Everyone wants to take their money and multiply it via savvy investment opportunities, but not everyone knows how to get started. Understanding investing can be difficult for those with little to no financial experience or education. Unfortunately, it’s not something often taught in schools.
If you’re considering investing for the first time and don’t know where to begin, consider these three proven financial investments that will multiply your cash flow with little risk.
Money Market Funds
A money market fund is a mutual fund, meaning that your initial investment is handled by a third party, i.e. a bank does the actual “investing” for you and you simply wait on the returns. A money market fund is a short term investment where your money is put into “safe” securities, such as government bonds. Government bonds will never yield as high a profit as riskier securities like stocks, but they’re a safe bet for the investor who isn’t willing to incur a loss.
There’s a reason that real estate has always been considered one of the safest investment options for those who want an extremely high return. Property is a high value tangible investment that almost always appreciates rather than depreciates. Even if property values in an area temporarily fall, investors will typically still see a return on their initial down payment if they’re willing to ride out fluctuations in the market. If you’re interested in investing in a property that needs repairs, fix and flip loans are available specifically for real estate investors looking to flip properties.
Paying Off Debts
Many people don’t think of paying off interest-incurring debts as an “investment.” However, if you’re looking to increase your monthly earnings via a one-time payment, paying off all credit card debts is one of the best investments you can ever make. If you’re carrying debt month-to-month, you’re racking up unnecessary interest expenses. That’s money that you could be investing in one of the aforementioned money-making opportunities. Think of paying off debt as “walking before you run.” Once you stop losing money to interest, you can actually invest in things that will earn you money on interest.
We all want to make the most of the money we have. Any of these three financial investments will help you to earn more each month so that you can begin living the life you want to live, instead of the life you think you have to live.