Many people dream of being millionaires, achieve financial freedom and have different sources of income. However, only some are able to make their goals come true.
So, what is the difference between the people who make this dream come true and those who do not? Your vision of money. They understand that long-term types of investments are necessary and that saving money under the mattress is simply not enough.
Saving is the first step, but not the only one. Saving money to see it grow in your bank account will not help you much in the pursuit of your financial goals.
Put the money to work with these long-term types of investments:
That is why, if you have money saved and you want to start investing, in this article we will share with you 5 long-term types of investments that vary according to your risk tolerance and your investment objectives.
So define what your financial goals are, and make the right decisions to make them come true. These long-term investment ideas, without a doubt, will help you grow your wealth and build your wealth.
Remember, in the short term you can earn money, but wealth is built in the long term.
Among the long-term types of investments in the list, perhaps crowdlending is one of the most interesting.
Before explaining how you can invest your money under this modality, we will explain what it is and what it means. To begin with, the name “crowdlending” is based on two words from English: crowd and lending, which would translate respectively as a crowd and a loan.
The name is explanatory enough. It is an investment model where a person or company seeks financing through loans from several participants, with the promise of paying them in the future with interest.
Crowdlending allows investors (creditors) to invest their money and earn profits, and the debtors provide extra financing to carry out their projects.
2. Root Property: invest in Real Estate
Since the real estate market was created, capitalists saw it as an excellent way to back their money by buying properties that are very hard against devaluation. We suggest to learn before Investing in real estate business.
Not only can you invest in a flat or premises that can later be sold, but having a property of this type can generate endless ways to generate profits such as rentals, cheap franchises or even start your own business.
This type of long-term investment requires a large sum of money or capital to invest since the purchase of these properties requires investors with money availability.
In the case of real estate you can invest in two ways:
The first is to buy real estate and then resell it for a higher price. There you are gaining an appreciation of the property. For example, you buy an apartment for $ 50,000 and sell it for $ 75,000 over a period of 12 months.
To calculate your profitability you must take into account the expenses associated with the maintenance of the property, the inflation during those 12 months, the taxes that you had to pay and the cost of the transaction.
Another alternative is to invest in properties such as houses, apartments or commercial premises and then rent them and generate a monthly rent.
In this case, the initial investment does not recover so quickly, but you are generating a monthly income. Apart from that, you are earning the valuation if you decide at some future to sell.
If you do not have a lot of capital, you can associate with several people and raise an amount of money that allows them to invest in these properties. In fact, many financial institutions offer investment funds for this type of long-term investments.
3. The stock market:
This is one of the best-known investments, is more, surely you already know and still consider that this option is not for you.
This is because you may not understand very well the graphs, statistics, and metrics used by brokers and investors to evaluate their capital.
However, thanks to the rise of the internet and the globalization of capital markets. The option of investing in the stock market have become very attractive.
It is important to clarify that we are not talking about speculation. But about long-term investment strategies in companies that have growth potential.
4. Equity Crowdfunding:
Although the name “crowdfunding” is often confused with “crowdlending”, and both can meet the same objective for the one receiving the capital (since it is being financed), both mechanisms are quite different for the investor.
As already mentioned, crowdlending consists of loans made to individuals or companies in exchange for an interest; while crowdfunding is a type of investment in a project that is beginning.
That is to say, no money is being lent to finance the project. And neither is it donating, nor buying products or services in advance. As is the case with Kickstarter, but we are “buying” a stake in the company.
Crowdfunding can also receive benefits such as advances on products for a lower price, along with any other reward that the creators of the project or entrepreneurs may think, but here part of the company is being sold to a group of interested people.
This type of long-term types of investments has a good horizon, since, according to Statista, in 2018 there will be transactions worth more than 9 billion and will reach 25 billion dollars in 2022 worldwide, under the different crowdfunding models.
Finally, this idea may sound cliche, or even disappointing after considering these interesting long-term types of investments. But investing in yourself is one of the smartest decisions you can make.
Interestingly, it is also the investment that the vast majority of people forget.
While reading about long-term investments is an excellent way to start diversifying your income. And destinations for your profits, none of this will work for you if you do not know what you’re doing.
Nowadays you have access to an infinity of information through courses, books, seminars, consultancies, and events, which, thanks to the internet, are literally within a click distance. And in many cases, even for free.
In conclusion, if you take any of the other four long-term types of investments. You can have an excellent source of income to secure your capital. If you invest in yourself, you can see money where others do not.
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