Here are three places to put your money. The economy has been slowing, inflation is still high, and there is a sense of uncertainty gripping the nation. So, where can you put your money to work? Here are a few ideas.
Cash
Now is a great time to be a saver. The Fed has raised rates seven times so far this year. The benchmark rate is now at a 15-year high. This is bad news for people looking to purchase a home via a mortgage. It’s also a bad time to be carrying a balance on a credit card or shopping for an auto loan. But, if you have the means to set aside cash, then now is a perfect time to do so.
Current CD Rates are above 5%, and some are closer to 6%. Online savings rates aren’t far behind. After years of near-zero returns, the time is finally here when your cash will work for you. Saving cash is nearly risk-free, so you don’t have to worry about losing any of your principal investment, and in most cases your money will be federally insured.
Stocks
Stocks have been volatile. However, as a long-term investment, you can still make nice returns. The stock market has historically returned around 10% for the past century, so if you are consistently investing in quality stocks over a long period of time, then you can expect similar returns.
You can invest in ETFs, mutual funds, or individual stocks. A mix of all these is a good idea, but the point is that you can cater your portfolio to your own liking and tolerance for risk.
Real Estate
Real estate is another investment that has performed well over the long term. The market today is being squeezed by high borrowing rates and low supply, so finding deals is difficult. Many savvy investors are doing all-cash deals or simply sitting on the sidelines waiting for prices to deflate.
Buying an investment property for all cash may not be in the cards for you, but sitting out and waiting is not a bad strategy. With interest rates on savings accounts being where they are, saving cash for an eventual real estate purchase can make sense.
Wrapping Up
So, there are three places to put your money. Whether saving cash, steadily investing in stocks, or buying real estate, you can be assured that your wealth will increase over time.
Read Also:
Stacking Cash: The Best Wealth Building Books to Help You Master Your Money
What Is The Best Day Of The Month To Buy Stocks?
What You Should Know About Investing in Real Estate
5 Common Stock Investor Mistakes and How to Avoid Them
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Based in the Pittsburgh, PA area, Brian holds full-time employment as a Warehouse Manager for an electronics firm. Brian enjoys wealth building, investing, gardening and the great outdoors. Brian holds a B.A. in Environmental Studies from the University of Pittsburgh and an MBA from Robert Morris University.
