Investing doesn’t have to mean stashing all of your money in the stock market. In fact there are hundreds of ways to invest. And usually the best investments are the ones you’re most knowledgeable about.
If you are having a hard time coming up with alternative investment options here are five to get you started. Do keep in mind that a couple of these are pretty high risk.
Peer to Peer Lending
If you like to help others out while also growing your bank account P2P lending could be an excellent option for you.
With peer to peer lending you can loan money to borrowers who don’t qualify for traditional bank loans. You also have the ability to spread your loan in small increments to several borrowers therefore mitigating your risk.
The returns you earn with peer to peer investing depend on which borrowers you lend to. Obviously, higher risk borrowers will be required to pay higher interest rates.
Check out our review of Lending Club, one of the most popular peer to peer lending companies.
Forex Trading is the betting on the values of one currency against another. For example, you could invest in the change between the U.S. Dollar and Euro, or a multitude of other currency pairs.
This is an active type of investment and since you can also use leverage it makes Forex trading high risk. If you want to get started with Forex you can download MetaTrader4.
Binary options work similar to Forex Trading only instead of betting on currencies you can bet on the prices of many different assets. Since leverage is also available with Binary Options this again, is high risk.
Collectibles such as guns, paintings, and even certain toys are profitable when the investor is knowledgeable about the subject.
For instance, I know a few people who invest in firearms. However, the sole reason they’re comfortable in doing this is because they know the firearms industry very, very well. If I were to go out and try to invest in something like this I’d probably lose all of my money.
Be smart with this idea and stick with what you know.
In our list of passive income ideas there were many different online business ideas that you can start and grow into passive income down the road.
While these definitely take time and patience to develop they become worth it in the long run. I personally believe that it’s never a bad idea to make smart, well thought out business investments.
Invest in Yourself
You are your biggest earner. If taking a certain class or course can increase your earning power then you need to do it.
I have taken courses before that have given me the knowledge to immediately increase my income. When done right there’s really no better investment than in yourself.
Here’s a great article about investing in the most important thing: you!
Stick With What You Know
Invest in what you know. I’m sure you’ve heard that phrase often in the investing community but it’s the truth. Just remember, investing in what you know can go far beyond the stock market!
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him here.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.