The onslaught of the COVID-19 pandemic, along with other determining factors, has made investing in the stock market confusing for many first-time investors. Due to dips caused by shifts in the economy, people are worried about losing more of their investments and decide to sell their units rather than holding on until the graphs illustrate a bull. For those with a higher risk profile, trading might even be seen as a form of gambling away their hard-earned money.
Fortunately, you can grow your net worth in other ways apart from investing. Although one of the main reasons that convince people to invest is to protect themselves from inflation, there are means you can do so without being involved in the stock market. Here are three ways you can stay asset-rich without the same level of risk:
Get Involved In Business
Look into investing in businesses that stem from your idea or that of others. For instance, you can put the money you will invest as capital for a franchise for in-home care instead. A benefit of becoming a business owner in this industry is that there is a current need that you can meet, no matter your location.
It will be a service you can provide to those at any age for whatever illness you are equipped for. You will become an employer of healthcare professionals and those willing to be part of a vocational institution that cares for their community.
Even though there are risks when you invest in a business, you will still have control over various factors that contribute to its success, unlike stocks where you have no choice but to accept the resulting behavior of the economy you put money into. You can decide on marketing strategies and work on ways to keep your cash flow positive. It may not be how you can make your money work for you, but you can be your boss and dictate your hours.
By putting your money up as capital, you put your trust into a venture that you believe can generate an income no matter what happens in the stock market. You might have to put in the work but, eventually, it can become an idea that will be managed by your employees. As a result, you will contribute to your community by creating jobs and providing a staple service.
Property is an asset that is likely to increase in value over time. As the world becomes more populated, the land is a scarce resource. This makes real estate a secure investment that you can benefit from in the long run. There are mark-ups in the overall value of a property when there are developments nearby or on the location itself.
For example, an agricultural piece of land can generate your income when you farm on it. If there was no road access when you purchased it, its value could grow significantly once a cemented road is established near your plot.
Furthermore, when the land is converted into a commercial or residential area, its worth is increased. This is due to the likelihood that the location will be developed into a more populated area. Private companies or the government will be interested in making an offer, or you can have a development plan set in place so that you can reap more profits in the long run. Either way, you will have a definite return on your investment.
Since the price of precious metals fluctuates over time, they are tangible investments you can make instead of the stock market. The value of gold, silver, platinum, and other metals depends on their scarcity. Unfortunately, this might give you just as much control over their value as you will have when you invest in stocks. On the bright side, you will have evidence of your investment compared to hesitations in trading on your phone or other devices.
It is understandable for people to be hesitant when it comes to the stock market. After all, it is something that can be difficult to understand. Instead, investors can increase their assets through a stake in a successful business, ownership of the real estate, or even a precious metal that can be sold for a higher value in the future once it becomes a scarce resource.
Whichever you decide on, the important thing is that you are making yourself more financially secure rather than spending on unnecessary purchases. As a result, you will be more prepared for your future needs.