Many families are looking for ways to boost their income in the medium to long-term. Some choose to work on getting promotions or stating side hustles to bring in more funds. However, the smart ones know that they can create additional wealth for the money they already have through investing. Something you can find out more about in the post on our subject below.
Anyone looking into investing as a method of boosting their families finances will come across the new phenomena of cryptocurrency. Yes, it does sound all high tech and science fiction, but it’s not as complicated as many people think.
Crypto is a digital form of currency that differs from traditional money in that it not released by centralised banks. Something that meant they do not have as much control over the market.
Crypto works decentralised way in that the transactions that are made with this currency happen in small chunks across many different computers. This is a process known as mining and individuals that allow parts of their computer to be used for this can earn money too.
However, as we are primarily talking about investment in this piece, it’s important to note that Cryptocurrencies are traded in a similar way to the Forex market. What this means is that profits can be made by buying crypto at a lower rate and selling it on at a higher one to a different exchange. Although, it’s pretty easy to lose money in this way too as the markets move so quickly.
It’s also important to note if you are considering investing in crypto that there are hundreds of options to pick from. Yes, the most well known is Bitcoin, but as everyone knows about it the potential for swooping in and buying it low and then selling at an inflated price is pretty slim. With that in mind, check out the info on the others on the market to help you make in the video below to help you make a better choice.
However, many films especially when it is their families future they are investing in feel much safer putting their money into property. Property investment is often seen as a more stable option because the trade isn’t just in the visual space of online platforms but in the real world and you get a real, physical house for your money.
Of course, there are many different investment options in property, and some require more involvement and time than others. For example, you may choose to invest in high-end business lets. These are abodes that are leased out for a short space of time to travelling business people. They are furnished to a high standard and usually in salubrious locations, and this is reflected in the price charged for using them. Such lets can often be purchased through a management company, who will then take on all the responsibility for cleaning, maintenance and finding tenants. Something that makes it a low effort invest with the potential for a good return.
However, at the other end of the spectrum, some folks choose to buy a residential property at auction that is dilapidated. Then renovate the home to flip it (Selling it quickly for a profit), or leasing it out. The latter being something that ensures the mortgage payments are covered, and so when you do come to sell, you will be able to take a large cut of the profit for your family’s finances. Of course, as with all type of investment, this does depend on how the market is doing, and money can be lost this way and well as won.
Another option you may wish to consider for your family investment portfolio is penny stocks. Sadly, such stocks rarely ever cost a penny these days. In fact, they are usually sold at around $5 a unit.
However, they are often significantly cheaper than regular stocks and as such do not trade on the bigger markets like the LSE. They are also inherently riskier as well. This is because the companies that they come from are not at the success level that would allow them to accepted onto the larger exchange, what this means is that status as significant contenders is still in question. Therefore their stock could go either way, something you can click here for more info on risk, as well as some recommendation to help you make savvy choices.
It is these extreme risks that put many investors off of penny stocks and leads to those that are investing in the area to study pink sheets and any other additional information they can get on these companies intently, before making any moves. Something it is worth thinking about before you part with your families a nest egg to invest in this area.
Lastly, some families consider the option of owning or part owning a business to build their wealth for the long term. Business ownership is a very flexible option that can work for many different types of people. This is because you can get involved and be on the shop floor and talking to customers each day, or you can be a silent partner and just let the business do its thing and then collect your profits at the end of each quarter.
Of course, before you invest in this area, you need to consider not only the viability of the business in the long term but also the amount of effort that you will be required to put in and how this will mess with your family’s current situation.
You also need to carefully vet anyone you partner with or employee to ensure that they are the best possible people to have in that position. After all, they have the safety of your investment in mind when making decisions that pertain to running the business if they are going to make money in the long run.