While everyone knows that saving money is an important aspect of a successful life, the reality of the situation is that it can be rather difficult to get a return on your investment. There are plenty of different investment vehicles to look at today, and all of them have their own lists of pros and cons. If you want to make sure that you do not end up losing everything, then it is important for you to make sure that you have money in a few different places at the same time. If someone goes wrong in one area of your investment portfolio, you need to be able to fall back on your other assets. Here are five different places where you may want to place your money today.
High Interest Savings Account
If you are just looking for a safe place to hold your money, then you will want to look at a high interest savings account to maximize earnings. When looking at different savings accounts, it is important to keep inflation in the back of your mind. While you can’t really get an amazing return from most savings accounts, you should be able to at least out pace
the yearly inflation rate. You have to take some risk if you are going to get a serious return on your money, so you will need to put your money somewhere else if you want to really see your money work for you. On the other hand, it is always important to have some money in a safe place, such as a high interest savings account.
Gold, Silver, Land and Other Commodities
In addition to a high interest savings account, you may want to also look at other safe havens for a small portion of your portfolio. Gold and silver have long been considered to be money by certain investors, and these assets still hold a lot of value when it comes to having a relatively safe portion of your portfolio. Land is another commodity that will never lose all of its value overnight, but you always need to make sure that you are not buying into a bubble.
There also needs to be some risk in your portfolio because that is where you will be able to make serious gains. Bitcoin is one of the sexiest new investments in the world today, and it is still in the early stages of becoming a global currency. Before you make an investment in bitcoin, you have to think about where the value of bitcoin is going in the near future. Some people say it is going to zero, while others say that it will be worth a few thousand dollars per bitcoin over the next few years after it starts to compete with Visa, MasterCard and PayPal. There are also people out there who think this will be the currency of the future. If that’s the case, then the value could be between $100,000 and $1,000,000 per bitcoin.
Stocks That Actually Pay Dividends
One thing that is important to remember when you are actually buying stock in a company is that it is generally a good idea to stick with stocks that pay dividends. This means that the profits are actually shared with the shareholders of the company on a regular basis. While stocks that don’t pay dividends can still earn you money when they are undervalued, the reality of the situation is that dividend paying stocks will be able to provide some money to you even when they go down in value.
One last thing to remember when it comes to where you should be keeping your money is that it is also a good idea to have some money on the sidelines. The reason that you need some cash on hand is that you need to be able to take advantage of an undervalued asset when you see it. If all of your money is tied up in investments, you will not be able to make that new investment when it matters most.