Three Investments That Will Actually Make Your Life Better


If you want an opportunity to make yourself rich, you need to do more than just make money. You need to invest the money.   You might be thinking to yourself that right now is not the time to talk about making investments, especially given the current economic climate and ongoing COVID-19 pandemic. On top of this, you are worrying about all of the other day to day things. Can you really spare the mental space to think about investing your hard-earned cash?    


However, really, there is no great time to think and talk about investing. At the end of the day, you have to be responsible enough to hang on to the profit you make – and then take the next step in learning how to make your money grow.


The best way of making your money grow is to learn how to invest it properly. 

When you invest, you use your money to gain things that offer the potential for profitable returns. This might be done through one or more of the following:


  • Cash flow from real estate or other business
  • Interest and dividends from stocks and bonds or savings
  • Increase in value from a real estate portfolio, stock portfolio or other assets


All forms of investment carry risk, but not all risk is equal. Here, we look at some of the most popular investment methods and the pros and cons of each so that you can make an informed decision.

Stock market

When people talk about making an investment, the first thing that comes to mind to many is the stock market. It is a pretty simple concept: you buy shares in one or more companies with the intention of making a profit. 


It can be as easy as opening a brokerage account and choosing a few individual stocks or mutual funds. The whole process can usually be done online, and there are services that can invest in stocks for you for a small fee.


As a shareholder in a business, you will enjoy a proportion of profit and see the value of your shares increase if the company succeeds. 


Several prominent corporations – Apple, Coca Cola, and Disney being some of them, are publicly traded, allowing potential investors the ability to own a piece of such large and profitable businesses. In addition to large-cap stocks, investors may also invest in smaller companies with the potential to become bigger in the future.


The Pros


High returns: Stocks have yielded one of the highest average returns in the different asset classes over the long term. When you are searching for stability in your portfolio, investing in equity is usually the best way to go.


Revenue from dividends. Many companies usually distribute a portion of their earnings to their shareholders. If you are an investor looking for a passive income, a dividend-growth strategy will pay off very well.


Stocks are simple to diversify. You can invest in a variety of stocks in different countries, sectors, and industries that offer you numerous growth opportunities and diversify your risk. 


Stocks are very liquid. Any of the stocks traded on a major exchange can be quickly bought and sold. This liquidity gives investors the versatility to turn their stocks quickly to cash if necessary.


The Cons


Volatility in the short term. Stock prices can rise or fall abruptly due to a reaction to good or bad news. This instability makes stocks more volatile than bonds. 


If you choose the wrong stock, you risk losing the value of your investment. Likewise, a lousy performing company will see its dividends plummeting or flatlining. 


Knowledge and time are required to evaluate a stock. That’s not to say that having to assess a stock is a bad thing (this is what distinguishes prosperous investors from the rest), but it just takes more time and energy to pick the right stock than other forms of investment.

Precious metals


Throughout history, civilizations have held value in precious metals. This almost global acknowledgment of its value makes gold, silver, and other precious metals a superb long-term investment. Investing in precious metals offers insurance against factors ranging from inflation to social disorder.


The Pros


Physical metals can not be damaged by fire, water, or even time (silver takes periodic care). However, unlike commodities, they do not need maintenance, feeding, or fertilizer. It also cannot be hacked, unlike many of the digital assets that people invest their money in at the moment.


Gold can diversify your portfolio. Diversification makes sense, and gold won’t react to events in the same way as traditional asset classes in your portfolio.


No specialist knowledge is needed to invest in gold, whereas investments in something such as fine wine or art requires a degree of expertise. However, apart from knowing the weight of a gold bar, there is nothing more you need to know.


The Cons


Whenever you purchase physical metals, whether you buy coins, or invest via certificate, you pay a premium. As well as that,  if you do not store it yourself, you will have to pay for storage.  Certificate metals typically come with daily storage fees, and you will have to pay for transportation if you have it shipped to your location.


There is always the risk of theft when you have precious metals. You run the risk if you store it on-site, at home, and you run the risk that the storage facility will be robbed. When you place your precious metals in the bank’s safe deposit box, make sure that the bank has insurance expressly designed to cover these thefts; FDIC / CDIC insurance is not going to be enough.


You could be forgiven if this one has passed you because, in the world of investment, it is a pretty new player to the game. 


A cryptocurrency is a form of digital currency. It has been around for just over ten years, and it has grown exponentially in that time. A cryptocurrency is a form of payment that can be exchanged online for products and services. Many organizations have created their own currencies, also referred to as tokens, which can be traded directly for the goods or services offered by the company. Think of them as if you were playing casino chips or coupons. You would need to swap real money for the cryptocurrency to access the product or service.


The most commonly used form of cryptocurrency is Bitcoin. The cryptocurrencies work by using blockchain-based technology. Blockchain is a decentralized system that manages and records transactions distributed across a wide range of computers. The security of the currency is part of its appeal.


The Pros


It is completely anonymous, which is the main draw of the currency. This is ideal for those who value their privacy and are wary about handing over too much of their personal data online. However, this can be a disadvantage as well, as it is used by the criminal underworld and users of the dark web. 


It is instantly accessible. It is possible to buy or spend wherever you are, even without a computer. This means users and investors can keep an eye on their finances and make investment decisions whenever they want, wherever they want in the world, with nothing more than a mobile device.

The Cons  

If something was to go wrong, there is no security. The best way to deal with this is to think of cryptocurrency in the same way that you would think of normal, physical money.  It is also important that if using it for buying, selling or gambling, that you follow standard security protocol.


It is also a novel form of investment. It has only been in existence for just over ten years, so in terms of its longevity and value in the long term, there are still lots of unknowns. 


In Conclusion


As you can see, there are many ways to invest your money to make a good return, whether it is twenty-five years down the line or the very next day. Remember these main points to prevent money loss and your disappointment: 


  • Always do your homework before you invest your money 
  • Keep an eye on the economy before, during and after investment-it will help you make future decisions.
  • Look at your money. Little but often amounts of maintenance will help to prevent unpleasant surprises.


Seek expert advice. If you are looking to invest in stocks or cryptocurrencies, get an opinion from someone who has been in the field for a while.