Skip to content

Invest in Something Other Than the Stock Market

[wp_campaign_1]

Do you have money in the stock market right now? How’s that been working out for you in the last 5 years? Unless you specialize in options (which hardly any of us do), I’d venture a guess that quite a few of you wished your investments were in something other than that volatile stock market.

What Else Is There to Invest In?

Many of us work at a corporation and the investments are limited to a handful of mutual funds within a 401(k) or 403(b). Sure, you can select a few different types of funds and call yourself “diversified”, but are your investments really diverse? No! Your money is all invested within the general stock market. And, if we hear that Europe is nearing bankruptcy, it doesn’t matter if you own shares of steel or toilet paper, it seems like the entire market as a whole goes down the tubes for the next couple of days.

You might not know of any other ways to invest your money, but it is essential to learn so that you can be truly diversified. If you are debt free and you are interested in investing some additional fund outside of the stock market, here are some excellent options.

Real Estate – Investing in real estate (to rent, not to own) is always at the top of my list. Typically the value of the property increases with inflation each year, but even if it doesn’t, your rental rates will often stay consistent and should yield you a tidy profit each month.

High-Yield Checking Account – In almost every area, there are Credit Unions that offer a 3% yield on your savings. Sure, it’s not huge, but it’s 100% effortless and safe! If you have $15,000 in a savings account right now, you could shift it into a new bank and earn an extra $450 each year! Pretty simple.

Your Education – If you are looking to advance in your career, but are feeling held back because you’re without a degree, perhaps it’s time to invest some time into your education! After all, with a degree (or a higher-level degree), you could almost certainly increase your yearly salary and earn much more over the course of you life than what that degree cost you.

Your Business – my wife and I decided to go this route. I invested some money into this website (and a couple of others), and she invested a few dollars into a camera and flash for her photography business. Between the two of us, we have made more than 10 times what we invested initially. There are plenty of opportunities out there for you to do the same.

Angel Investing – This is often a little risky, but if your friend or neighbor truly has a great idea, but needs a little money to get it started, perhaps you could give them some money and in return, they’d make you part owner of their company. Bill Gates had a few investors initially and they are multi-millionaires today – don’t miss out on a great investment. Be careful wth this though – many businesses fail, which means you may never see that money again.

Get advice on investing at www.independentfinancialadvisor.co.uk

Do you think you’ll invest in something other than the stock market? What are you investing in?

Investing Money

AUTHOR Derek

My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

46 Comments

  1. I bought a lot of websites aka thefinancialblogger. I find that they yield the best returns, IF they don’t get into trouble.

    In fact, I am starting a new blog that focuses on how to buy and sell websites as passive investment. It is not ready for showtime yet but I hope it will be useful for folks who want to learn about that.

    • Sounds like an interesting read! Let me know when it’s posted!

    • As funny as it is, I have to agree with Shawanda on this one Aaron. It’s weird that I associate this site with Derek talking and your site with not having a person behind it.

      Well, now I know for the future. Nice to meet you!

      • Oops, I am not the financial blogger!

        I am just saying I am buying a lot of websites like what the financial blogger is doing.

        Sorry for the confusion!

  2. You can also invest in your life, relationship and family which is more important than money.

    • Very true Jai. There are plenty of things that are more important than money, but since my site is about finances….. I’ll probably stick with that. 😉

  3. 3% saving account? where?????????? hahahaha

    I invest in the stock marken and do very well…but I am there for the long term.

    Education is always a good investment, as long as you dont get into a lot of debt getting it.

    Real Estate is my next option after stocks…but I believe that you should first pay off your own house before your get into debt buying another one.

    • Seriously, check out the credit unions. Mine used to offer 4% until just a few months ago. I know of another local credit union that offers 2.5% up to $25,000. It’s 100% safe!

  4. Right now we invest in a few stocks and ETF’s but I would love to expand into some art and antiques.
    Real estate is a consideration down the road but still on the fence about that one 🙂
    Another Great article Derek!

    • I know absolutely nothing about art or antiques, but with time they definitely have a chance to appreciate as well. I still love the idea of real estate, especially since they’re all offered at a discount now! 🙂

  5. 3%?! I thought the 0.8% with ING’s Direct Orange savings account was good haha I might have to look into this. I wouldn’t mind earning a few hundred dollars from our savings! Do you have a savings account through a credit union?

    • Ha. Nope, 0.8% is not the best you can do. If I remember right, you’re pretty local to where I live. I’ll send you an email of some Credit Unions that offer a great rate on their checking accounts.

