It’s now mid-2016, and the world of personal finance is a very different place to what it was a year ago. Gone are the days of steadily increasing incomes and rising share prices, at least not for everybody. In fact, for those who rely on income streams tied to the performance of share prices, it could be a grim year ahead.
Income securities – notably, property investment trusts, or PIRs – were hot items a year ago, driven by low interest rates and increasing equity valuations. However, since then, income investors have been scrambling for yield, and the opportunities have dried up. The result is a major loss of income for those who invested, as well as an increased importance being placed on the safety of your capital.
In this article, we’ll discuss five ways you can still make money in 2016 – including four ways you can make more than you would have in a typical year.
1. Become A Real Estate Agent
If you’ve got an office with a nice view, and you’ve always dreamed about being able to buy a property like that and offer it for sale, this is your lucky year. The demand for residential real estate is soaring, and there are plenty of jobs available. While the pay isn’t great – depending on the size of the place you’re looking at, you could expect to earn between $60,000 and $100,000 a year – the perks are fantastic. You’ll get to live in a property you own, which could potentially be a good investment in the future. The best part is you won’t have to deal with annoying buyers or tenants, as there are already plenty of them out there looking for good property management services. So before you know it, you’ll be making more than you did last year, and saving a large sum of money in the process.
2. Start A Fund
If you’re looking for an investment with a good return and minimal risk, consider setting up a self-managed super fund. These are funds that you control and which you can invest in any asset, including property. The returns on these funds can be excellent, and they come with very low fees. The downside is you have to do the research and put in the work to make sure you’re getting the best deal possible. Setting up a self-managed super fund is a good move both financially and fiscally. The more you put in, the better off you’ll be, as the returns can be high. The earlier you start, the more time you’ll have to build up your fund.
3. Buy Gold And Silver
One of the best investments you can make right now is in physical gold and silver. The price of these precious metals has been on an incredible upward trend in recent months, which has provided excellent investment opportunities. Many respected financial experts predict the price of both gold and silver will reach new highs in the coming months. If you’ve been wanting to put a percentage of your money to work, but didn’t know where to invest, consider buying physical metal and holding it until the price goes up. The appeal of investing in gold and silver should not be underestimated. Despite the recent drop in the gold price, it still represents a great opportunity to make money. For those who own stocks, an investment in physical metal can also act as a form of insurance against a market downturn. The ability to physically own a stock gives you full control over it, which some people feel is more important than being able to trade freely on a stock exchange.
4. Start A Business
If you’re a creative person who can come up with a good idea and can execute it well, you can start a business in any industry. The perfect industry for an idea person is graphic design, as you’ll get to enjoy the process of coming up with creative designs while also getting paid for it. Other industries such as music, film, and literature can also be lucrative, though you might need to put in the extra work to establish yourself in your chosen field. Think of all the successful entrepreneurs who were once just like you – they had an idea and figured out a way to turn it into a business. They might not have had much of an economic education, but they were able to take advantage of opportunities and spot gaps in the market, which led them to become wealthy. You can do the same thing, but instead of building a business from the ground up, you can partner with an established company and use their resources to get started.
5. Invest In Property
If you’re looking to make some extra cash, consider investing in property. There are plenty of opportunities out there, whether you want to purchase a single family home, a duplex, or a commercial property. The appeal of putting your money into property is that you can make a profit from almost any situation. For example, if interest rates drop, you’ll be able to purchase a property with a low mortgage and rent it out. Or, if the price goes up, you’ll be able to make a profit from selling it. You can invest in property for short-term rental or purchase, the key is to find a good property manager to take care of the details so you can focus on making money. Before you know it, you’ll be enjoying a steady flow of income and increased savings, without having made too much effort.
Which of these five ways of making money in 2016 do you think you’ll find the most attractive? Let us know in the comments below.