stocks will get you a set amount of income every year depending on the number of stocks that you have invested in and the kind of dividend plan that they might have decided upon. Even at times when the market is down, and the stock value plummets, these dividends can help you make money at a steady pace.
These are not dependent on market forces, and invariably companies that offer these dividends are cash rich; hence, they are not impacted by the day to day stock movement. In the list of things to invest in to make money, this is one of those sure-fire ways. You can also narrow down your research appropriately to create the list of stocks that have the potential to deliver maximum value.
5. Invest in Gold
Gold is not just the international indicator of value over the longer-term; it is one of the safest ways to make money. It provides a hedge against the market volatility, helps you tide over trading trauma a lot more effectively and enables steady returns over the long-term. The multitude of ways in which you can invest in gold is surely another major catalyst that enables people to easily park their money in this valuable commodity. Also most times, in the list of different things that you can invest in, gold glitters both for the stability and the overall high return that they promise over the long-term. Given the advances in technology, there are many options to make money if you invest in gold apart from owning physical goods.
You can invest in Gold ETFs or in some cases, also try trading in stocks of some of the related gold mining companies. This also enhances the relative ease of investing in gold. Investing in gold is a little different because the commodity market never sleeps. Trade is continuously underway in some part of the world. Therefore depending on global news flow, you can take advantage of the newsflow and take up position swell ahead of the time when local markets open.
6. Robo Advisors to Manage Your Investment
When you are exploring the different things you could invest in to make money, have you wondered the kind of money you can make by appointing a robo advisor to manage your investment?
This is particularly important if you are not very skilled at managing multiple modes of instrument online. Robo-advisors are essentially automated applications created by investment companies to help people manage portfolios and help you make money with relative ease. However, there are some criteria on which robo-advisors are appointed and enable you to enhance your investment in the market. The investment companies generally ask you to fill up a certain questionnaire to understand the investor’s risk profile and overall appetite to invest. These robo-advisors have very little associated charges and can provide reasonably satisfying advisory services.
As a result for many people who are not well-versed with online transactions, these type of software support provides for rather simple and hassle free transaction. This also broadens the scope for you to invest in different things.
7. Invest in College Education of Your Child
There are different ways to identify the things to invest in to make money. I would suggest the best option is the one that doesn’t just let you make money, but also the one where incremental gains are much higher. In this context, I would say that your child’s college education is one such option to invest in. It is not just about the actual dollars that you make in the bargain but also the overall amount of gains that you reap. Surely when your child gains academic proficiency, this surely becomes an instrument to make money.
This is also a large chunk of expense as well.
In fact, in the past 20 years, college education has gone up by over 5%. Therefore, it becomes an appropriate candidate for you to invest and also make money in the bargain. Called the 529 college savings plan, it provides lots of tax benefits as well to help investors get an incentive to save for it and make money in the process. However, you must keep in mind that this is a state-sponsored plan. So you have to consider the various pros and cons rather carefully and then take a proper decision. Only when you check for the minute details of these state wise provisions, you will be able to gauge if this college savings plan will be worthwhile as a way to invest.
But that does not mean that you will not explore the various provisions of this college savings plan. Don’t let the fear of unknown limit the ways to make money. You could start by investing small amounts, fully work out the overall extent of gains and then go ahead with the full possibilities of the savings scheme, depending on the nature of your requirements.
8. Cash Back Rewards
Look at your monthly fuel, grocery, hotel and many other bills. Even if you received as small as $1 cashback on every payment, can you imagine the exact amount of money that you can make in a month? The biggest of them are the credit cards. The kind of reward points and the cash-back they offer, have you noticed the extent of savings that it could translate into. It is exactly for this reason that cash-back rewards figure so prominently in the list of things to invest in to make money. It is, no doubt, an investment because you need to devote a significant amount of time and energy in making this overall concept work for you.
Amidst the various options that give you the chance to earn these reward points and cashback, I feel credit cards help you achieve these in the most effortless manner. In fact, you get to take advantage of the dual rewards system.
You get cashback on the host of purchases that you make.
Additionally, depending on the extent of your credit card transaction, you would also qualify for a series of reward points. You do not have to put any effort to make money this way. Just need to redeem it carefully. Look out for different credit card deals, compare the amount of reward points that they would offer and then invest your time, energy and resources to procure these multiple opportunities and avenues of savings. However, when you are exploring these different cards to try and invest in the most profitable deal, it becomes necessary for you to continuously compare and zero in on the most profitable options. Moreover, also scout for different things that offer cashback and try to narrow down the shopping initiatives in this manner that helps you make money via cash-back quite generously.
9. Analyze Your Retirement Plan with Care
Your retirement plan often holds the key to the best ways to invest in to make money. Well even if you did not agree on that, you would surely accept, it is one of the easiest ways to make money. All you need to do is invest money in small amounts and rather regularly. The task is rather simple; you can simply reallocate a segment of your paycheck for auto deduction. It could be anything from 1-20%, depending on the extent of money that you could possibly afford to spare. Apart from the savings that it entails, you also manage to take advantage of a plethora of tax benefits that come hand in hand with these kinds of retirement plans.
The Most Common Retirement Plan
The most common retirement plan is the one in which apart from your savings, the company or your employer also puts in a significant amount. These most times are not even subject to income tax till you withdraw them post retirement. When you are probing the many ways to make money, I am sure one of your key pre-conditions is how much money you can get without your contribution. It can be in the form of rewards, cash-back, interest rate and the like. In the case of a retirement plan, it becomes the extent of employer’s contribution to your kitty. Some of the key retirement plans that you could invest in include traditional IRA and Roth IRA. While in the case of a traditional IRA, it is completely tax deductible, Roth IRA contributions are not.
