The current economic environment has created some great opportunities for investments. You can use this economic downturn for your benefit to improve your current financial situation. By making the right investments now, you can ensure yourself of a prosperous future. We often shy away from investing when the media or the “experts” tell us to be cautious. Warren Buffet has always said that you should be greedy when everyone else is conservative and conservative when everyone else is being greedy. Here are 4 great investments that you can make right now:
1. Invest in yourself.
Economic recessions are often the time that many people realize the need to pursue higher education. Finishing up your degree can help make you a more marketable candidate in the job market. You can go back to college in finish up that bachelor’s degree or start working on that master’s degree that you have been putting off. A college degree is worth it. The job market will remain tight for the foreseeable future and an undergraduate or graduate degree can give you a leg up. The average college graduate makes about $450,000 in their lifetime more than a high school grad. That’s a lot of extra change! Going back to school can open doors for you to land that new job or seal that promotion.
2. Invest in a business.
Entrepreneurship is the backbone of American capitalism. There is no better impetus for starting a business then losing your old job. Do you have years of experience that make you an expert in a particular industry? Have you always wanted to run your own company? Start today! You could start a business in just about any industry from selling computers to baking cakes and pies. While some businesses require significant amounts of money to get started, many businesses can be started with just a business plan and a little research. Who knows, you may just start the next Fortune 500 company right from your home!
3. Invest in real estate.
If you listen to the news, all you hear all about is the downtrodden housing market. While this is a negative for homeowners, it is a plus for homebuyers. This is one of the best markets for buying a home in a long time. With lots of homes on the market, you can get a sweetheart deal if you have the money and the credit. Take advantage of reasonably low interest rates by buying a home. If you have a home loan with a high interest rate, it’s also a good time to refinance. Refinancing should not be used to drain the equity out of your home but to lower your interest rate. If your interest rate is above 6%, you could easily get a lower rate with the right credit rating.
4. Invest in the stock market.
The best time to invest is during giant market selloffs. This is the time when the market finally gets cheap and presents great buying opportunities. During these troughs, you can buy some great companies at sale prices. The biggest mistake that most investors make is hesitating and not buying up shares when they are cheap. Wouldn’t you have loved to have bought shares of General Electric when they were $5? Or shares of Bank of America at $3? Strike while the iron is hot and load up on great companies when they are on sale.
(Photo credit: Casey Serin)