A lot of people believe that creating wealth is all about generating income. Well, they’re wrong. Wealth is not only about generating income but managing it as well. For some, money management means simply sticking to a budget. So, you may be surprised to know that your spending habits aren’t the only thing putting your money at risk. Saving your money can be just as detrimental to your wealth creation dreams if you don’t do it properly. When it comes to money management, one of the biggest mistakes that people suffer from is holding on to cash. Here’s the truth, cash is worth nothing. The USD constantly is losing value. Therefore, if you’re keeping straight cash, your money is losing value by the second.
The key to accumulating wealth is to continue to build value, not lose it. Where you store your money is an extremely important aspect of wealth management. There are several places in which you can save your money and increase its value at the same time. Want to know a little secret that a lot of wealth creators won’t share with you? Check out the top 3 places you should invest your money in 2021.
Invest in Bitcoin
Bitcoin and other cryptocurrency is hands down the best place to store your money in 2021. With the mega shift to crypto that the world is currently seeing, investing in bitcoin will drastically grow the value of your hard-earned dollar. For instance, if you had simply invested $100 in bitcoin at the start of this year, the value of that investment would currently be sitting at about $160. That’s a 60% return even after considering the adjusted inflation rate. Also, keep in mind this is just in a few months. People have seen their returns increase hundreds of percent with long-term investment in bitcoin. Certainly not bad, given the financial crisis many Americans are currently facing.
Invest in Stocks
So maybe you aren’t up to par on the cryptocurrency opportunities. I would highly recommend you make efforts to learn it. However, if you need somewhere to store your money now. The stock market is another great place to help your money build and retain value. Yes, investing in the stock market has its own risk, just like any other investment. However, if you do the homework and find the right stocks, it can be incredibly lucrative and protect your money from losing value. My advice here is don’t spread yourself too thin in the stock market. Especially as a beginner. Find one or two solid stocks and go all in! This is how the big ballers play the game and is why we are incredibly successful. Don’t fall for the trap of investing in something simply because you like to utilize the business or your stockbroker told you so. Really get in there and do the research. This is how you will see returns and help your money build value. On average, the annual rate of return on stocks is about 10% and has been for nearly the last century.
High Yield Savings Account
So you have no clue where or how to invest and just need a quick store away for your money? A High Yield Savings account can also be an option. While these accounts won’t generate high returns (the national average is .1% interest), this option is still much better than keeping cash. While the national average is low, there are some High Yield savings accounts that will generate between 2% all the way up to 7% APY. Even though it’s not a great return, it will still help to preserve the value of your dollar because your money will continuously build interest. This will help to combat inflation which is currently sitting at about 1.8% per year. This certainly wouldn’t be my first choice, but if you can find one that’s offering that 2-7% range, go for it.
Don’t be a fool and harbor cash for a rainy day. Fight inflation and continue to generate monetary value by choosing the right place to hold your money. So, take advice from a real wealth creator, INVEST YOUR MONEY! Then you can become a wealth-creation machine too.