So, you got your hands on a bit of money and want to grow it. Either you’ve heard about inflation devaluing money, want to have more money for the future, or it just seems fun; for whatever reason, you want to start investing. But where to start?
Generally speaking, money made from investing in real estate is made in two ways:
1. The value of the property goes up from the time that you buy to the time that you sell
2. Tenants living in the property pay you rent
Investing is by far one of the best ways to build wealth.
It’s fun! I don’t know about you, but the idea of leveraging a resource for profit seems really appealing to me. I would much rather have money work for me than the other way around.
Typically, the higher the risk, the higher the potential reward. You could keep your money in the bank and have it earn 0.5% every year almost guaranteed. OR, you could put your money in the stock market to potentially earn 10% every year with the risk that you could lose money.
Just like with most things in life, there are no guarantees with investing. With any investment, there is the chance that it will go bust and you will never again see the money you put into it. But, the more risk you choose to take on, the more potential there is for greater reward.