In today’s fast-changing economy people are seeing the necessity of becoming financially independent at some point in their lives. The sooner the better. Unless you have a magic wand to flick, any approach you take will require time, knowledge and discipline. And the sooner you start sewing, the sooner you will be able to reap the rewards. What it all boils down to is investing. Now, that sounds easy but it means investing in profitable causes. And those are constantly changing along with the turbulent global market we find ourselves in. The problem with any young individual is that they do not have an inkling where to invest their hard-earned money. Yes, there is a plethora of possibilities but what will give you the best ROI (Return on Investment) with as little risk as possible? Let’s go over some of the most profitable and secure ways to ensure your financial freedom.
The Stock Market
The first and most obvious place to invest is the stock market. It is in every movie, every business 101 class, and the most basic advice you can get. And there is a good reason for it, don’t get us wrong. Historically, investing in stocks has paid off for a lot of people. It does require a degree of knowledge and experience. But what it also requires is constant vigilance and reinvestments in order for it to be worthwhile. Lately, there has been a lot of animosity towards the global stock market. In most part because of the global financial crisis of 2008. We have recovered, mostly from it and here’s the thing: you do not have to invest everything you have in it. One of the main principles of investing is, simply put, not to put all your eggs in one basket. Diversifying your investments will act like casting a wide net. If a part of them go under, the other will continue to pay dividends.
Investing in Cryptocurrency
There is no way around its cryptocurrencies are the inevitable future of finance. So much so, that it may seem unappealing. This form of holding value is in its very early stages. What it means is that massive fluctuations in its value are frequent and predictably periodical. Such a turbulent climate has made a lot of people invest out of impulse and emotion, not knowledge. And that is always a bad thing, remember that knowledge, discipline, and consistency are key when investing in the long run. The main thing to take away from this is that if investing in crypto, think very long-term. Learn about the risks and managing blockchain based currencies. It is a volatile, high risk but also high regard market, that if handled properly, can be the biggest investment of your life.
Investing in tangible assets
Until now we have been talking about soft assets, the types of which you cannot put a shape or a face on. These assets are somewhere in the cloud, flowing and being manipulated remotely. On the other side, there are a plethora of investment opportunities in tangible value preserving assets. Some of the most efficient ones are real estate and precious materials. While real estate does require a certain amount of maintenance and regular legal fees, diamonds are maintenance free. Easily acquired and transportable, they are amongst the best ways to preserve value. Another factor to take into consideration is that they do not decay. In translation, their value does not diminish over time. One more advantage over our first mention in this guide is that they are highly resistant to market fluctuations and crisis. Gemstones seem to be impervious to inflation and market collapses. We can see why there is an increased interest in investing in diamonds in Australia and many other parts of the world. The famous “A diamond is forever” saying is there for a reason and not just a hollow statement. These precious gems also serve an emotional purpose as they are used as wedding rings and jewellery in general. Beautiful, durable, marketably stable and practical, they represent one of the best ways to preserve value and hold investments for the future.
We can see a common trend with all of these forms of investment. There are always two components that are usually at odds with each other. And those are return on investment (ROI) and the risk involved. There is always a tradeoff between what you would consider an acceptable risk and a potential reward. We need to ask ourselves why do we want to achieve financial freedom? A thing we can agree on is that we all want to enjoy life now, as well as in the future. What that constitutes is up to you. Make the most value out of your life and create even more for your loved ones in the future.