Becoming a millionaire these days is far easier than ever before. Now making a million dollars is not going to take you a lifetime; Some people will even be able to make a million dollars in the span of just a few years. It is because of all the new investments that people are making that turn them into self-made millionaires.
So, what are some of the ideal investments for the new age millionaire? Great question because there are actually a few that you may not know much about. Being that you are probably excited to see what the future holds for you, let’s dive right into it.
Real Estate Investments
Investing in real estate is no secret. People have been doing this for years, however, until recently people didn’t realize how much could be made. Take this scenario as an example; If you buy a house for $100,000 (very modest, I know) on a 30 year mortgage and rent it out for $100 more per month than your mortgage even is, then you will make $36,000 in pure cash flow. That doesn’t include what happens to your net worth as your tenant is paying down your mortgage. Because you had a renter in your property you would have increased your net worth by at least $100,000 but odds are that the property would have gone up in value and it could be worth as much as $250,000. Doesn’t that sound like a great deal?
This is why the new age millionaire needs to take part in real estate investments. Don’t think that saving money alone is going to get you where you want to be.
Growth Stocks
The stock market has made many millionaires and it is probably second only to real estate. The benefit of the stock market is that you can make trades on your own through an online stock brokerage account and you don’t have to pay a high priced stock broker either. This is why you should invest in the stock market.
Now, you should only invest in good growth stocks as they will be the ones that continue to increase your net worth and turn you into a millionaire. A lot of people think the stock market is scary and it is if you invest in the wrong stock. Take the recent Facebook IPO for example, if you bought into Facebook because of all the hype, then you would have quickly realized that they were over appraised and were not worth the initial price. However, if you take this money that you waste on speculative stocks and put it into a good growth stock, then you can easily make money on long term gains.
Peer To Peer Lending
Peer to peer lending is something rather new and a lot of the older millionaires have not yet picked up on this. Peer to peer lending is simply where you lend money to another person and they make payments back to you each month. The reason why this is better than putting your money in a bank is because, unlike a bank, peer to peer lending sites give you the interest on top of the principal being paid. This is much better than a bank because you won’t get a measly little 1% interest rate (you’re luck if you even get that), instead, you will earn between 6-15% on the money you lend. Doesn’t that sound like a better investment?
The trick to peer to peer lending as well as any other investment is to diversify your portfolio. This is especially important since you are lending money to people you really don’t know. However, it is important to note that this is essentially the same thing as the stock market because you are lending money to the company in return for one of the company’s shares and if for some reason the company goes under, then you are out your investment. Just know that investing is never a sure thing and you can always lose, that is why you must diversify your investments as much as possible in order to decrease your risk while increasing your profits.
As you can see, these are three things that will work to make you a new age millionaire, however, you should learn more about them first before jumping straight into them. A lot of people would love to be a millionaire and you will get there too, just take your time and make sure each investment that you have is worth the risk.
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