  6. We have some of our nest egg in stocks, but far less than ‘the experts’ would recommend. I’m in the heretic camp that believes that the accepted wisdom that you’ll retire a pauper unless you put the lion’s share of your retirement savings into stocks is largely an invention of the Wall Street marketing machine. That said, since interest rates went to near zero and bonds have peaked at amazingly high prices and real estate prices continue to fall, alternatives to stocks are not so easy to come by. For now, I’m being content with a below-inflation return, but I admit the scarcity of non-stock alternatives of acceptable risk is frustrating.

    • Yeah, I don’t buy into putting all of your money into the market either (hence this article). My wife and I put about 10-15% of our income into retirement accounts, but the rest goes toward our home loan and to our future rental property (or perhaps a storefront business). 🙂

  7. Investing in savings account just softens the loss from inflation, rates are expected to remain low for at least 12 more months.

    • Yeah, like I said, it’s not a ton compared to what investors were used to making in the market, but in today’s world, 3% sounds pretty dang good!

  8. Right now, I’m investing in my own business. The stock market is cool and all, but I need to focus on increasing my income…a lot. I think a substantial income is the most important element when it comes to obtaining financial freedom.

  9. There are lots of things such as collectibles, antiques, art, classic or antique cars. I invest in all of the above but cars.

    • Yep, those are potential investments as well. I don’t know too much about most of them, but I might just have to learn soon once our house is paid off and I’m looking for potential investments! 🙂

  10. I would love to get 3% on my savings/checking account but I don’t think they have anything like that around here. Even if they do, do you have to have something like 20 debit transactions a month to get the 3%? There has to be a catch, right?

    • There is a required number of debit card transactions per month – I’m pretty sure it’s 10. It’s no big deal for us though, because we don’t use our credit card.

  11. I just looked into P2P Lending as another investment type. Unfortunately, my state is not one of the currently approved investor states for Prosper and Lending CLub

    • P2P lending is a decent idea, but it sounds like there are too many people getting burned in this venture. Apparently, some people don’t think they need to pay back the money that they borrowed…

  12. You can invest money now to save money later. Upgrading insulation in your house, improving energy efficiency, and other similar changes can pay for themselves many times over.

    • That is very true SFH. That’s a good tip. Thanks for the comments!

  13. I invest in the stock market and over the last 5 years, I’ve made money with a buy and hold strategy. The market may be volatile, but you need to focus on the long term and ignore the short term emotions that the media brings out in yourself.

    I do agree with investing in yourself, a business and real estate. But for most, cars and collectibles are too niche of a market.

    • Sounds like you’ve got a good head on your shoulders MSG. Keep looking toward your long-term goals and you’ll do just fine!

  14. I am thinking about expanding to investing in real estate but I don’t have the time to run it so I would need someone else to do it which will already cut into my earnings potential. We’ll see how it goes.

    • Maybe you could find something else besides a regular day job that would be more flexible to your soon-to-be real estate empire. It may be time to think outside the box!

  15. I’m investing in real estate by having a rental property. I think with interest rates being so low that it is a good investment right now.

    • I bet! I can’t wait for my first rental property! I expect we’ll be there in about 3-4 years.

  16. Real estate is the way to go right now. Especially if its very cheap. I suggest that you have to renovate it and make it more livable.

    • I agree! We bought our house less than a year ago and it’s already worth 20% more than when we bought it!

  17. Other than the stock market, the best option that I see for those starting up is investing in their business. In our case, my husband investing on some printing machines to provide personalized shirts and company giveaways.

    However, if you have something big sitting in your savings account- then I would go for real estate. Buy-beauty-sell. You buy a property, beautify it a bit, and sell it at relatively higher price. That’s the best.

    Wishing you all success,
    Belinda

    • Investing back into your business is a great idea! I plan on doing the same thing, although, I’m not totally sure what I should invest in at this point. 😉

  18. It is great to read articles where people are saying to diversify and invest in real estate and not just the stock market. I believe, even though I am in real estate, that you should have balance between businesses, stock market and real estate. Also prudent cash reserves.

    • Sounds like you have a perfect mix Anton! Diversification is more than just owning a couple of different stocks.

  19. Really extensive list – thank you for sharing! It’s really hard to find good resources on other investment opportunities, so I
    appreciate the list.

    • No problem Todd. I’m glad you found it useful!

  20. Without proper knowledge, many people have invested and lose money in the stock market. In order to avoid this case, you should contact the agent that provides frequent idea and advice for you to dig up more money and at the same time it should prevent you from the heavy drop.

    • That is one way to invest for sure. I still have a love for investing in real estate though. 😉

  21. Money is the only thing, which governing the people under its control. Most of the people are keeping on moving swiftly in turn to earn more money than others. Everyone will not be interested in working under any organizations.Only few people will like to start their business. The lingering people will not have the enough sources to start the business and in addition they cannot withstand in the greedy society cause of their lack in talents.


Add a Comment

Your email address will not be published. Required fields are marked *

Related posts