Money is one of the most critical resources globally, so you should prioritize its proper management for long-term success. If you currently have a full-time job, it’s the best time to save until you have enough to invest. PT Unified Jakarta Review states that having correct investments could pave the way to long-term financial stability.
Fortunately, you don’t need to start with thousands because you can start small. However, you should only invest an amount that you can afford to lose. All kinds of investments have a wide range of risks, so you should research the different options and choose the most appropriate one.
Here are some of the best investments to start in 2021:
1. Real estate property rentals
After the 2020 pandemic hit, mortgage rates are at an all-time low. It’s the perfect opportunity to invest in properties for rentals, especially if you’re capable of managing them yourself. You have the choice to either finance the endeavor or buy it with cash for a lower cost and higher profit.
Risk: You may overpay for your property, so ensure that you have it evaluated and check the market for its price over the years.
Liquidity: This kind of investment leaves very little room for liquidity since you have to invest your money in maintenance and upkeep.
Long-term potential: Real estate has high long-term potential because property value increases over time. If you manage all of your properties well, you will have a robust passive income upon retirement.
2. Money Market Account
This investment is arguably one of the best options for beginning investors that want to set up an emergency or savings fund and build up cash flow. A money market account is a kind of deposit account that often earns higher interest than savings accounts because they require a higher minimum maintaining balance. Federal Deposit Insurance Corporation (FDIC) insures these accounts, and they’re a good option for your long-term savings. However, PT Unified Jakarta Review reveals that the downside is limited access to your account in exchange for higher interest earnings.
Risk: The main threat to this investment is the inflation rate because if you are earning a lower percentage than the inflation rate, you could diminish your purchasing power. You may also lose your money if you don’t do your research beforehand.Although most money market accounts are FDIC-insured, you might lose some or all of your principal if you place your fund in an uninsured company.
Liquidity: Most of the money marketing accounts available are liquid because you can opt to write checks using that account. However, there’s a limit to withdrawals per statement cycle, so you should check the terms before putting your money in.
Long-term potential: This is a starter investment. After a few years, you can diversify your portfolio and put money into other assets.
The general advice is to ensure that you keep your money within the maximum insurable amount usually set at $250,000.
Financial institutions like PT Unified Jakarta Review the best ways to exponentially grow your money. It would be best if you made decisions on whether you want to prioritize short-term or long-term gains. You can share your objectives with a reliable, professional financial adviser to align your finances with your goals.