Have you wondered where millionaires store all their money? There is no doubt that a percentage of your income you must keep to be able to grow financially and buy more assets.
Store your money safe during a shaky market. How?
There are a couple of ways to safely store your money, but physically storing them is not a good idea.
This can be a very bad idea for two main reasons. First of all, if you keep your money in your basement your money will lose value due to inflation. The inflation rates are over 2% and are getting higher and higher which means your money will start to lose more and more value.
There isn’t any good reason really to keep your money at home. Most billionaires keep only 1% of their money in liquid form. They always make sure that their money doesn’t stay still and they are moving. This concept is known as cash flow.
Keep in mind that money is useless if you don’t use them. If you are looking to grow you should keep your money moving.
You need to find a way to make your money work for you. What does this mean? This means that without too much effort your money is multiplying because you invested smartly invested there are a couple of ways you can do this.
You could invest in stocks for the long term, or in a business that can run without your help.
Becoming an investor in a business sounds attractive because you can make a lot of money in a short time. This can be very risky, but also very rewarding. Make deep research before investing your money in someone’s business.
Here are some great ways to store your money safely during a shaky market:
When online banking first started operating nobody trusted them. People even didn’t know how to use them.
Today when everything is becoming more and more digital, especially with the pandemic, online banking started to have more and more power.
Always make research before choosing your online bank. A good choice would be some bank that has been on the market for a long time. Don’t choose a bank that was opened a month ago, or you can end up losing all of your money.
The reason that these banks are better than the traditional ones is that they offer more services and higher interest rates. This is because they don’t have traditional costs, like rent, etc.
Diversified dividend investing portfolio
This is slightly riskier than a saving account but it can bring you more money. Usually, the return is between 2 to 10%.
Buying stocks is like being a part of a company. You participate by giving them money and they give you a percentage of the profit of that company. This is called a dividend. If a company doesn’t make a profit means that you can lose your money.
This is why you need to diversify your portfolio. Don’t invest all of your money in the same company. This way you have a low risk to lose your money. When investing look for companies that have been a long time in the market. Google and Microsoft are nice examples.
This is similar to the previous one but is useful for those who don’t want to learn about stocks. Blended portfolios also contain bonds and stocks, but they are designed with a low-risk strategy. Solutions like Betterment and Wealth front can help you choose a plan.
You write your goals, for example, fast income and they will create a plan for you similar to this one: 80% bonds and 20% stocks.
Real estate is not a liquid way to store your money. When storing your money in real estate is more difficult to pull off your money. Usually when buying real estate is for the long term. Although you can flip it and earn money short term. When we talk short-term in real estate we think for three months.
Real estate is one of the best ways to increase your wealth, but keep in mind that if you invest money in real estate it takes longer to take your money out.
Over 90% of millionaires invest in real estate. This shows that investing in real estate is by far the safest way for storing your money because the value of your property will only gain value.
It is highly unlikely that a house will lose its value. Additionally, you can rent your properties and earn an additional monthly income.
Also read: How to Profit form the 2022 Recession