According to financial experts such as Warren Buffet, the best time to start investing for the future is when you are young. This is good advice because it can take years for your financial portfolio to grow.
If you are looking for ways to make money through financial investments, you should know there are many ways for you to achieve your goal. Here are a few good financial investments that you can make when you’re young.
1. Provide short-term loans to customers.
There is no shortage of customers who are in the market for quick short-term loans. That’s the reason that installment loans and payday loans have reached an all-time high.
If you have a nest egg, you can start a service that provides these types of loans to customers in need. The reason this is a good investment is you can charge high interest rates to customers who borrow your money.
2. Work for a company that provides a 401(k) plan with matching contributions.
Although you are young now, you should contribute as much money as you can to a retirement account. By selecting an employer that matches your 401(k) contributions, you can quickly increase your retirement income.
You should aim to contribute as much as 20% of your income to your retirement account. With matching contributions from your employer, it’s just like getting free money.
3. Purchase stocks.
Purchasing stocks is easy when you open an account with an online broker. For less than $5 per trade, you can become an active participant in the stock market. Here are some stock investment tips you can apply.
- Invest for the long-term.
- Don’t purchase stocks because of a hot tip you received from a friend or television show.
- Let go of stocks that aren’t consistently performing.
- Monitor your portfolio.
- Remain calm when your stocks decrease in value.
- Develop an investment strategy.
4. Invest money in your own company.
Even if you work for a company, it is wise for you to start a business that you can build in your spare time. Instead of purchasing lavish vacations and expensive gadgets, you should invest money in your business.
The good news is it doesn’t cost a lot of money to start a business. If you start a service-based business, your initial investment may be less than $100. Depending on the amount of money that you charge for your services, you can recoup your initial investment in less than a month.