Recently I opened a Webull trading account and started playing around in the stock market. It has been less than 3 weeks and I have increased my investment by 30%. Part of that is because the overall market is up and part of it is because I guessed and purchased an undervalued stock that is going through the roof right now. The exercise has got me thinking about other investments one could make and that is the inspiration behind today's post.
I chose the amount of $2000 because it is a sum of money that a lot of people can easily raise, especially with a potential new round of stimulus checks. It is also a number that lends itself to smaller investments and not enough for a larger investment such as a home.
I also want to think outside the box. When most people think of investments, they picture the stock market and I want to go beyond that. Yes, it is one option but what other options exist. I doubt I will create an exhaustive list but it should give you some ideas of what will work for you. You may even come up with some better ideas on your own.
The Stock Market - Yes you could do as I have done and invest in the stock market. The problem is that there are thousands of stocks to choose from. What do you invest in? Many investment advisors suggest companies whose brands you use. This is why a lot of people invest in Apple (APPL) and have done quite well over the past years. I saw the run on toilet paper since COVID-19 began and invested in a toilet paper company. Unfortunately that stock has lost value for me. It is only down $2.50 and so I am not too concerned, but it does highlight the fact that you can lose money in the stock market. Let's look at some other ideas that many will find more appealing.
Invest in Yourself - A long time ago I used to work for Oracle Corporation. I had a fair number of shares of stock in them (ORCL) and sold that stock to pay for my college education as I received the stock while I was in high school. I don't regret that choice at all. You could do the same thing with the suggested $2000 and invest it in your own personal learning. It won't come close to paying for a college degree but it may allow you to take the continuing education course that gets you that better paying job. Perhaps there is a skill that you want to learn simply to improve your own quality of life. While it may not reward you monetarily, it will pay you back in other ways.
This brings up investing in your self image. You have to be careful with this one as some people tend to go overboard but it is something to consider. If you work in an office where people dress up, it makes sense to invest in nice clothes. Perhaps your teeth are a bit crooked and you are very self conscious about it. Just be sure that the investment you are making will truly pay you back in some form. Don't use it as an excuse to buy something you don't really need.
I think you are the first area you should look at before other investment opportunities. If you are satisfied with who you are and what you have become, then you can look at other investments.
Invest in Tools - Before you can build a house, you better own a hammer. Not everyone wants to go into construction and there are other tools you may need for your interests. If you want to become a YouTube star, you might need a camera or a computer. You might even be able to get started with a good smartphone. $2000 is a start to help you get going. Just be forewarned that YouTube sensations don't happen overnight and it may be a year or more before you see any repayment of that investment. This is where my 30% in 3 weeks starts to look good.
There are plenty of other examples of purchasing tools that will help you earn money. Right now there are several car manufacturers that are offering 0% loans on new cars. $2000 would be a great down payment that could get you a rental car that you can make available on Turo. I skied with a guy who has a small fleet of Hondas and renting them on Turo is his full-time job. Perhaps you don't like the idea of letting someone drive your car and you dream of becoming a Lyft or Uber driver. A new car would definitely help out especially since both companies have minimum standards for the quality of cars they allow you to drive.
I'm sure there are plenty of other examples of tools purchases but I don't want to go on too long and will leave other ideas up to you.
Hopefully this has given you some new ideas on what to do with your investment money. Just remember that an investment takes time to mature. Stocks may be down or your YouTube channel may not have the 1000 subscribers to allow you to monetize your content. Hold tight, keep at it, and don't panic. Remember that investment money should not be needed for a year or two. If it is needed before then, don't invest it.
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