With the New Year well and truly underway, it is now the best time to start considering your personal financial forecast for the year. Which means looking at your current cash flow, the opportunities on the horizon and what you actually want to achieve with your finances this year. If the answer is growth, then finding good investment opportunities is the best way to achieve this throughout 2019.
For that reason, here are a few of the best investment options, which can help push your 2019 to the next level.
The Stock Market
A tried and tested investment obviously comes in the form of stocks. Rising and falling markets are common in this type of investment, which can deter people from pursuing what they may often consider to be a ‘high risk’ investment scheme. However, this is not necessarily the case, especially if you know what trading mistakes to avoid.
The return on investment from stocks is why it is such an appealing investment stream. That and the fact that you can use online brokers in the modern world to trade stocks, no need to run down to your nearest Stock Exchange for the privilege. Choose a broker with low rates, especially if you plan to trade infrequently – which you should in order to maintain profit – and ensure the platform is user-friendly. You want to understand the trades you are making completely so a confusing platform would be counter-intuitive to this.
If you’re really unsure about stocks, then it is possible to practice at stocks first. Some brokers offer a trading platform which is based on the real market, but doesn’t actually involve trading real money. It’s very much like a ‘game’. But, it can offer you the chance to gain real experience when it comes to stock trading, invaluable if you’re unsure or nervous about trying to enter this money stream. Practice makes perfect, after all. You can try this with a virtual stock exchange such as this one.
Commercial & Private Real Estate
Property is one of the biggest investment opportunities in the modern world. It’s a stable market, which is why so many people are looking for either Buy to Let opportunities or ways to invest in commercial property. Offices, warehouses, storage units and even just plots of land can all fall under this category and be a worthwhile investment. And a property portfolio doesn’t necessarily have to start off large. Starting small and working up is an ideal strategy.
If you cannot afford an outright property, then part-ownership schemes are very popular at the moment. You can also invest money in commercial real estate shares put on the market by larger property management companies. Make sure if this is the route you go down that you have a good corporate solicitor on your side in order to protect your financial assets in any agreements made. One of the most important factors of investing is ensuring you and your assets are protected whilst doing so.
There is a worry that the current trend of raising property prices is a bubble waiting to pop. But, even if that does happen then there is still a tangible income available. The sell-on price may drop, but if you rent or use the property for your own business purposes then there is still value held there. So, a worthwhile investment no matter the changing state of the market.
A good investment, no matter the economic climate, is to put some money aside to pay off your personal debts. Being debt-free opens up the possibilities for other investments and also gives you more financial freedom. It’s not as glamorous as the stock market or property, but if you’re in a position to make investments, then you should think about using that spare capital to pay debts.
Wealth is not only determined by your assets, but also by your liabilities. Debt is a liability which can affect your overall wealth, so keep it in check as much as possible!
Also Read: Investment Ideas You Should Try Out in 2018
Starting a Business
Investing in yourself and advancing your career is perhaps one of the best investments you can make. Full stop. Which can mean putting money aside to start your own side hustle or full-blown business.
The long-term value of being in charge of your own money-stream is undeniable. Considering the political and economic uncertainty at the moment, having a second income to support you during what could be difficult times is obviously a big bonus. And it doesn’t have to be a substantial stream of money, after all, it all depends on the amount of time/resources you have to invest in the project.
And don’t forget that any money you earn from a side hustle – after tax – can then be fed into your other investment opportunities, such as stocks or property. It can become a cycle of good financial planning.
On the whole, there are plenty of investment opportunities out there, but only some of which are actually worthwhile in the long run. Remember to consider your options carefully when it comes to investment, research fervently, but also consider that being overly cautious can sometimes be worse than not investing at all in some cases.