Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
6 Profitable Ways You Can Use Your Extra Money
Dec 12, 2022
Image: Pixabay/stevepb
A lot of people deal with financial stress, meaning they lack money. That’s definitely an unenviable situation. And then there are those who have either gotten a raise, or they’ve received an annual bonus, and now they’re not sure what they’re supposed to do with it.
In these types of situations, you have two options at your disposal. You can either treat yourself and purchase something you’ve been longing for, for a while, or you can use that cash in a smarter way.
What do we mean by “smarter way”? Well, there are so many things that you can do that will help you build wealth and secure a much better financial future. Want to uncover them? Then scroll below!
Smart Things That You Can Do With Extra Cash!
Consider P2P Lending
What do we know about it? In a nutshell, when someone wants to lend money to other companies or individuals, then this whole process is known as peer-to-peer lending. Normally, when someone needs to urgently borrow some cash they would go to a particular financial institution (a bank, for instance) to apply for a loan.
However, that’s not the case with P2P lending. Namely, in these instances, you do not need any mediator, but instead, it will directly connect people who have cash and individuals who seek loans.
This is generally a great alternative for both borrowers and lenders. For instance, if you are a lender, once you loan your money to someone, you can receive a return in form of interest. If this sounds like an excellent way to earn more bucks, yet you would like to know more, it would be advisable to rely on the information from P2P Empire website because out there, you’ll quickly figure out how to invest in P2P loans. After all, it is the number one site when it comes to this.
Don’t Forget Your Emergency Fund!
Anyone no matter how great/bad their situation may be should have an emergency fund to cover their living costs for at least a couple of months. If you do not already have one, now is a great time to add some money to it.
Even though this isn’t an actual investment, it will definitely help you safeguard all your other investments.
What Are Your Other Options?
Consider Investing
If you’ve never done it before, then for starters, you can opt for products such as mutual fund systemic investment plans, which are known as SIPs, and fixed deposits. What's great about mutual funds is that they provide you with a vast range of funds to invest in, depending on how much you are willing to risk.
On the other hand, fixed deposits have much lower risks in comparison to other investment tools, plus you will be slowly working on expanding your nest egg for the future.
Opt For Other Investment Alternatives
If the suggestion above, doesn’t seem too appealing, then maybe you should consider other options. For example, if you want to purchase individual stocks, you can research firms you’re optimistic about and believe will do better in the future.
On the other hand, if real estate piques your interest, then you can always gather more useful information regarding real estate investment trusts. Namely, REITs represent companies that either own or finance income-producing real estate.
A lot of them trade on stock exchanges, hence you can purchase them within your taxable brokerage account, or IRA account. If by any chance, you’re interested in the continuously evolving space of alternative investments, then you can take cryptocurrency into account.
Pay Off Debts Or Student Loans
According to the study we've stumbled upon on NerdWallet, physicians and dentists have some of the biggest student loan debt balances. Now, if you have a student loan with high-interest rates, then it would be advisable to use that cash you received to pay off your loans or at least refinance.
See: 3 Reasons Why Ethereum Is a Good Investment
Before you consider refinancing your loans, just be sure to take into account your eligibility for student loan forgiveness. On the other hand, if you currently have any debts (such as credit cards), it would be wise to pay them off.
Invest In Some Skills
One of the best investments that you can make is in yourself. It’s always a great idea to invest some money in your skills because precisely they can open up your career prospects, meaning that you’ll be earning more money in the future.
Image: Pixabay/stevepb
We know that right now you are probably too excited because you've just received some extra cash. But don't flush it away so quickly, instead, go through these suggestions and pick the one that currently seems like the best option.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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