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Tag: How to Make Money Online

  • Recent Graduate’s ‘Simple’ Side Hustle Earns Nearly $60,000 | Entrepreneur

    Recent Graduate’s ‘Simple’ Side Hustle Earns Nearly $60,000 | Entrepreneur

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    This Side Hustle Spotlight Q&A features Angelina Licari, a 23-year-old recent college graduate based in Dallas, Texas. Licari has been earning consistent income as a seller on Poshmark, a social commerce marketplace featuring new and secondhand clothing and other products.

    Image Credit: Courtesy of Poshmark. Angelina Licari.

    When did you start your side hustle, and where did you find the inspiration for it?
    I originally began my Poshmark side hustle in 2016 as a high schooler saving for college. I remember looking up “best side hustles for high schoolers” and finding Poshmark. I thought it could be a fun way to make money by selling clothing I didn’t wear anymore. I continued selling on Poshmark in college and had the opportunity to become a Campus Representative, which involved introducing other students to the platform. After a few months of navigating post-grad life and trying to decide what was next for me, I decided to take a mental hiatus and give myself some time to process and plan. But I still had bills to pay and couldn’t move forward with no income. I remember contemplating what to do when an “aha” moment hit: Poshmark, of course! I decided to start back up in August 2022.

    Related: These Coworkers-Turned-Friends Started a Side Hustle on Amazon — Now It’s a ‘Full Hustle’ Earning Over $20 Million a Year: ‘Jump in With Both Feet’

    What were some of the first steps you took to get your side hustle off the ground?
    In the beginning of my post-grad Poshmark journey, I was just selling items from my personal closet that I no longer wore. I created an Instagram account for my business and followed other sellers, and that’s where I started learning more and more about the opportunity to turn a seemingly simple side hustle selling my clothing into something much bigger. In September 2022, Poshmark announced the beta launch of Poshmark Live Shows, and I immediately applied. I was approved to host Poshmark Live Shows, where I could engage with an audience and show items in real time, and I thought it was worth giving a try. After a few shows, I was hooked. I saw the potential in building my own business and never looked back.

    What were some of the biggest challenges you faced while building your side hustle, and how did you navigate them?
    After a few consistent shows, I realized that if I truly wanted to build my own business, I had a lot of groundwork to lay. I quickly became a high-volume seller and only had so much of my own clothing to sell. I needed to expand my inventory to provide my audience with items that they were seeking. Around this time, I started sourcing more inventory from other secondhand clothing retailers. I’ve gone through numerous growing pains over the course of my side hustle journey, including sourcing and coming home only to notice stains and/or holes on items that ended up being unsellable, optimizing my time as a high-volume selling team of one and lowering my cost of goods across the board.

    Related: These College Friends Started a ‘Fun’ Side Hustle That Landed Them on ‘Shark Tank’— Now the Idea Is Helping Dozens Make Extra Cash: ‘Start Saying Yes’

    How long did it take you to see consistent monthly revenue? How much did the side hustle earn?
    Thankfully, I was able to achieve fairly consistent monthly revenue pretty quickly, but it wasn’t truly until January of this year that I felt I found a consistent strategy that worked best for me. I decided to take my Poshmark side hustle full-time, and I have had nearly $60,000 in sales with a lot of upward momentum month over month.

    What does growth and revenue look like now?
    So far in 2024, my revenue is double what it was at this point in 2023. Q1 of 2024 produced over 90% growth over Q1 in 2023.

    What do you enjoy most about working on this side hustle?
    I love the creative freedom that my Poshmark side hustle has allowed me to have. Working in the secondhand clothing industry gives me the opportunity to curate specific inventory based on what my audience loves and current trends while keeping it affordable and sustainable.

    Related: Her College Side Hustle Led to an Immediately Profitable Product That Sells for Up to $450 — and She Didn’t Even Consider Herself ‘a Business Person’

    What’s your advice for others hoping to start successful side hustles of their own?
    When debating which side hustle is right for you or if you should follow that random creative idea you had, why not go for it? There are endless opportunities to create anything you want, even if it seems out of reach. My biggest advice to anyone hoping to start a successful side hustle is to stay true to you. Follow your heart, trust your gut and have fun with it. Allow yourself the space to feel the pains of growth, but don’t let them discourage you from getting up and trying again.

