Looking for a smart way to spend your lottery winnings or structured settlement agreement? Make your money work for you by investing it.
When we think of “investments,” we tend to think only about playing the stock market, which can be a risky business if you don’t know what you’re doing. But making an investment simply means that you’re going to put your effort or money into something now with the expectation that it will grow and provide you with even more money than you started with some time in the future.
There are different ways to invest your money besides stock markets or savings accounts. Here’re just three big ones to think about:
- Business Investments:Maybe you’ve always dreamed of starting your own company, bakeshop, or service, but have never had the funds to set it up. Starting your own business is expensive — on average, $30,000 expensive, according to the Kauffmann Foundation. But if you have the right idea and the right tools, it can provide a wealth of future fulfillment.
If you’re not the self-starting type, though, you can still have a hand in future businesses by becoming a financial partner in a start-up or offering peer-to-peer lending services for other dreamers. Does your mom really make the world’s best meatballs? Prove it by helping her launch a new restaurant!
- Educational Investments:You’ve heard it before: An education is the best ticket to a good future. Higher education these days, however, is going to cost you a pretty penny. Private college tuition is up to an average $31,000 per year while in-state tuition at public universities costs around $9,000. When considering different ways to invest your money, this may be the most important for you or your child. A college education helps to ensure not only that you’ll secure a good job, but that you’ll find the best ways to put your skills and talents to use in the world.
- Pay Off Debt:Paying off your student or credit card debt might sound like more of a chore than an investment, but it truly is a way to save yourself money down the line. If you’re paying interest on outstanding debt — and the average household has about $129,579 worth of it, over $15,000 of which comes from credit cards alone — then you’ll be much better off paying as much as possible now to avoid continuously increasing interest rates that never seem to go away. Think of all the extra money you’ll have once all that debt is put to rest!
You don’t have to be a Wall Street wizard to make a smart investment. Personal betterment might be the best of all the different ways to invest your money. With it, you’ll secure yourself a bright and happy future — along with all the financial benefits!