The Best Low Risk Investments
Before you can go on to make your millions, there are two key things you need to consider in order to keep more of your hard earned money. There is a reason professional athletes and lottery winners lose ALL their money within two years. They fail to understand two simple concepts.
I like to teach my students that it is possible to make money without money, although most people you know probably told you otherwise. I’m sure whenever you asked someone about investing, you were told to put your money in the stock market, and just leave it there until you are ready to retire. This is the OLD way, and that is not the way I do it. Investing is very important, and making passive income is even more important.
But even more important than passive income are these low risk investments.
Investment 1 – Debt Elimination
Not quite what you expected huh? This is probably one of the easiest ways to put some money into your pocket. Why would you be happy about making 2% per year in a CD when you are making minimum payments on a credit card that carries an annual interest rate of 19%?
The money you are paying to banks is a lot more than what the bank is paying you to keep your money locked up in a CD for 2-3 years.
Make eliminating debt a top priority and more importantly pay off those high interest rate credit cards or transfer the balances to a card with a lower interest rate.
What you save in monthly payments on credit cards you can then use to invest for passive income and lower your overall cost of living.
Investment 2 – Furthering Your Education
Another really important investment that is low risk is educating yourself. I’m sure you are well aware that the more educated people make the most money. Think Engineers, Lawyers, Doctors, Astronauts, etc.
Not everyone can be the next Peyton Manning, Tom Brady, Kobe Bryant, or Eminem. You will need knowledge on “something” if you really want to be successful in life.
In the world we live in today it is quite possible to achieve success without going to a 2yr or 4yr college. You can educate yourself on many things by learning at your own pace, and possibly getting some certifications.
Years ago, I did an internship when I was in college and I met a college dropout who was making over $150,000 per year because he studied on his own and got some IT certifications.
If you think out of the box, you will be surprised at the possibilities.
I know you were probably looking for the magic secrets to impossible wealth, well, that’s in the other article I wrote. This article is about two very basic but VERY critical investments you need to have a good foundation for wealth building.