I have around $40,000 in my savings account. I don’t like the idea of it just sitting there doing nothing. But, like many others, I’m not sure what to do with it to make it work for me without risking losing it all.
I don’t know much about real estate, except for buying and selling my own house. Some of my friends do long-term rentals, Airbnb, and short-term rentals, but they spend a lot of their time managing it. I work over 60 hours a week at my job, so I don’t have much time to spare. I might consider it if it’s a good investment, but I’m not good at fixing things, so I’d need help with any major renovations.
I have a small collection of dividend stocks that earn me almost $300 a year. I’m thinking about buying more shares of these stocks and adding some new ones to diversify my portfolio.
Do you have any other suggestions or recommendations for making my money work for me, besides real estate and dividends?
Investing your savings to generate income is a wise decision, and there are several options you can consider that align with your busy schedule and investment comfort level. Here are some suggestions:
Robo-Advisors: These are automated platforms that manage your investments using algorithms. They’re great for busy individuals because they require minimal time and effort once set up.
Index Funds and ETFs: Investing in index funds or exchange-traded funds (ETFs) can be a good way to diversify your portfolio with a single transaction. They track various market indices and are generally passive investments.
High-Yield Savings Accounts: While not an investment per se, high-yield savings accounts offer better interest rates than traditional savings accounts, making your money work a bit harder with no risk involved.
Peer-to-Peer Lending: This involves lending money to individuals or businesses through online services that match lenders with borrowers. It can provide higher returns than traditional savings, but comes with more risk.
Real Estate Investment Trusts (REITs): If you’re interested in real estate but don’t want the hassle of managing properties, REITs might be a good option. They allow you to invest in real estate indirectly and can provide regular income through dividends.
Bonds: Investing in bonds can provide a steady stream of income through interest payments. They are generally considered safer than stocks but offer lower returns.
Dividend Aristocrats: These are companies that have a history of increasing their dividends over time. Adding more of these stocks to your portfolio could increase your dividend income.
Crowdfunding Platforms: Real estate crowdfunding platforms allow you to invest in real estate projects without the need to manage the property yourself.
Automated Investment Services: Some services allow you to invest in a diversified portfolio of stocks and bonds, automatically adjusting your investments based on your risk tolerance.