People are concerned about money. More than half (54%) of the United States workforce cite money issues as a larger cause of stress than their health and relationships.
Finding unique wealth-building strategies is an excellent way to feel ahead of the game, and the strategies don’t even have to be complex! Here are some simple tips for staying on top of your money game.
Invest Your Spare Change in Crypto
Crypto is a word people all around the world are now familiar with. However, the use of cryptocurrency is still a mystery to many.
IRS Notice 2014-21 defined Bitcoin as property, meaning it would be treated and taxed as stock. This made it possible for individuals to buy and store crypto using IRAs. This tax-free investment growth option has been lucrative for investors like Peter Thiel whose account grew by $3 billion in three years despite the fact he hadn’t contributed to his IRA in 20 years.
However, Bitcoin was just the beginning. According to statistica, as of February 2021, there were 4,501 cryptocurrencies. In just one year, that number more than doubled to 10,397 cryptocurrencies worldwide. However, cryptocurrencies are easy to create and therefore many, if not most, have little chance of surviving long term.
While general investing in crypto might sound daunting, there are ways to ease into this market. Companies like Bundil, which was featured on Shark Tank, have created resources to make this process simple. Investors can link their credit or debit card through an app, and round their purchases up to the nearest dollar. The change is then invested into the user’s preferred cryptocurrency.
Don’t Forget About Gold
According to FRED Economic Data, 40% of all dollars ever printed were created within the past two years. In May 2022 alone, over two trillion paper dollars were added to the world’s economy.
All this new money will undoubtedly result in inflation. As famed economist Milton Friedman said, “Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”
Put in simpler terms, CEO of Gold Alliance Joseph Sherman said, “The more dollars the federal government prints, the less worth they hold.” As the son of a baker, Sherman witnessed firsthand his family’s struggle to build wealth and how inflation could destroy a retirement portfolio based on the value of the dollar.
“Gold can’t be printed willy-nilly,” said Sherman, “Owning gold gives you peace of mind that the purchasing power of your wealth will be here for generations to come.”
Collectibles As Alternative Investments
Perhaps a more exciting and out of the box strategy for building wealth is the use of collectibles.
When you think of collectibles, you may initially picture stamps, baseball cards, or the furniture on Antiques Roadshow. In reality, collectibles can be any item that increases in value from the time it was initially sold.
Using collectibles as an alternative investment option certainly has its pros and cons. The physical aspect of some items makes trade much simpler worldwide, and collectibles can be more simple to find online or even locally in thrift or antique stores.
On the other hand, the physical nature of some collectibles can make them susceptible to damage that could significantly, or permanently, decrease their value. They also require storage and potentially greater insurance. Individuals should also use extreme caution against fraud since collectibles are replicable.
The newly popular NFTs (Non-Fungible Tokens) have become notorious online collectibles. These collectibles are not susceptible to wear and tear like physical objects. These digital assets are often sold online with cryptocurrency, and they are not to be overlooked.
Chainalysis recently reported that the NFT market is currently valued at over $40 billion. At the same time, the novelty and volatility of the NFT market means you should be cautious when dabbling in it.
Stay Current and Keep Learning
Earlier in this article, I mentioned cryptocurrency and NFTs. Although you are now familiar with these terms, there was a time not very long ago when both were completely unfamiliar. Those individuals who took risks to explore and learn about these options early were more prepared for their economic impacts.
Nobody knows what revolutionary currency or invention is around the corner that could shake up the financial industry. However, keeping an eye out for what appears on the horizon could pay you back immensely. Staying informed may be a money maker’s greatest superpower.