With the economy here in the United States looking shaky at best, I know I am hardly alone in looking for alternative ways to invest but still protect myself from a stock market crash. Sure, there is no guarantee that one will happen, but can we be sure that one will not? The answer to that is no, unfortunately.
That might seem like a bleak way to look at it, but at this point, I believe it is more practical than anything to start preparing for another economic downturn. Most news outlets and the Bureau of Economic Analysis agree that something rather sinister is lurking on the horizon in terms of finances.
So, what can we do about it? Well, my aim today is to help teach you some of these methods and the options you could potentially take if you are worried. I am not trying to be alarmist, of course, but more of a realist here. So, if you want to learn some tips and tricks for protecting yourself, keep reading!
Investing – Why it Matters, Anyway
Honestly, if you have followed this topic at all on the internet, the word “investing” feels more like a buzz term than anything else at this point. It is shiny and appealing and there to lure us into reading articles that do not interest us at all – usually something about cryptocurrency or the other latest fads.
That all being said, there are real and practical reasons to learn about what investing is and why it matters. Over time, most families that build wealth have done it through this method in some way or another. So, that is part of why you may want to stick around today.
In simple terms, we can use it as a tool to help improve our lives. How does that work? It can allow us to start saving and building up a nest egg, which is a goal that many of us have. After all, who does not want to save up to help pursue our dream jobs or living situations in the future? Very few of us, I am sure.
How does this all work, then? Well, a lot of it comes down to a few easy concepts. Those include interest, appreciation, and dividends. In terms of interest rates, knowing the difference between simple and compound is another important thing. I remember vaguely learning about it in ninth grade math class and it was the bane of my existence.
Do not worry if you have had a similar experience. There are resources out there such as this page, https://www.investor.gov/additional-resources/information/youth/teachers-classroom-resources/what-compound-interest, that can assist with helping you to learn about it without making things too complicated. It might be a bit of a pain, but it is worth it in the end.
Why should we care about any of this, though? Well, investing is a surprisingly critical part of helping people meet their long-term financial goals. That is largely because of those terms that I mentioned above, so it is a good idea to be familiar with them at least to some extent.
Tips for Investing
This is the next big question that most people have. Are there certain assets that we should prioritize over others, and if so, why is that? Well, things are a bit complicated right now, as I am sure you can probably imagine. It is hard to narrow down what might work better than other things given the uncertainty in the world right now.
If you did not know, because of how globalization has changed our world so much, most economies across the globe are connected in one way or another. We saw a great (though not for consumers, of course) example of this with gas prices this summer. They went up astronomically due to the strife that is still happening between Ukraine and Russia.
So, keeping up with these trends or at least staying informed in terms of what is happening matters when it comes to selecting the assets that we want to invest in. Some people might advise that you get into real estate right now, as the market is booming. However, there are a few other things that you might want to keep in mind.
Real estate might not be bad right now, but the market does look eerily similar to how it did back in 2008. Some experts are predicting a crash could happen again. Just remember that if you decide to go with that route.
You might be wondering what might be a solution, then? Well, a lot goes into that of course, but something that has been catching a lot of investors’ eyes right now are precious metals. To start, you could learn more about Onegold and other brokers like them.
Why go this route, though? Well, there are actually many historical precedents for deciding to invest in precious metals. Gold, silver, palladium, and platinum have had a lot of value all throughout history and the prices very rarely fluctuate. This means that it tends to be a safe way to store money that is not in a paper currency.
In that way, most people regard it as a “hedge” against inflation. This is because something like gold is not impacted by inflation rates or the devaluation of paper currency. So, that is part of why many investors have their eye on precious metals at this moment.
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Still, it is not for everyone. It requires storage, for one thing. Once option could be to work with a custodian to keep it safe, but that does come with extra fees.
As with all types of assets, it requires education and being informed. It can be a great opportunity, but I would recommend caution if you were a first-time investor. Do your best to learn all that you can before taking the plunge and inquire with many different gold brokers before settling on one to purchase from. There are plenty of reviews online!