There is plenty of investment assets to invest in that can make you money. Our grandparent’s generation preaches investing in real estate. For our parent’s generation, it was stocks and a little bit of real estate. For our generation, everyone is talking about stocks and crypto. While investing in real estate does still make you money, it may not be the ideal way to grow your money as fast. These are the widely common investment assets people have been buying, however, there is plenty of other investment that can make you money as well such as commodities, rare antique, or even Pokémon cards.
So what should I invest my money in? How to choose the right type of investment asset for myself? In this blog, we will find out all this and at the end of this blog, you will learn that there is more to investment than stock, real estate, or crypto.
Well, the best investment right now if you are just starting out is yourself. Get started by reading books, watching videos, and learning from others about their investment. From the hours of research, picked the investment you believe best suits your style. Don’t be bothered by what other people say about their investment or their next big thing. Learn to invest in yourself first before investing in others. Get knowledgeable, and make decisions based on your judgment, that way your financial choices will be based on you and not others.
One of our HustleVenture’s Co-founder, Edmund. Does not have a college degree but is able to work hard and earn a decent income. However, he was able to build multiple sources of income which at the age of 24, allow Edmund to save and invest over $100,000.
The investment is always preached by our parents and grandparents. Buy a home. While many till today believe that just owning a piece of real estate classified them as an asset. It is not. An asset is an investment that brings in money. Rental revenue, appreciation, and earnings created by commercial operations that rely on the property are all sources of profit for real estate investors. As long as you are paying off the mortgage without having a positive cash flow from the property. It is a liability.
To invest and build investment assets in Singapore’s real estate market is way harder than before. There have been multiple concerns regarding Singapore’s aging population and tighter manpower policies are secular headwinds for Singapore property. An increase in property prices outpacing salary growth and maybe unsustainable long term. Not only that, Singapore has higher taxation for owning more than 1 real estate called ABSD (Additional buyer stamp duty), the tax is currently at 15% for the second property, and 25% for the third property. Leaving many Singaporean to flock to other asset classes with better positive cash flow.
That does not mean that Singapore properties are still not good investments. As most real estate investors will tell you, buying real estate is a hedge against inflation. Over the past few years, Singapore’s real estate prices have skyrocketed by 10.6% in 2021 due to the Covid lockdown and the low supply of real estate in Singapore.
Stocks are a great way for most investors to start building investment assets as it has low demand for entry. There are multiple types of stocks to invest depending on your risk appetite. To get a quick understanding of how stock works, we need you to know the basic types of stock that are out there. A stock is a share of the company that you can buy from a broker. The stock allows investors to participate in the gains and losses of the company.
An ETF ( Exchange-traded fund) is a basket of stock that tracks a certain sector in the market such as tech, dividend, growth, healthcare, and so on. They are an excellent way to start investing due to their low prices and provide a lesser risk of volatility (price movements of the stock) by having a well-diversified portfolio.
An index fund is a go-to for all investors. An index fund tracks the overall return of a basket of companies, the S&P500 is the US 500 largest company, and the overall return per annual is 10.6%. It is proven time and time again that 90% of investors do not beat the index fund.
Ways to Get Started in Stock Investing
It is easier to start investing in stock than ever. With the rise of Robo-advisors and mobile stock brokerage. It is easy to buy and sell stocks with a click of a button. These apps provide a good referral bonus that everyone should take!
You can click here to find out more and product reviews about the types of brokerage apps that we used to buy our stocks.
Crypto has start started becoming widely popular, especially among the younger generation. That’s because of how online payment services and digital art collection called NFT (Non-fungible tokens) have become widely popular. Understanding Crypto
Rules in Building your Investment Assets
Before you start investing any of your dollars into an asset. It is important to take the time to study and understand where to grow your money. And know that the best asset is not monetary value, it’s time. Time in the market beats timing the market. Invest in for the long term. Learn to build your financial freedom so that you have all the time in the rest of your life to enjoy.