While this is a challenging time for many businesses, there are also some great opportunities to protect your financial future by investing. If you’ve gotten your stimulus check, or you find yourself making more on unemployment than you were at your job, why not take some of that extra cash and use it to grow your wealth?
I understand that some people will need to use all of their available cash to cover expenses, and that’s okay. But if you have anything to spare — even if it’s just a few dollars each week or month — investing can help you increase those dollars over time, without you having to do a thing. In this post, I’ll provide some tips on why and how to do that.
Why invest?
As a result of the COVID-19 crisis, the American economy is suffering. With all the loans, grants, unemployment funds and stimulus checks the government has provided, the amount of cash in circulation is going to increase by several trillion dollars. That means inflation rates will increase — and both a recession and hyperinflation are likely to occur.
When inflation goes up, the value of the dollar goes down. If you leave $1,000 cash sitting in a bank account, that means the value of your money will go down, too. However, buying gold and keeping heavy, material assets sitting around your house isn’t a convenient option, and investing in real estate may be out of reach for many.
That’s why I recommend that my clients protect their wealth by investing it in stocks or cryptocurrency (or both); it’s easy and cheap or free to invest in either of these options, and you can do it entirely online.
Investing in stocks
Buying and trading stock isn’t just for Wall Street, and you don’t need to have a stockbroker to do it. Robin Hood is a site that allows you to buy and trade stocks at a discount, with no commission fees — and when you use my referral link to sign up for a free account, you’ll also get a free “mystery” stock that could be worth over $200.
Robin Hood offers fractional shares, which means you can invest in stocks for as little as $1. This also allows you to easily build a portfolio of multiple stocks, which helps reduce your risk. Stock prices are so low right now that it’s even easy to invest in oil; then, when the market goes back up, you can sell these stocks at a profit.
Of course, the value of your stock always depends on the market. If you want a “set it and forget it” option, I suggest…
Investing in cryptocurrency
While the value of the U.S. dollar and other global currencies are going down, the value of cryptocurrency has actually increased by almost 50% since the beginning of the economic downturn.
Why? As other currencies become worth less, it takes more of them to buy crypto, driving its value higher. In other words: the less the dollar is worth, the more your cryptocurrency is worth. That’s because, while governments can continually print money and go deeper into deficits, there is a finite amount of cryptocurrency. What’s more, some cryptos even allow you to accrue interest.
I recommend using Coinbase to invest in cryptocurrency; their site teaches you about crypto, and gives you free currency just for learning. Using my referral code, you’ll also get a free $10 in Bitcoin if you buy or sell $100 or more in crypto through the site.
By following these tips, you can make money without leaving your house — or even lifting a finger. To learn more about how you can invest, protect and grow your wealth or plan for your financial future, contact me today for a free consultation. I’m also happy to answer any questions about these platforms; just give me a call or an email.
