Financially responsible people know that if you want to have a safe and comfortable future, you need to make some smart investments. Even if the economy seems stable at the moment, that can change easily and if you’re not prepared for it, you will be left with little to no income.
But with so many different investment opportunities, it’s hard to decide which one is worth the money and which one is likely to flop. That is why we made a list of the best investment opportunities in 2021 so you can be sure you’re investing your money wisely.
Cryptocurrency
Unless you live on a desert island, you’ve undoubtedly heard of Bitcoin (BTC), Ether (ETH), and other cryptocurrencies. Numerous people have already invested in digital currencies and made a lot of money, some even managed to become millionaires.
The market size for cryptocurrency will reach $1087.7 million by 2026 and if you haven’t gotten into this type of investment, it’s better to do it later than not at all. Invest in cryptocurrency through eToro or Coinbase which are both user-friendly especially for crypto beginners. They also offer trading for major cryptocurrencies like Bitcoin and Ethereum from these platforms.
The blockchain technology that underlies all cryptocurrencies can be a real game-changer for multiple industries. This potential along with a currency that is reliable and has a long-term store of value is very attractive to people who have high hopes for the future of digital currencies.
However, it’s important to note that cryptocurrencies are highly speculative and you can’t be sure your investments will pay off. However, you can put yourself at ease if you use the right strategies.
To make sure you’re entering this field with minimal risk, you should consult some digital asset investor resources. This is the best way to learn more about cryptocurrencies and get the latest information on the biggest market trends.
Pay Down/Pay Off Debt
If there’s one thing we learned from 2020, is that the economy could turn up or tumble down at the drop of a hat, and we should all take that as a cautionary tale. And since life is so unpredictable, you should consider an investment opportunity that isn’t so risky.
That’s where paying down or paying off debt comes into play. While this isn’t technically an investment, if you have any type of debt, you should first pay it off completely or at least pay it down before you tie your money up in some other way.
Getting out of debt is a great way of increasing your level of preparedness for other investment opportunities. If another crash in the market occurs like it did when the pandemic hit, finding yourself buried in debt will do you much more harm than a bad investment opportunity choice.
Short-Term Corporate Bond Funds
Sometimes, when corporations need to raise money, they do so by issuing corporate bonds to investors. There are certain examples of these bonds being packaged into funds that own bonds that were issued by multiple corporations, sometimes even hundreds of them.
Short-term bonds are a great investment for those who are looking for a risk-averse way to make some money in a short time because their average maturity is between one and five years. This means that, unlike long-term bonds, they’re less susceptible to the fluctuations of interest rates.
However, it’s important to keep in mind there is always a risk that the credit rating of a company will downgrade. Or alternatively, the corporation might run into financial trouble and the bonds will default.
A Side Business
You can invest money but also your time and effort into a side business. Most side businesses usually start by using the experience of your current job to start a side hustle or by turning a hobby or something you know how to do into a money-making idea.
There are many ways to go big with small-scale business ideas. Let’s say for instance you have a great understanding of how social media works, you should consider becoming a social media manager for a small business.
As much as 44.8% of global internet users used social media to search for brand information in 2020 and that is one of the reasons why so many brands are active on social media. A lot of those brands hire someone who knows social media well to run their profiles, and that may be you.
If you’re well-versed in a topic, you can write an ebook. If you’re a teacher, you can start a tutoring business on the side. The opportunities are endless.
Final Thoughts
If you have enough money on the side to invest in something, now is the perfect time to do so. Even though 2020 was a rough year, 2021 is perfect for taking on new investment opportunities, and if you don’t take those opportunities, you may regret it later.
