Disclaimer: The information below is not intended to be professional investment advice; this is a blog post and these are just the author’s opinions.
If you want to earn some extra cash (And let’s face it. Who wouldn’t?), investing can be a great way to do so. The best ways to invest funds changes over time, but at the moment there are certain investment areas that are more lucrative and consistent than most.
As someone who enjoys reading a ton about investing and is currently finishing up his MBA program at West Chester University in West Chester, Pa., Ray Bonnett has written this post about different types of investments.
Peer-to-peer lending platforms such as Lending Club and Prosper allow you to lend money to those in need and earn interest off of the loan. This option usually earns you a pretty good return on your investment, many times upward of 6 percent interest or more. It is easy to get signed up and started with these peer-to-peer lending companies, and typically you can open a new account for as little as $1,000. You’ll also have a fulfilling feeling knowing you invested in other people and their goals.
Not everyone has the resources or skill set to be a landlord, so Ray Bonnett isn’t suggesting that we all just go out and buy investment properties, but real estate is a smart investment that those who are able to handle it should check out. But investing in real estate can be detrimental if you don’t know what you’re doing. But there are ways to invest in real estate without actually having to manage a physical property. One way to do this is by investing in real estate notes, which allow you to invest in a pool of properties that are bought by a landlord. The property owner manages the properties while you get paid off of dividends or interest from the money he earns without having to be a landlord or deal with tenants.
While this might seem like obvious advice, Raymond Bonnett felt the need to add this to this blog because investing in the stock market is sometimes misunderstood. Yes, history shows that investing in the stock market is typically an investment that pays off. However, there are plenty of people who are hesitant to jump into the market because they don’t trust it or because they think it’s too flooded at the moment. But there’s a conservative way to play the stock market that calls for you to just invest small sums of money over time. It is called dollar cost averaging and it is a method of slowly investing your money in the market over an extended period of time. The principle of dollar cost averaging is buying fewer shares when the market is high and fewer shares when the market is low. So of the best ways to initially get started in the stock market is to invest in mutual funds or ETFs.
Raymond Bonnett hopes this blog helps you make sense of these terms. After completing his master’s degree in West Chester, Pa., Ray Bonnett will likely have even more knowledge to share with you on his Ray Bonnett blog.