90% of Americans want to invest, but most don’t have any idea where to start. This isn’t an America-centric problem. People all over the world are letting their money sit and lose value rather than investing it.
So how do you even get started with short and long-term investments? Let’s talk about it. Read on to learn about a few 2023 smart investments you should make.
While it’s true that the crypto boom has certainly calmed down, that doesn’t mean that cryptocurrency is no longer a good investment. Right now, prices are low. What better time is there to invest in crypto?
You should do your best to choose coins that seem to have long-term value. Keep in mind that this may not be a “quick money” investment. You’ll be putting your money in and letting it grow slowly over time.
Choose coins with names you can recognize. Of course, Bitcoin is the most popular, but it’s also the most expensive. You could take a bit of a risk and choose a cheaper coin that has had significant blow-ups, like Dogecoin. You can see Dogecoin value CAD here.
Crypto investments are always a risk, so do your research before you buy. It has a lot of future potential, but you have to choose the right coins.
2. High-Yield Savings Accounts
High-yield savings accounts are safe and easy investments. If you can get one, you should. The sooner you do it, the more money you accrue over time.
You never have to worry about losing your deposit when you choose a high-yield savings account. Your money is secure. This makes it far safer than investing in stocks, crypto, or even real estate.
Traditional savings accounts generally don’t gather much (if any) interest over time. Move your money into a high-yield savings account, so it’s actually working for you rather than losing value with inflation.
3. Real Estate
Real estate may not be as hot of an investment as it was a year or so ago, but if you’re smart about it, it can still be a great decision. Rather than trying to turn a property into a short-term rental, invest in a current multi-family property, keep reliable tenants, and make your money slowly over time.
People will always need housing. If you’re a reliable and hardworking landlord, you will easily be able to make money from a real estate investment. Don’t fall into the trap of thinking you need dozens of properties to make money.
One good property with good tenants is enough. You could even consider buying a duplex or apartment, living in one unit, and renting out the other(s). This way, you’re investing in your own future by paying off your mortgage while also earning money.
4. S&P 500 Index Funds
Investing in individual stocks is tricky. Instead, invest in an index fund. This allows you to invest in multiple stocks at the same time, and you earn more money as the market (as a whole) improves.
It’s still a risk, but it’s much safer than individual volatile stocks. You’re not relying on one company to make profits, and you’re far less likely to experience a significant loss.
Of course, this also means you’re less likely to experience significant short-term gains, so keep this in mind when you’re investing. This is a slow long-term investment.
Try These Smart Investments This Year
Make your money work for you instead of just leaving it sitting in the bank! These smart investments will help you slowly grow your wealth over time. The best time to invest was ten years ago, but the second best time is right now.
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