With Your Emergency Funds Squared Away, It’s Time To Start Investing
Once you’ve built up a sizable emergency fund – we recommend three to six months worth of financial padding to pay bills due to any expected loss of income – it’s time to put your excess money to work.
With a diverse range of investment opportunities, it may be difficult to determine what’s best for you. Here are just four options that will pay you handsomely in the long run.
Pay Off Debt
Although credit cards allow the painless purchase of goods and services with the swipe of a card, its long term presence in your life has several drawbacks. For one, the cost of using debt adds up. There’s a reason why credit card companies allow you to pay them back later – it makes them money! And if your credit score is low to start with, you’re paying even more money for that privilege. There’s also the serious matter of debt causing stress on your health. When times get tough, stress can lead to depression, migraines, and in the worst cases, heart attacks.
Invest In Yourself
For those that want a smart way to splurge on themselves, this option is calling your name. With $1,000, invest in several education courses that will help you become an expert in your chosen field. Or, use that money to invest in hardware and tools so that you can start that small business you’ve had in the back of your mind for years. Or three, as simple as it sounds, invest in your wardrobe. Your first impression of a stranger is set by their dress. Invest in yourself so that others see the value as well.
Open A Brokerage Account
If you really plan to grow your income and net worth, outside of a job promotion, that is, the stock market is going to be your best bet. Become a part of the market and purchase positions in your favorite companies – the very same ones you use and trust. For example, tech companies like Apple and Microsoft always seem to be growing in size and revenue. Plus, both of them pay out cash dividends each quarter to loyal supporters.
Invest in Real Estate
With the mention of real estate, don’t worry, we’re not suggesting you go out and buy a home or commercial property. You won’t be able to buy anything outright for $1,000, anyways. Thanks to online real estate crowdfunding websites like RealtyShares, Lending Club, and PeerStreet, individual investors can become partial owners and renters of properties across the United States. Conditions will vary with each of these entities listed, so be sure to complete your own due diligence.
Do any of these opportunities catch your fancy? Be sure to conduct your own research and determine your own risk tolerance to evaluate which option(s) sound the best.
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