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Most business owners look forward to the day when they can retire in comfort. However, in order to enjoy a comfortable future, you must invest your money wisely today.
Investing is another source of income as well as an additional layer of security for your retirement. Additionally, it helps to increase your wealth and make your financial goals a little more realistic.
The new year is certainly in full swing, so what better time to start finally investing your money and seeing long-term growth and prosperity. At the very least, 2020 brings the opportunity to look at how well any existing investments have performed and decide where to invest your money next.
Below we list some suggestions for where to invest your money in 2020.
Invest Your Money in Real Estate
One thing that’s for certain is that as long as there are people, there will always be a demand for real estate. While real estate prices fluctuate, many people are still investing their money in real estate. Buying and owning real estate is an exciting investment strategy that can be both satisfying and profitable.
The key is looking for the right markets where it will be best for you to invest your money. There are some that will always be in demand. However, if you are looking for something that is going to give you a large return quickly, consider investing your money in emerging cities such as Budapest or Sheffield.
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If you’re needing some inspiration to get started with investing your money in real estate, just take a look at the likes of Mark Pears, who has an estimated net worth of £3.245bn.
Pears is considered one of the top real estate investors in the UK. To say the least, he has an extensive property portfolio. The William Pears Group is the latest major private property investor in the social housing market.
Stock Markets Offer Good Investments
The past 12 months have demonstrated a bright future for stock markets. What’s more, the stock market remains the best way to invest your money for building your long-term wealth.
So whether you’re new to the stock market, thinking of getting back in, or just want a refresher on why to invest in stocks, there’s no shortage of opportunities waiting for you.
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If you invest your money in the stock markets correctly, statistics show that you can grow the money you invest by anywhere from 7% to 10% per year over the long term.
To give just one example, a successful stock market investor you might have heard of is George Soros. Soros is commonly known as the man who “broke the Bank of England.”
He earned this reputation when, in September 1992, he risked $10 billion on a single trade in which he bet against the British Pound. The risk ended well for Soros. In a single day he made more than $1 billion. Moreover, throughout his career he has been responsible for numerous impressive investments.
Consider Investing Your Money in Start-Ups
It’s easy to overlook the opportunities that arise from investing your money with certain small start-up companies.
Venture capital is an ideal financing structure for start-ups, many of which need capital in order to flourish. These companies will most likely serve time in the red zone. However, some of them will become profitable companies. In fact, global companies such as Amazon, Facebook, and Google were once venture-backed start-ups.
The great thing about investing in start-ups is the vast opportunities that come with them. Tej Kohli, a UK-based entrepreneur, says investing your money in start-ups is like being a kid in a candy store. He thus has plans to turbocharge Britain’s start-up scene.
Kohli has so far spent around £40m backing British technology firms such as Open Bionics and the machine learning start-up Seldon. Moreover, he is already reaping the benefits.
Invest Your Time and Your Money in Yourself
It sounds cliché, but really, there’s no better investment than to invest your money and your time in yourself. Whether you’re investing in your career, your health, or perhaps managing your debts, investing in yourself is always a good way to go.
Mental health no longer carries a stigma, for example, and the opportunities to invest in mindfulness are endless. Whether you take a yoga class, attend therapy, or simply join a gym, your investments in yourself will ensure that you reach your optimum output level at work as well as in your personal life.
A Final Note
To reach your long-term goals, investing your money and your time is proven to be the way forward. While cash savings can be hugely affected by inflation, the stock market, the real estate industry, and opportunities to invest in start-ups tend to have smaller risks attached to them in the long run. These areas are where investing your money can give you greater returns on your investments.
It might be a good idea to discuss with a financial adviser how and where you should be investing your money. Then you can more confidently start building a more comfortable and secure future this very day.
For more tips and inspiration to help you run your business, be sure to browse our blog frequently.