People often me, what is the best investment right now and I usually refer them to one of the greatest living investors of our time, Warren Buffet. He said once that you should be greedy when everyone else is conservative and conservative when everyone else is being greedy.
1. What is the best investment right now?
Well, it’s hard to say since the current economic environment has created some neat opportunities for potential investors. If you consider yourself an investor, you can use this economic situation for your own benefit and improve your financial situation.
It’s simple really, all you have to do is make the right investments. Sure, it may seem easy on when someone says that, but to ensure a proper future for yourself, right investment are the only way. Here are 5 awesome investment opportunities that you can make right now.
2. Invest in a real estate
If you are fond of the news, you can hear that it is all about housing market right now. And it’s not good news. While this might seem as a bad news for homeowners, it is a great opportunity for homebuyers. Actually, real estate market is probably one of the best markets right now. Since lots of homes are on the market, you can get a beautiful house for a fraction of a price if you’ve got the cash or a credit.
Also don’t forget that interest rates are relatively low right now and you should take advantage of that when buying a home.
3. Maybe you should invest in the stock market
If you ask me, I believe the best time to invest in a stock market is during the big selloffs. Selloffs are when the market gets really cheap and presents investable opportunities for you.
On the other hand, the biggest mistake investors make is that investors usually hesitate and they don’t buy the shares when they are really low.
I’m sure you are familiar with the saying “Strike while the iron is hot”. You should take advantage off these awesome opportunities and start investing.
4. Invest in… yourself?
Usually, during the worst time, we realize how much we need to pursue higher education. And that is a good thing! Having a degree will help you to make you a more marketable candidate in the job market. You should always aim to pursue higher education. It is hard out there in the real world and a degree will help you as you will make yourself more serious and presentable.
Moreover, it is known that an average college grad makes about $500,000 in their lifetime more than a high school grad. That’s a lot of money. Furthermore, going back to school can open doors that have been closed for a long, long time.
5. Are you on a tight budget?
5. 1. Debts, debts, debts
Most of you have heard about compounding. And it works in both ways, for you and against you. If you have a consumer debt, you are paying a higher rate of the interest rate on those loans that you make on the market.
Here is what you should do. You should pay off all of your short-term debts before you actually start your investing career. We’ve covered how important it is to start investing early and consistently. If you own a significant amount of money and you have some money aside ($5,000) you should pay off your debt right now.
Remember this, the most important return on your money today could be the eliminated debt in the future.
5. 2. Have you considered a savings account?
A savings account can be a good way to save the money you need in the case of an emergency. Also, it can be a good short-term investment.
Although they are the least profitable option in here with a very low-interest rate, they are highly liquid and stupid simple. They come with lots of advantages if you are a noobie in the market. Some of the advantages are very low (almost nonexistent) risk rate and ease of access.
However, most saving accounts do not keep up with the rate of inflation which is currently around 0.2% according to usinflationcalculator.com.
6. So, what is the best investment right now?
As always, when it comes to money, you should be as rational as possible. Just throwing money around won’t get you anywhere, and the market is a hard game to play.
The best thing you could do is read, read and read. All I did is I gave you some possible ideas in what you should invest. The best investment right now is of course up to you and your financial situation.