Want to Start Investing for the Future? Here’s How to Do It With Your Next Paycheck

by Josh Biggs in Finance on 15th July 2020

Whether you recently got a raise or you want your existing savings to start generating a higher yield, it can be beneficial to your long-term goals to find a way to invest those funds. 

This is especially true if you don’t want to wait for months or years before your big investment decision. After all, not being a billionaire shouldn’t stop you from benefiting from your hard-earned money. At the same time, making hasty investments in the name of affordability can do more harm than good.

Fortunately, finding sophisticated investment solutions is not impossible if you know where to look. To help you through this complex financial decision, here are a few suggestions on how you can start investing with your next paycheck.

Are You In a Higher Income Bracket? Turn To Private Equity Firms

As specialized investment firms that buy and sell businesses from their investors’ funds, private equity firms are among the easiest ways to earn money for those in the higher income bracket.

From sourcing out businesses to working smart to make profits, these private equity funds do all the heavy lifting, so you don’t have to. These funds are a popular way to start on the path of being an investor.

Open to Riskier Investments? Look Into Penny Stocks

If you don’t have a sky-high income or net worth, it’s no reason to hold back from lucrative investments. You can still put your funds towards other popular models.

Penny stocks or over-the-counter (OTC) stocks are priced at less than $5 per share and are more affordable than regular stocks. Typically available via broker-dealers, they often allow you to tap into companies that are scaling their operations.

However, not all of these firms are bound to meet their golden destiny. Penny stock investments can come with a high risk, yet they provide a higher return on investment (ROI) if your chosen stocks hit it big.

Want to Play It Safe? Find Lucrative Savings Accounts

Placing your money into a savings account might seem boring. It also doesn’t provide you with as much ROI as many other investment models. However, a savings account is one of the simplest ways to protect your existing funds.

Start by comparing the interest rates of high-yield savings accounts. Doing so may help you discover lucrative offerings that allow you to earn a passive profit on your funds. However, due to their low rate of return, these accounts are mostly ideal for fulfilling plans that are far into the future.

Big banks and financial institutions offer these types of accounts, making them easy to find. While they may not provide a profit as quickly as other methods, they pull off the job of starting investments quite efficiently.

Ready to Access Alternative Assets? Trade Cryptocurrencies

As an alternative yet fast-growing market, the cryptocurrency sector is one of those investment models that comes with high risk but can provide noticeable results.

What adds to this segment’s status is its easy accessibility. With several popular U.S. cryptocurrency exchanges allowing you to buy and sell digital assets, it’s simple to start in this sector.

However, trading cryptocurrency does come with a considerable amount of risk. Due to the market’s volatility and fluctuation, it’s vital that you only start small with money that you can afford to lose. Once you get the hang of it, you can make more substantial investments or indulge in cryptocurrency day trading for tiny-but-swift profits.

Remember to Protect Your Funds

It’s prudent to note that the U.S. Security and Exchange Commission (SEC) will allow you to make higher investments only if you earn a consistently high income or hold a certain level of assets. However, these requirements are not difficult to follow and are in place for your protection.

Find Your Niche

The investment groups who back tech companies do it. The Chernin Group (TCG), for example, operates in the niche of companies that define culture, and their portfolio is full of companies who do exactly that. As a private investor, you can follow this example–on a much smaller scale, obviously. By reaching out to the right solutions and choosing options that fit your financial requirements, you can quickly start making money with your next paycheck. Just make sure that you assess each investment model and learn its risks, so you don’t set out on a losing battle right.

Categories: Finance