An investment you can control — wishful thinking or reality? Many people still feel that burying their money in the back yard or hiding it in the coffee can is the surest and most sensible financial move in this volatile environment. The notion of no growth is far more digestible then lost principal. But realistically, just to keep pace with inflation you will need to experience some growth — unless you plan to work until you drop or spend less and less with each passing year until you die.
The return on any investment is unavoidably based on how much you pay for it. To be frank, the Dow hovering around 13,000 is not really a bargain. So your mid- to long-term return on investment will not reach the upsurge of the 1980s and ’90s. With this dismal view I just painted (sorry), a worthy return simply may not be an option. Therefore, you should consider accepting the fact that parking your hard-earned money in vehicles and investments that offer this sort of marginal hope is not the only way.
Look for return on your investments where you least expect them. Find new and creative things to invest in. The only prerequisite: the ability to think way outside the box. Creative investing will keep a hopeful future alive and kicking alongside your systematic savings and dollar cost averaging into anticipative mutual funds.
So what if you had $1,000 to invest? Sure, you could add it to your coffee can stash or buy the usual stocks, bonds or mutual funds. Better yet, here are a few ideas that will reap whopping returns and peace of mind:
1. Do small home-enhancing projects. Full remodels will run you more than your $1,000. But landscaping, painting, flooring updates, light fixtures, countertops, back splashes, etc. can give you added return upon your home sale.
2. Give yourself a full makeover. Enrich your skill set with marketable and transferable knowledge, like public speaking, project management and leadership acumens. Enhance your appearance with a new look and smart wardrobe pieces. Whatever your motive — interviewing for a better position in your new power suit or meeting Mr. Right in a dating uniform that communicates the perfect message — re-brand yourself with the help of an executive or business coach.
3. Upgrade your technology with the latest and greatest. Perhaps an iPad or a MacBook Air/Pro: it’s light, efficient and safer than Windows machines according to the experts. Up-to-date tech gadgets make investing, banking, communication and doing business effortless, which means huge time savings in your day. Since most will agree that time is money, how about that for a huge return.
4. Keep your heart healthy and medical costs down by investing in a solid piece of exercise equipment (treadmill, elliptical, spin cycle, etc.). For diversification, fill in with the knick-knack equipment like free weights, a core ball, bands, hoops, and exercise DVDs.
5. Invest in the next generation. Offer a child the experience and opportunity to become confident, driven, and prepared. Encouraging future politicians, business men and women, engineers, doctors, athletes, lawyers, teachers and inventors offers a societal return.
6. Get a side business off the ground. No overhead, just the bare essentials to get you generating return on your seed investment. The idea is to find something you are already good at or do for a living, cultivate a little side business and watch it grow into a steady stream of revenue.
After all, Barbara Corcoran, real estate mogul and the only female Shark on the television reality show Shark Tank, turned a $1,000 loan into a multi-million dollar real estate empire and sold it for more than $60 million.
Freelance writer, financial consultant, entrepreneur and mom, Tamela Saulsberry brings a combined 16 years of experience in business, finance, sales and coaching. She is delighted to receive your questions and feedback. She can be contacted at tamela@liveshero.com or 612-269-2341
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