    This article is part of our ongoing Young Entrepreneur® series highlighting the stories, challenges and triumphs of being a young business owner.

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    Amanda Breen

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  • 7 Internet Based Home Businesses to Start in 2024 | Entrepreneur

    7 Internet Based Home Businesses to Start in 2024 | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    It is no secret that many people are struggling to get through these current economic times, but with just a laptop, webcam, strong internet connection and some effort, you can earn some extra money working from home. Creating and owning an Internet home business is not new, but most people overlook that these types of businesses have no real overhead. You don’t have to have a fancy office or employees. Your desk or kitchen table and a strong internet connection are all that is needed.

    Related: 4 Super Simple Side Hustles That Could Replace Your Regular Wage — Fast

    1. Build a sales funnel website and landing page

    There are so many small to medium-sized businesses out there that don’t have sales funnel websites or landing pages. These websites capture customer information when they click on a company website or ad. They’re also used on social media ads to incentivize customers to enter their information, such as a coupon, discount code or free eBook.

    The customer and their information then get added to a company email list for future email blasts or email drip campaigns. The upside is that once you build a great sales funnel, it’s easy to duplicate for other clients. The key will be pitching it to business owners to purchase.

    Related: She Started a Furniture-Flipping Side Hustle to Pay Off a $10,000 Dental Bill. It Surpassed Her Full-Time Job’s Income Within a Year — Earning Up to $37,000 a Month.

    2. Monetize your social media accounts with video

    Social media platforms YouTube, Instagram and TikTok pay creators to create video content through Reels, Shorts and TikTok. Each platform is different, and the same goes for how to get accepted as a creator, but if you’re great with video and have a niche, you could be raking in the money.

    The narrower the topic, the better the audience will be. Example: Watching you describe and play video games versus watching you describe and play Dungeons and Dragons. The upside is you’ll have consistent income if you post every couple of days. The key will be creating enough content for viewers to consume and posting consistently.

    Related: He Started a Side Hustle in His Dorm Room With ‘a Bunch of Ingredients From Amazon and a Crockpot’ — Now It’s a $56 Million Brand in Walmarts Nationwide

    3. Monetize a podcast

    Having a podcast is nothing new. According to Exploding Topics, over three million podcasts are out there as of September 2023. After recording and publishing the podcast, the trick is to turn around and chop up the video to make Reels, Shorts and TikToks. The downside is you’ll need to record multiple podcast episodes to keep people returning for more. The key is interviewing popular people with a large following as guests.

    Related: His Side Hustle Solved a Common Problem for Homeowners. Now the Business Brings in $3 Million a Month During Peak Season.

    4. Retail and online arbitrage

    This one will take some overhead for the correct software, and you’ll need money to purchase the inventory of products to sell, but it’s easily a great way to earn some cash. Sites like Amazon FBA and eBay are where you sell the products. The downside is you’ll need to source the products to sell on the sites, which takes time. The key is investing in the correct software to ensure a big enough margin to make sense purchasing the item to sell.

    5. Create and monetize a popular local news Instagram page

    Most people’s attention is on Instagram, so why not create a business with it? It’s pretty simple: create a new Instagram channel and post local news from your town or city — news on car accidents, crime, sports, recent restaurant locations, events, etc. People will share and subscribe to your posts because it has local news and is not biased television news.

    Once you get enough subscribers, you can start charging local businesses to post on the page. You can monetize stories, reels and posts. The larger the subscriber base, the more you can charge. Don’t overdo it; no one likes ads or being sold to. Building your audience will take time. The key is to find and post unbiased local news worthy of someone stopping scrolling to view it.

    Related: He Launched His Creative Side Hustle Out of a Garage. Now It’s Worth $225 Million.

