Building Your Investment Portfolio Is Just As Important As Building Your Business
If you’re an entrepreneur, then you may very well see the businesses that you build and run as your key to a successful future. However, anyone who has made it to the top will tell you that the key to wealth is getting your money to work for your, rather than working for your money. For that reason, you need to look at putting money into investments, and which ones can work best for you. Here are a few options to consider for your portfolio.
Playing the stock market is all about investing your money by buying the shares of a company. If the value of a company goes up, your shares get more valuable. When starting small, you might be investing in the shares of individual companies but you want to eventually move on to have investments in stock funds that see your money spread out amongst stocks in various businesses so that your fortunes aren’t just tied to one.
Bonds are effectively debt that you can invest in. You buy the debt that is owed to various institutions, whether it’s the government with government bonds or corporate bonds that might be owed to banks or other lenders. The value you get back is in the interest charged on these debts. Compared to stocks, bonds tend to be a much safer investment, so people often use them for some low-risk, low-reward savings.
If you’re okay with tolerating some risk, then speculative investments can be where you can make most of your money. Cryptocurrencies have risen out of the past decade as some of the most quickly growing investments. Crypto trading isn’t always easy, you need to make sure that you’re paying attention to which platforms and coins are growing, and to make sure that you’re avoiding the scams out there. However, if you can get on the next big coin before it makes it big, you can see the kind of gains that are difficult to see in any other asset in such a short period of time.
One of the most valuable assets on the market at almost any given time, investing in property also tends to be one of the safer assets you can invest in (market crashes notwithstanding). The main barrier to entry with property is the capital that you have to raise to get onto the property market. However, there are options such as funds that allow you and several other investors to buy a property together for a manager to either rent out or sell, splitting the profits between you.
It’s always a good piece of advice to invest in what you know. If you know business, then angel investing, by investing money directly into a company for either a share of the company or for interest, can help you keep a closer eye on what your money is going. You might even be able to help other entrepreneurs grow their business with advice, too.
Which of the above should you start investing in? All of them, varying them based on how much risk you can accept. Diversity is the greatest key to success in investing.