One big advantage of Roth IRA is that all withdrawals are free of tax liabilities if you are above 59 years. With monthly contributions in the range of $5000-6000, it can help you build a sizeable portfolio going forward. The low entry cost while you invest your money is another major advantage. Despite the different things and the many investment instruments available the world over, these retirement plans, therefore, have a completely different charm. Even if you are not eligible for an employer-sponsored retirement plan, you can still go ahead and create your own plan to make money over a sustained period and almost without fail.
If you compare the relative rate of return that you earn, even on those parameters, it stands out.
10. Buying Treasury Securities
When you are exploring the different things to invest in to make money, I am sure that in your mind, you would like to differentiate these into two main heads, conventional and contemporary ones. In the list of the conventional list, one sure way to make money would be Treasury Securities. It is an extremely reliable and utterly dependable option to invest, predominantly for the kind of security that it offers even in volatile market conditions. It is one of the best hedges to safeguard you from stock market swings and sudden bouts of volatility. But remember that most times, these securities are pretty long-term.
You can invest in 30-day securities, or make money from a 30-year long security. Additionally, there are no charges if you decide to withdraw these securities earlier than their maturity time. So anytime the money that you invest needs to be utilized in any other venture, you have the option to redeploy and make money if you want. Those who are exploring ways to make money could also consider Treasury Inflation Protected Securities. The advantage of buying them is that apart from the interest, they also undertake principal adjustment in sync with inflation levels.
11. Buy Mutual Funds with Low Charges
The minimums for various types of mutual funds is one of the primary reasons that this conventional mode of investment is not considered suitable if you want to make money fast. But that reality is changing in a slow but sure manner. Increasingly, investors are beginning to understand that often the profit that they are making gets eaten away by the various charges that levied on it. As a result, there is a constant search for mutual funds that could help them make money and preserve capital. Instead of the thousands of dollars that you have to part with in case of taking position in these mutual funds, your relative income outgo in these special MF is relatively smaller and helps you make money in a far easier manner than you would have considered.
Normally, it is the large mutual fund families that boast of a huge initial deposit money. The special low minimum MFs are generally boutique offerings and make a tidy sum of money. When the deposit charges come down, often investors are encouraged to deposit more amount of money in this instrument.
12. Bank Deposits
This is a conventional method to make money. But at the same time bank deposits can yield stable returns and therefore even in a situation, where the going is rather tough, they can provide one of the safest ways to make money in any kind of market situation. The biggest advantage is they respect all types of investors. Whether you are investing just a few hundred dollars or have investment scale exceeding $10000, all get an opportunity to take advantage of this investment destination. However, you must always remember that the current interest rate would define the exact amount of money that you make eventually.
13. Invest in Real Estate
Given the relatively large sum of money that you need to invest in real estate, it often escapes people’s attention to explore the potential of this market to invest money and generate steady returns. In the list of different things to invest into make money, this can be one of the most attractive ways to male money for the long-term. Systematic payment plans will help you invest in real estate with a lot more ease. But these are only meant for long-term. It will not be able to generate short-term gains for you though.
Undertaking research for investing in real estate is not too difficult. With some bit of patience and diligence coupled with an eye for details, you can easily start identifying potential opportunities. One key advantage of the real estate investment is that it is like gold. They offer absolute stability and even in instances when the real estate rates in a specific might have eroded some bit, the net amount of money that you make will still be intact. Real estate also helps you diversify the income basket in a comprehensive and calculated manner. This ensures maximum return.
14. Rent out Real Estate
You can earn money from real estate by doing different things. In case you have a separable room in your existing residence or have an empty house, you can easily put this property on rent and make money. This type of renting exercise not just supplements your existing income structure but also broadens the scope of options that can help you make money with ease. Moreover, putting a property on rent is not complicated either. You need an honest tenant and some paperwork. You can easily put out ads on Facebook, WhatsApp and other social network platforms as well.
15. Capital Gains Income
In the list of things to invest in to make money, we are constantly striving to bring forth options that are easy to follow and which can yield more money that what you might invest. When you sell an asset at a significantly higher price compared to its buying price, you make capital gains. So it is nothing but the profit that you earn on any given asset that you might have. It could be a house or even a rare painting and often yield a larger satisfying profit from the transactions.
16. Certificate of Deposits
This is another interesting opportunity to make money. Are you wondering what exactly are certificates of deposits and how can you make money using them?
Well, normally banks offer a wide range of terms for their deposit accounts. Their duration of the maturity of these term deposits might range from 3 months to as long as 5 years. You can choose the most appropriate certificate deposit depending on the timeline that you have and the amount of money that you choose to invest. Generally, it is seen that the longer the duration of investment, the higher the chance of getting a larger yield payout. You also have the option to either let the interests accrue till the CD gets matured or get them on a monthly basis. While you get the benefit of compounding if it is left to accrue, if you need a monthly source of income, your CDs can easily extend the help to you. Therefore we can conclude that there are different things to invest in to make money today. But, it is important to remain vigilant and choose an option that best suits your money goal.
You can make money by deploying any or all of the above-mentioned points. Thankfully for investors today, there is a wide choice of different instruments and ways to make money. But that also necessitates that you remain vigilant and choose an option to invest that best suits your investment requirement and targets. It is never wise to follow what the others are doing. Always try and weigh the relative relevance and requirement of the individual investor. It is never wise to commit your money blindly.