    6. Video editing

    Video is one of the most popular ways to communicate and market today, and it is used on multiple social media platforms to earn money. Many creators don’t have the time or just aren’t skilled at video editing. This is where you come in. Start direct messaging (DM-ing) influencers with published videos and offer video editing services.

    A great way to get their attention is by editing one of their current videos for free and sending it to them. If your video edits are great, you’ll get their business. The downside is video editing is time-consuming. The key is having multiple influencers that want your editing services so you no longer need to spend time directly messaging more influencers and can focus just on editing video.

    7. Create online courses

    Do you have knowledge or a skill that can be taught to others through video? It can be anything from selling luxury homes, onboarding new staff as a Human Resources (HR) Director, or baking an award-winning apple pie. People will purchase online courses if you can capture the audience’s attention and produce multiple videos in a series on the subject.

    These video courses can also be chopped up as teaser clips, reels, shorts and TikToks. The key is storyboarding and scripting the content beforehand for a seamless video series. The downside is that it will be a time-consuming project if you wish to publish a quality product.

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    Chris D. Bentley

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  • Don’t Waste Your Money — Here Are 5 Proven Tips for First-Time Investors to Build Wealth | Entrepreneur

    Don’t Waste Your Money — Here Are 5 Proven Tips for First-Time Investors to Build Wealth | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    It’s estimated that 42% of Americans don’t own stocks. There are plenty of potential reasons why so many people choose not to invest, from fear of losses and not feeling like they have enough money to start investing to simply being unsure of how to start.

    However, first-time investors can get started even with a small amount of money, and with sound investments, they can earn much more than they would from the interest generated by a savings account.

    Still, there’s always risk with any investment — there’s never a guarantee that you’ll get big returns. However, by following some key practices, you can reduce your risk of losses and avoid wasting your money.

    Related: Why Entrepreneurs Shouldn’t Invest in Stocks

    1. Establish an investing plan

    Every first-time investor should start by developing a basic investing plan. This doesn’t have to be so detailed as to list each stock you’ll invest in. Instead, it should set your parameters and goals that will help guide your investing strategy.

    For example, your investing plan should consider how much money you can afford to invest each month — most financial experts recommend a goal of 15% of your pretax income. You should also lay out your overall risk tolerance — including how much money you can afford to lose through your investments.

    Above all else, your investing plan should have a goal. A clear goal will help you determine how much and how long you’ll need to invest.

    2. Invest for the long-term

    One of the most frequently repeated pieces of advice every first-time investor should adhere to is to focus on the long-term rather than trying to achieve short-term gains. Stocks tend to be very volatile in the short term, with prices rising and falling rapidly. Far too many newbie investors fall into the trap of trying to constantly buy low and sell high, but this can easily lead to making impulsive decisions that waste money.

    Instead, it is better to view investments as a form of long-term financial growth. Buying and holding stock enables investors to benefit from long-term growth, which is usually far more consequential than short-term ups and downs. Rather than trying to time the market based on speculation or emotions, a focus on the long-term keeps you on track with your goals.

    Related: How to Live With Purpose and Stay Focused On Long-Term Goals

    3. Carefully vet your financial advisor

    Many first-time (and experienced) investors choose to work with a financial advisor to help them manage their money. A quality advisor can provide advice tailored to your goals and risk tolerance to put you on track for successful investing. But as with any other field, not all advisors are created equal.

    As a report from AdvisorCheck reveals, 12.74% of actively practicing financial advisors have a disclosure on their record for incidents such as bankruptcies, client complaints or a criminal record. Information on what disclosures are on an advisor’s record can be found online, but this isn’t something they are likely to broadcast on their own public-facing profiles.

    By researching whether an advisor has a disclosure (and what that disclosure means), as well as comparing advisors’ services, fees, assets under management and client ratios, investors can ensure they’re working with someone they can trust rather than just selecting the first advisor they meet with.

    4. Diversify in stocks you understand

    Diversifying your investment portfolio is key to mitigating risk. Investing in an individual stock — even if it is currently performing well — is extremely risky. No one can predict the market’s future with 100% certainty, and if the company you invested in goes bankrupt or suffers another major setback, you would stand to lose a lot. Investing in multiple companies across a variety of industries helps reduce the overall risk associated with your investment.

