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If you have a surplus of cash, you’re in a very fortunate position. Most people are having it tough right now with the cost of living crisis and the constant interest rates being risen. But if you have some cash that you are looking to invest it, then checking out your options is the way to go. Investing your money is about making your money make more money for you. There are many different ways of doing this, from stocks, bonds, real estate, and more. Let’s take a deeper look.
Some people want to make money by managing real estate, either through rental, flips, or REITs, while some prefer stocks and bonds. Some mighy choose to invest with companies such as Alumni Ventures so that they can watch their money grow over time. Nothing is without risk of course, but investing for the long term does have a decent track record as long as you do your homework up front before putting your hard earned cash into any investment vehicle. Let’s take a look at the top five reasons to consider investing your money:
- Inflation. We just mentioned the cost of living and it is becoming a big crisis. We’re getting to a point where we’re all going to own nothing and apparently be happy about it. But would that our money have to go somewhere? If you have some surplus cash sitting there and it’s not going anywhere and it’s not growing, then you need to. Evaluate what you’re doing. You need to make sure that your cash is working for you in a positive way. So it’s important that if your wages are not increasing and the cost of living is increasing, that you’re making your cash go further for you.
- Compounding interest. Investments help you to make gains and earn interest on your money. If you’re investing some cash with an interest that’s paid yearly at 10%, you’ll be able to have earned money on that cash that’s been set there. So instead of earning nothing on your money, you’ll earn a lot more if you put it to work for you. The compounding interest will help your cash to grow and that ensures interest earned on the interest earned. Get it?
- You can invest for growth. If you want to grow your money then you can keep it working for you. You want to invest your money with a mindset for growth, too, so don’t be fooling yourself that your money won’t work for you! You just have to be smart about where you are putting your cash because investment is always a risk!
- Stock investments are passive. Index funds are a great way to do this, and so are dividend shares. Either way, you earn money simply by holding those shares.
- Meeting your long term goals. Your goals for saving money is important – you want to ensure that you are earning and investing can do that for you!
