How many different ways are you investing your money? If your answer is less than three, I would strongly advise that you diversify your investments.
Sure, you might be investing in a wide variety of mutual funds, but in reality, these are still all stock market investments and I would only count these as one way that you are investing. After all, if the market take a dive, most, if not all, of your mutual funds will be taking a dive as well.
In order to assist you in diversifying your money, take the following five investments into consideration.
1. Junk Coins
Haha, from the initial name, you might think this is a terrible investment. Who invests their money into junk? But, this term refers to coins that were typically minted prior to 1965 when they were made of 90% silver. So, instead of a quarter being worth only 25 cents, if you factor in the value of the silver in it, it’s actually worth roughly $5.
If our paper money continues to lose its value, then the value of silver will most likely go on the rise, which means that your old-school quarters will increase in a value as well. It’s a great way to have some wealth that’s physical and touchable, just in case our society completely melts down.
2. Online Real Estate
This was actually big back in the mid to late 90s when many people purchased a bunch of popular domain names, sat on them for a bit, and then sold them for 10 times their worth or more. While this was a very smart thing to do, it’s not as easy to do any more.
So, instead of just trying to flip a domain name, I would suggest buying a solid domain and then building its brand over the course of a few years. I’ve known a few people that started a website three years ago and brought its value up to over $100,000 today. For a $40 initial investment, that’s one heck of a return, and it still can be done today.
3. Physical Real Estate
I absolutely love rental properties. If you can find a deal on a house and are able to rent it out for a profit each month, not only are you earning that cash flow, but the value of the house is most likely on the rise as well (or at the very least keeping up with inflation). It’s an old-school way to make money, but it absolutely still works today.
4. Paintings and Collectibles
If you have a broad knowledge in art and collectibles, you could really clean up in this market. There have been many stories about individuals that have found a rare item at a garage sale for $5 and then turned around and sold it for hundreds of thousands of dollars in a matter of weeks. If you have this talent, go out and develop it. There is a lot of money to be made in this category.
5. Foreign Currency
There aren’t too many people out there that know about currency trading, but if you have a knack for knowing when currencies are going to rise and fall, then you might be able to clean up by trading currencies.