    As part of this, you should also make sure that you understand what you’re investing in. Cryptocurrency saw a flurry of investments in 2021, even though a lot of investors didn’t understand what it was for or how it worked. Then, in 2022, FTX and several other major cryptocurrency companies collapsed. Cryptocurrencies experienced a significant loss in market cap, causing many people to lose money.

    By investing in things you understand, you can better assess if they will provide a stable source of returns or if they are a risky investment.

    Related: 3 Major Advantages of Investing In Startups

    5. Be consistent

    Contribute to your investment accounts often. Even if you can only put aside a small amount at a time, regular investments will give you more opportunity for growth through compounding returns. The earlier you can put your money to work, the more time it has to grow.

    You can streamline this process by setting up automatic deposits from your checking or savings accounts into your investment account. You can even choose which stocks or mutual funds you want the automatic deposit to go to. This way, you won’t have to worry about forgetting to make consistent contributions, timing the market or other short-term worries that could keep you from achieving long-term gains.

    Invest with confidence

    The S&P 500 has delivered an average rate of return of 10% per year — well above what you can get from a savings account. First-time investors who avoid common mistakes and are wise with how they allocate their funds can start growing their wealth, even if they have relatively little to invest. The sooner you start, the more you stand to gain.

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    Lucas Miller

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  • 5 Overlooked Sources of Income for Extra Cash

    5 Overlooked Sources of Income for Extra Cash

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    Opinions expressed by Entrepreneur contributors are their own.

    Every business will, at some point, experience stagnant sales. When this happens, it may seem like the only way to increase sales is to take drastic measures requiring more time and energy. If you’re a small business trying to get to one million or maybe even five or ten million, ideally, you should have a strategy to reach those numbers. This is how large companies do it. They set sales goals and plan the exact roadmap from point A to point B.

    Several years ago, when I set out to reach my first million in annual revenue, the way I approached business growth was like this: If I could make $100 per day, what would it take to get to $150 per day? So, the approach was to try and make a little more money over time gradually. But this is not always easy because, as I mentioned earlier, many entrepreneurs feel like they’ve reached their revenue potential. Sometimes, finding creative ways to make more money can take time and effort.

    Before separating from the Air Force, my online business averaged about $300 daily, selling digital products. Later, I began selling exercise equipment and sporting goods. But at some point, I wanted to average $500 per day. I successfully reached that, then tried to grow the business to $1,000 daily. I achieved that, then felt it was possible to make $2,000 daily. Surprisingly, I did that. Ultimately, the business made it to an average of $3,000 daily, approximately one million annually.

    How did I do it? I found new leads. In addition to my website, there were five sources of revenue that had a significant impact on my business.

    1. Craigslist

    The first hidden source of cash was Craigslist. It started when I would list used or returned items still in good shape. I had so many leads from the website that I eventually listed just about anything popular: new and used products. The cool thing about Craigslist is that any classified listing also serves as an advertisement. I included the company name, physical address and phone number in the footer of all ads. My business saw the entire spectrum of customers, from high school coaches to law enforcement officers. New customers also meant new referrals. Craigslist was an invaluable source of revenue.

    Related: Marketing Your Business On Craigslist

    2. OfferUp

    The second overlooked source of income was OfferUp, another classified ad marketplace for new and used goods. Ironically, one of my Craigslist customers suggested I try OfferUp. At the time, it was a newer mobile app, and I was surprised I had not heard about it.

    As a test, I listed a few items and received several inquiries on the same day. OfferUp had a few features that gave it an edge over its competition by facilitating payments and nationwide shipping. This was a bonus because it made my products nationally accessible instead of just local. The app was a high-quality lead generator and a recurring source of revenue for my business.

    3. Facebook Marketplace

    The third hidden source of income was Facebook Marketplace. Existing Facebook users can post just about anything for sale and have it shown to a broad audience. I estimate that there were no less than ten daily inquiries for a given item. As a dealer with an endless supply, I would sell the same item repeatedly. Facebook Marketplace was an excellent source of supplemental income.

