Personal Finance

5 Investment Ideas to Start Growing Your Wealth In 2020

There comes a time in everyone’s life, where they want to start shaping up their financial future. While saving money is never a bad idea, the only way to start making the most out of your savings is not keeping them in the bank, but rather investing them.

You have probably heard stories about people who started out with as little as a few hundred dollars and ended up building a fortune, and if that does not convince you, then I don’t know what else will.

Investment Ideas to Start Growing

When it comes to investing, a lot of people fear they might be losing their hard-worked money by making some poor choices, or simply because the market may collapse. While that fear is understandable, you don’t need to start with risky investments right away.

You can first build a steady portfolio, that brings small profits at first, and once you get the taste of it, start diversifying and taking more risks.

If you don’t know where to start, maybe the investment ideas below will prove to be helpful in making your decision.

1] Invest in The Stock Market

Probably the first idea that comes to the mind of anyone wanting to invest their money is the stock market. One of the challenges of investing in the stock market, just like many other types of investments, is leaving the emotional aspect aside and focusing on managing your money.

If you decide on giving the stock market a go, here are your options.

  • Buying stocks online: online investing usually costs much less but does not provide any form of guidance and you will have to learn how to invest by yourself. You can look for tutorials online, find reviews about trading websites and educate yourself before you start.
  • Joining investment clubs: if you want to learn from the experts, you can join investment clubs, where you can meet with other club members, trade knowledge, discuss strategies and get some good tips.
  • Look out for money managers: money managers are people that buy stocks for you and help you expand your portfolio. Usually, you have to pay a fee that is around 1-2% of your total portfolio, but the advantage is that they know how the market works and can help you grow your wealth much faster.

2] Try Real Estate

Investing in real estate does require much more capital upfront, but it is a more secure form of investment. One of the biggest advantages is that properties can provide you a steady income, from people who rent the spaces, plus you have a valuable asset that you can put your hand on if you encounter financial troubles.

Try Real Estate

But if you want to become a landlord, you do have to be aware of the maintenance costs and time involved in the process.

Another form of real estate investment in house flipping. This means buying properties, restoring them, and selling them to make a profit. Now, this form of investment can quickly turn into a real job.

Especially if you get the hangs of it fast enough. What it does require, however, besides enough capital, is time, and a bit of luck to be able to sell the property quickly and for the desired price.

3] Give Crowdfunding A Go

Startups are rising faster than ever, which means entrepreneurs need a way to get funding for their ideas. Since banks are not exactly the friendliest of lenders, a lot of new entrepreneurs are turning to peer-to-peer lending or crowdfunding for financial help.

Investing in crowdfunding is quite simple. You make your account on a crowdfunding platform, which requires a minimum investment to get started and look out for ideas that spark your interest.

The minimum investment necessary to open an account varies based on the type of platform you choose. Some platforms allow you to start with as little as $20, while others do require a few hundred or thousands to open an account.

After setting up the account, you need to start looking for ideas and fund those who you think have a high chance of prospering. Then, entrepreneurs pay you back either at a set interest or with shares int heir company, depending on the type of crowdfunding investment you choose.

4] Consider Forex Trading

Another popular form of investment is forex (FX) trading. The foreign exchange market is the largest and most heavily traded market in the world, which makes it a highly desirable market.

However, FX trading is a bit more complicated than other forms of investment. The market is heavily influenced by economic and governmental factors, which means you need to stay up to date with the news, in order to anticipate trends.

Forex Trading

If you decide to start trading forex, you need to also find a good broker. Since the market is so large and volatile, it can not be regulated the same as other financial markets, but there are, however, some regulatory bodies that keep an eye on both brokers and traders.

Find a broker that is regulated by at least one of the important regulatory bodies in the world, to protect your money and ensure their business is legit. Also, trade with FX brokers that promptly execute your orders, to ensure you benefit from everything the market has to offer.

5] Cryptocurrencies Are Making A Comeback

You are probably familiar with the buzz that was around cryptocurrencies a few years ago. In time, things have gotten a bit slower, and the crypto marked did experience some difficulties, but ever since this year, things seem to be going forward for crypto traders.

If you decide to trade crypto, you need to be aware of the many risk factors that surround this market, starting with the fact that it is unregulated and your financial assets may not be as protected as with other forms of investment.

However, the fact that there is little to no governmental involvement is what draws traders toward crypto in the first place, so there might be some interesting advantages to it.

About the author

Harshil Barot

Harshil Barot is a Computer Geek, Internet Entrepreneur, Blogger, Day Dreamer, Business Guy, Fitness Freak, Music Lover and Digital Marketing Specialist. He also helps companies to grow their online businesses. At Just Web World he Writes about Blogging, WordPress, SEO, Business, Technology and Computer Tips and Tricks.

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1 Comment

  • Investment is best way to gain financial stability for the future. Real estate is not only about buying and selling a house. It is a science that can be used to improve the economic conditions of the country and to get financial independence on an individual level.

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