The Best Investments That Will Make You Wealthy

The Best Investments that Will Make You Wealthy

Investing in long-term assets is the key to living a happy, healthy, fulfilling life. If you want to succeed and unlock your potential, keep reading.

I’ve listed the best investments you can make to make you wealthy.

#1 Index Funds

Index funds are great investments because they are low-risk and generally have a high return rate.

Index funds are a type of investment that tracks the market index, such as the S&P 500 or the Dow Jones.

Inside the index fund is a portion of various companies from all different industries. Because the index fund only owns a piece of an entire company, they are not as volatile as owning the stock as a whole.

So, if the stock tanks, you still have several other companies holding up the fund.

For example, let’s say you own the Vanguard S&P 500 ETF (VOO). This particular index fund tracks the S&P 500, hence the name. Because of the billions of dollars invested in the fund, the expense ratio is only 0.03%.

So, for every $10,000 invested, you would pay $3 annually.

Warren Buffett is a huge proponent of index funds because he claims they’re the most sensible way to build wealth. No matter the state of the economy, the stock market continues to rise yearly.

So, due to compounding interest, you’ll make much more than your initial investment and have substantial wealth in the future.

#2 Real Estate

Real estate is one of the best investments you can make to generate wealth.

Real estate investing is when you purchase a piece of real estate, leaving you in charge of the management and sale of the property.

Since you’re the owner, you can charge people to rent the property, giving you consistent monthly cash flow. 

One of the best things about real estate investing is that you can purchase properties without using your own money. Instead, you can use other people’s money (OPM) to buy properties.

You can do this by raising capital from investors who will lend you the money for the property.

Eventually, you will have to pay back the lenders plus interest, but you never used your own money.

#3 Side Hustles

Side hustles are great investments because you can build multiple income streams. By creating multiple income streams, you diversify your income.

Diversifying your income is beneficial for increasing your overall income versus solely relying on a 9-5.

In addition, if you lose one income stream, you still have several others to fall back on. Side hustles are also beneficial for escaping the 9-5 life and building the life you want.

Some examples of skills or hobbies you can turn into side hustles are writing, website building, flipping (furniture, vehicles, houses, etc.), and online marketing.

You can start doing these skills for fun for yourself or other people, scaling up as you go. One side hustle I’m particularly fond of is affiliate marketing.

Affiliate marketing was the first successful business I started that led me to become an 8-figure entrepreneur.

Affiliate marketing was the first successful business I started that led me to become an 8-figure entrepreneur.

#4 Knowledge

Knowledge is one of those investments that is priceless.

The most successful people in the world have vast amounts of knowledge simply by reading books, articles, newspapers, etc. Investing in knowledge consists of purposefully learning skills that will enhance your life.

For example, studying financial literacy to become fluent in finances is essential for every aspect of life. You need financial literacy for owning a business, doing your taxes, purchasing real estate, getting out of debt, using debt to purchase assets, etc.

Another critical piece of knowledge is current events. For example, we are in a recession right now. So, that means you should study what a recession is, how it affects you and the economy, and what to do about it.

#5 Yourself

Investing in yourself is another one of the best investments you can make.

Investing in your personal, professional, and physical development is the foundation from which success is built. Each area of development supports one another to help you become the best version of yourself so that you can tackle any challenge you face.

For example, strengthening your personal development by learning leadership skills positively affects your professional and physical lives.

On the other hand, if one area of your life lags, the other areas of your life will be affected. So, it’s essential to align these areas of your life before starting your entrepreneurial journey.

Personal Development

To strengthen your personal development, I recommend investing in personal development books and courses and watching videos such as TED Talks.

I also recommend practicing personal development skills such as communication and time management every day.

Professional Development

To strengthen your professional development, I recommend getting a mentor or coach to help you push through the barriers in your professional life.

For example, if you want to strengthen your mindset and get clear on your vision, a coach can help you with these and be your accountability partner.

Professional development also consists of strengthening essential work skills such as sales, communication, and problem-solving.

Physical Development

Lastly, strengthening your physical development is pretty straightforward. Your physical development consists of purposeful movement such as exercise and internal health such as nutrition.

Getting your physical development in line will save you money in the long run because you’re avoiding preventable hefty hospital bills, physical therapy, and medications.

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