6 Financial Activity Alternatives If Trading Is Not For You

Trading

The idea of trading may seem exciting and tempting. However, many realise it’s not for them after a couple of weeks or months of trying it out. Since trading foreign exchange has become convenient and easy today, many young people dive into the market without understanding how it works.

Aside from forex, many are also learning how to trade shares because some say it’s better than acquiring long-term stocks. But even though it may also seem uncomplicated, many people who have tried it still struggle to make a profit because they don’t have the heart to learn, explore, and understand the markets. 

If you relate to that, you shouldn’t feel bad and think there’s no longer a financial activity or method that would work for you. If you feel that way, keep reading because here’s a list of other financial activity alternatives you can try if trading is not for you.

1 – Starting a high-yield savings account.

Saving money is the typical advice of many people to kids and teenagers. As you grow up, you’ll hear other adults say that leaving your money in a savings account is one of the ways you lose it. Though that’s true for many traditional and old banks, many digital banks now offer high-yield savings accounts.

If you are a young adult who just started earning money and don’t know where to put your extra funds, I recommend starting a high-yield savings account first. Many high-yield banks today offer up to 4 to 6% interest on your average daily balance as long as you grow your savings monthly. The interest you’ll earn is almost similar to ‌other financial investments when you increase and keep your money in a high-yield savings account.

2 – Invest in a mutual fund.

Aside from savings, you can also invest in a mutual fund. Today, many traditional banks and insurance companies offer investments in mutual funds. CNBC says that mutual funds work by pooling money from investors that the bank uses to purchase stocks, bonds, and securities.

Usually, banks or insurance companies would invest the mutual funds in a collection of companies, which makes it an investment option that offers lower risk to investors. One of the reasons it’s becoming popular today is because once a mutual fund earns capital gains, the bank or insurance company will pass on the profit to its investors. Some mutual fund investments allow investors to withdraw their gains quarterly or annually after they yield.

3 – Start an insurance policy.

Another financial activity you can try is to start an insurance policy. For many, talking about insurance is a sensitive case because it usually involves visualising death. But today, other insurance policies focus on building an education or investment fund for you and your family.

Many insurance policies today focus on building an individual’s retirement plans, savings, health, and VULs for interest earnings. The great thing about insurance policies is you can start yours at a premium rate that works with your budget, like many mutual fund investments today. You can learn about the various insurance policies that align with your plans.

4 – Investing in real estate.

One of the best investments many financial advisers recommend to their clients is to invest in real estate. It’s no secret that buying real estate is one of the most expensive purchases a person could make. And since the value of money decreases due to inflation, we can only expect the value of real estate to increase in the coming years.

If you can buy real estate properties, consider it your financial investment. There are many condominium properties you can start buying now. Like cars, you can find many condominium properties that offer affordable deposit rates and monthly payments that suit your budget. The great thing about real estate is you can rent it out, which helps you pay your monthly in a lighter way.

5 – Investing in real gold.

If buying a real estate property is too expensive, you can invest in real gold instead. Investopedia defines gold as a tangible inflation hedge, a liquid asset, and a long-term store of value. Many also consider gold as a strong competitor to stocks. 

The great thing about buying gold is you can liquidate it smoothly. When buying gold, I recommend buying in grams because that’s where pawnshops base the value of your gold. Also, avoid investing in low-karat jewellery. Instead, buy gold in 18 to 24karat for better value returns.

6 – Invest in art and collectables.

Last but not least, invest in art and collectables. When you visit a museum or art exhibit, you’ll often find that the display pieces are worth hundreds to millions of dollars. Most art pieces have historical worth, while others develop worth over time.

Aside from art pieces, investing in collectables such as luxury items from high-end brands like Chanel and Hermes is a significant investment, too. Why? Because buying bags from their physical store is not a walk in the park. You must make several purchases before they prioritise you and offer an available bag. The same applies to buying luxury timepieces. If you can afford to invest in brands like Rolex, Omega, Patek Philippe, Audemars Piguet, and the like, do so. After all, these timepiece brands age like wine in value and rarity.

Choose an investment type or financial activity that works for you, not because it’s popular.

Choosing an investment may be challenging, especially if you’re just starting. Here’s a tip. Choose an investment type that works for you. Avoid wasting money on things you don’t understand because everyone’s doing it. That way, growing your money and earning profits will be easier. 

Written by Bianca Banda

Leave a Reply

Your email address will not be published. Required fields are marked *