In a world where finances are our top priority, it’s important that everyone becomes aware of the many ways in which we can generate money from the money we already have. Making our money work for us can be one of the smartest things we can do, and one of the ways in which we can do this is by investing our money in the economy.
There are many people who don’t know all the options we have to make investments, in fact, there is still a large proportion of the population that remains aware of such options. This can be due to the inability of individuals to research this information, the lack of motivation to learn about the economy and finances, or the little free time many might have due to working multiple jobs at once. For those of you who need a bit more guidance on investments to improve your finances and live a better life, continue reading for the five most common types of investments and how you can get started on each of them.
1. Stock Investments
Stocks are one of the most common investment options out there. If you’ve read a little bit of news recently or have spoken to others about the economy, chances are you’ve heard about stocks. Stocks are shares or portions of a company that you can invest in. Companies like Apple, Tesla, and Amazon all have stocks in which you put your money for growth. Once you invest in these companies, you become a shareholder and automatically generate profits depending on the success of the company.
Another variant of a stock is called a penny stock. A penny stock works just like a normal stock, the only difference is that each share costs less than a dollar. Some of the best penny stocks to buy now in Canada include 5NPlus (VNP), American Lithium Corp (LI), CloudMD Software & Services (DOC), and Drone Delivery Canada (FLT). You can start investing in penny stocks through applications like Wealthsimple and QuestTrade.
2. Real Estate Properties
Another popular type of investment involves real estate properties. Real estate is one of the most convenient ways to make money. You can invest in real estate by purchasing a house or an apartment and renting it for more than it’s worth so it can pay itself off without needing any more investments on your part.
3. Exchange-Traded Funds (ETFs)
ETFs have gained popularity in recent years due to the development of cyber technology which allows us to trade digital art in the same way we trade goods in real life. ETFs are a type of collection of investments that have a fluctuating value depending on the market. This type of investment is usually recommended for new investors due to its diversity. If interested, you can start investing in ETFs right within the stock market by using your choice of Robo-Advisor.
4. Cryptocurrency
Another popular investment option is cryptocurrency. If you’ve heard of Bitcoin, Litecoin, or Kraken, then you already know about cryptocurrency. Cryptocurrency is nothing else than a digital currency that can be used to purchase goods and services. Instead of using the US dollar, you can use crypto to purchase almost anything in the market. You can invest in cryptocurrency with an app like Coinbase.
5. Retirement Plans
Lastly, you can take control of your future and invest in your retirement plan. Your retirement plan will sustain you when you can no longer work during your senior years. You can invest in your retirement through your employer’s 401(k) plan or other options like a Roth IRA, a CD, and even the stock market.
Try any of these options to dive into the investment world today.
Ayesha completed her Doctor of Philosophy in Biochemistry and started her career as a College Lecturer in 2013. Today, she’s a happy mom of 2 Kids in the field of digital marketing. She loves reading books, spending time with her family, and making delicious food for her husband.
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