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The start of a new year can bring with it some resolutions for change – especially when it comes to your money. Finances often top the list of things we want to improve. So, just how are people investing their money in 2018? Pretty much the same way they invest it every year. There’s no dancing around the fact that the stock market has been on fire for quite a few years. On top of that, there’s also real estate and the emerging cryptocurrency craze that’s sweeping the country.
Here are a couple of things the forecasters are reporting to be good to invest in this year. They’re not so different from other years, with the exception of the last one. But, as with anything, it is imperative you do your research before investing a single dollar of your hard-earned money into anything. By making an informed decision, you’re more likely to be in a better position to avoid catastrophe than someone who made a quick decision on a whim. So with that, let’s take a look at some of the biggest ways people are investing in 2018.
The Stock Market
Hearing about the stock market can be intimidating if you don’t understand it. But, not to worry, after getting the basics out of the way, you’ll understand all those charts and acronyms that news anchors tend to toss around like they’re candy. If you want to learn the basics start here!
The important thing is to understand what you are investing in before you buy a single share of stock.
There are a ton of ways to invest in the stock market, ranging from lump sum investments to dollar cost averaging – adding smaller amounts over a period of time. Depending on the amount of money you have to invest, your risk tolerance, and your goals, deciding which is right for you might be easy.
Take your time and don’t jump into anything without doing your homework. Some people choose to invest in mutual funds that are made up of large companies like those in the DJIA, while others choose a single company like MJNA stock. Either way, know the risks. Investing in single companies is higher risk and potentially higher reward – but don’t forget, the opposite is also often true.
Another investment strategy people tend to gravitate towards is real estate. Understanding real estate investing seems fairly simple. You buy a house and rent it out. Well, not so fast. There is more to it than meets the initial eye.
Becoming a landlord isn’t the only way to invest in real estate. Some choose to flip it by buying low, rehabbing and reselling, while others choose to lend money to flippers. There are plenty of local real estate groups around the country that are great for networking. And, there are also sites online like Fundrise, that you can use to get into property investing.
Whatever you decide, your personal strategy needs to be well-thought out before signing on the dotted line and getting the keys.
Other articles you might enjoy:
- Investing In A Vacation Home: The Pros And Cons
- 5 Must-Read Tips For Any New Landlord
- Making Money From Money: 4 Ways To Invest In Currency
Cryptocurrencies have started a worldwide craze that can’t be ignored. Top cryptocurrencies like Bitcoin and Ethereum are definitely worth learning more about. But, never invest in anything you cannot understand. And, never invest any money you cannot afford to lose – completely.
Even though these currencies are on the rise, it can still be tricky to get your invested money back out if you need it. As far as crypto goes, do your homework, and then do some more.
Do you have go-to investments that you like to make? What experience do you have in investments?