It is not too late to start planning for your financial wellness this year. In this article, we will examine the top 10 financial wellness investments you may consider making this year.
1. Real estate
Shelter is one of the basic needs for everyone. This means that man will always be in search of shelter and a place they can call “home”. Apart from shelter, man has a need of lands and landed property for various reasons. This is what has made real estate investment a very attractive option to investors for many years.
Even with the current high interest rates, you can still generate a steady stream of income for yourself through rental properties, but you can consider that interest rates are not likely to remain high forever.
Try finding properties in growing communities that are currently undervalued, this may prove to be a rewarding experience in some months or years. You should also study trends and patterns in the real estate market. This has a huge potential to improve your financial wellness.
2. Stocks
Investing in stocks has the potential to bring high return on investment, but could a greater level of risk than real estate investment. This is due to the historically volatile nature of stocks.
In order to reduce risks, it is important to have a diversified portfolio across growth stocks, international stocks and blue-chip stocks or in purchasing index funds.
Growth stocks are the stock of companies that investors expect to grow faster than the overall stock market. International stocks are stocks of companies in other countries. Blue-chip stocks are the stocks of big and well established companies with a strong market capital, good and relevant products or service and loyal customers. Index funds are a portfolio of different stocks in a bucket, so you are never investing in just one company and one potential risk.
3. Bonds
Bonds are a more stable form of investment and a potentially great source of financial wellness. They usually do not have high returns on investment but also do not usually pose a high risk of loss. So, of you are a conservative investor that does not want to take huge risks, bonds may just be the right option for you. Adding bonds to your investment portfolio gives it more stability.
A good rule to follow in investing in bonds is to look for high-grade corporate bonds and municipal bonds, as they are more likely to be steady. Where the bids are issued by companies with strong credit ratings, they are called high-grade corporate bonds while municipal bonds are those that are issued by local governments.
4. Cryptocurrency
Cryptocurrency is a relatively new investment option that has been gaining popularity in recent years. Bitcoin and Ethereum are some of the most well-known cryptocurrencies, but there are many others to consider.
Investing in cryptocurrency can be quite risky and as such, can produce stress as the value of these digital assets can be highly volatile. However, it also has the potential for high returns. Before investing in cryptocurrency, it is important to do your own research and consult with a financial advisor.
5. Mutual Funds
Mutual funds are a great way to invest in a diverse range of stocks, bonds, and other securities. They are managed by professional money managers who invest in a variety of securities to diversify the fund’s holdings. Look for funds with a good track record and low fees.
Additionally, research the fund’s historical performance, portfolio composition, and the fund manager’s investment strategy to make an informed decision.
6. Exchange-Traded Funds (ETFs)
ETFs are similar to mutual funds, but they are traded on stock exchanges like individual stocks. They offer the same diversification benefits as mutual funds and are often cheaper.
ETFs track an index or a basket of securities, and they can be bought and sold throughout the trading day. They are a great way to invest in a specific sector or market, such as technology, healthcare, or emerging markets.
7. Commodities
Commodities such as gold, silver, and oil can provide a hedge against inflation and act as a safe haven during times of economic uncertainty. They can be an effective way to diversify your portfolio and protect your investments from market fluctuations.
Additionally, commodities prices tend to be less correlated to the stock market, which can help to reduce overall portfolio risk. They can be bought in physical form, such as coins or bars, or through an ETF or mutual fund that invests in precious metals.
8. Startup Investing
Investing in startups can be risky, but it also has the potential for high returns. Startups are companies that are in their early stages of development and typically have a high growth potential.
Look for startups in industries that are poised for growth, such as technology, clean energy, or biotechnology. These industries are expected to have a strong future demand and provide potential for high returns. Additionally, consider the management team and their track record, the size of the market opportunity and the startup’s competitive position.
9. You
Yes, you.
The greatest return on investment usually comes to those who invest in themselves. Invest in your dreams and goals. You will not only stand a chance to achieve them, but you will also become a better version of yourself in the process. There is no better form of financial wellness than investing in yourself.
Investing in yourself means dedicating time, effort, and resources towards your personal growth and development. This could involve pursuing further education, learning new skills, developing healthy habits, seeking professional coaching or mentorship, or investing in your physical and mental well-being.
By investing in your dreams and goals, you are prioritizing your aspirations and committing to achieving them. This may involve setting clear, measurable goals, creating a plan of action, and holding yourself accountable to follow through. When you invest in yourself and your goals, you are demonstrating a willingness to take calculated risks, learn from failures, and adapt as necessary.
The benefits of investing in yourself are numerous. By improving your skills and knowledge, you increase your value in the job market and may be able to command higher salaries or better job opportunities. Additionally, investing in your physical and mental well-being can lead to increased energy, focus, and resilience, enabling you to tackle challenges with greater ease.
Ultimately, investing in yourself is a long-term strategy that can pay dividends throughout your life. By continually learning, growing, and pursuing your dreams and goals, you can create a fulfilling and successful life that aligns with your values and aspirations.
Final Thoughts
It is important to note that the above list is not a guarantee for investment success or financial wellness. As always, it is crucial to do your own research, consult a financial advisor and invest based on your own risk appetite and investment goals. Additionally, it is important to keep in mind that the investment landscape is constantly changing, and it is essential to stay informed about the latest trends and developments in the market.
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