Investing your money can allow you to grow it over time.
Think about it: invest in a high-risk, high-return vehicle if you know the market will take a year to stabilize and you’ll realize some return. Why not do it now? Instead, reinvest your money to grow your portfolio. After investing in the high-risk, high-return vehicle, hold it until it makes money. The more time you put into the investment, the greater the potential return on investment. If you are unsure on how these investments work then make sure to read here.
For example, let’s say you invest $10,000 per month for six months and earn $100 per month. In a year, you could be earning $1,000 per month and you’ll be $150 ahead of where you started. You’ll see greater gains and could have invested longer.
It’s a good strategy to put money into the stock market during a downturn and then sell the stock and reinvest it during a recovery. It’s like investing in an emerging market in the early stages and holding it until it’s worth much more.
It could cost you a bit of money in the short term, but the potential payoff is huge. It could grow your assets by millions. Investing is a great way to boost your finances and grow your wealth, no matter how much you have to save.
Final Thoughts on Investing in Gold
Gold is a popular investment because it’s very easy to get a hold of and provides great returns. Investing in gold is safe, but you’ll never be able to buy more gold than what you have and never have to worry about inflation.
Many investors make mistakes when buying gold. Don’t let them do you in. Follow the six rules listed above to reduce the risk of investing in gold.
When it comes to investing in gold, stick to your plan and don’t let emotions get in the way of doing what you need to do. Put your heart into it and you’ll be surprised how much money you can get in your portfolio.
Know your risks and what to watch out for and you’ll be able to learn to effectively invest in gold and outperform.
Written by Evan Schmidt, Senior Analyst and Investment Analyst at Wells Fargo Asset Management. Evan is an avid investor who is focused on learning about investments that will help him grow his net worth.