    Related: How to Make Social Media Marketing Effective for Your Brand

    4. Letgo

    The fourth source of income that I unearthed was Letgo. Whenever you can make money without spending any, it’s always a plus. While less of a revenue generator than the resources above, Letgo served as a powerful sales generator. For most sellers, it is free to list an item for sale on the app.

    5. Etsy

    The fifth and final hidden source of income was Etsy. The website features handmade, vintage and craft supplies sold by individual sellers. You will not find classified ads on Etsy because they only sell new products. Although, new products are sometimes made from used or recycled materials.

    I discovered that certain items already in inventory could be repurposed and sold on the platform. Etsy’s business model is similar to other sites that take commissions once an item sells. Because of the sheer volume of users, I would have to say that Etsy was always a source of consistent, predictable revenue.

    Before increasing my presence on these five platforms, I sold products exclusively online via my main website. I also had a warehouse location for distribution, but it was not always open to the public. At some point, I adjusted and opened a small showroom where customers could retrieve will-call items. When business was slow, I tried posting classified ads. When ad respondents arrived to pay for an item, they almost always purchased additional items. This is where I saw an opportunity.

    Related: 5-Minute Mentor: How Do I Get My Products In Front of Customers Online?

    Eventually, I was able to open a 4,000-square-foot retail store that was highly successful. But it all started with a simple challenge: solve the problem of stagnant sales. My business experienced dramatic levels of growth when I took proactive steps to find new leads. In the end, getting more eyes on my products was the key to success. I did this by taking advantage of classified ad websites, mobile apps and other resources that ultimately served as free advertisements for my business. It was one of the best decisions I’ve ever made because it exposed my products to new customers, translating into more sales.

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    Justin Leonard

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  • 4 Holiday Side-Hustles for Extra Cash

    4 Holiday Side-Hustles for Extra Cash

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    Opinions expressed by Entrepreneur contributors are their own.

    The holiday season is such a busy time that you might not think of taking on a side hustling gig. It’s the perfect time to do so because you are not the only one whose time is stretched to the limit. Everyone is going in ten directions at once; now’s your chance to step in, lend a hand, and make some excellent side-hustle money. Maybe you’d like to earn for that weekend getaway during the cold winter months or pay off those smoking-hot credit cards after your busy shopping season. Let’s look at some tremendous seasonal side hustles that also let you enjoy the fun of the holidays.

    Related: The Holiday Season Means More People Take on Side Hustles — the Difference This Year? They Don’t Plan to Quit Anytime Soon.

    1. Take your e-business live at a show or festival

    The holiday season is bustling with craft fairs and shopping festivals. Here’s your chance to combine a side hustle with valuable business research. My company, Hollywood Sensation Jewelry, has been an online business from the start. This year, my ingenious husband Anthony Hood suggested we participate in the Sunset Market, a huge outdoor market in Oceanside.

    Quite economically, we rented a booth, set up a tent and spent four hours selling Hollywood Sensation merchandise in public. I admit I had doubts about whether this would work for us, and I was even nervous about the public interaction. But, if you’ll forgive the pun, the results were sensational! We sold more than enough to offset our expenses. More than that, however, we got live feedback from real customers with whom we could speak one-on-one.

    If you have a product you’ve never taken out of the e-store, check your community calendar for upcoming festivals, conventions and fairs to get in on a new revenue stream and free market research. The cost of renting a booth will vary depending on the popularity and turnout of the event. I recommend starting small and scaling up if things go well. Be certain that you select an event that jibes with your brand. We might not want to take Hollywood Sensation Jewelry to a plumbing expo, but that sunset beach atmosphere was perfect for some glamor.

    Related: Unlike Many Things That Are a Lot of Work, Trade Shows Are Worth It

    2. Take your skills to the masses

    Do you have a knack for holiday décor? Fancy gift-wrapping? Event planning? Delectable baked goods? Well, not everybody does, and that’s why they need your services, especially at this time of year. Maybe you have a holiday cake or cookie recipe that gets rave reviews everywhere you go. Let folks at the office potluck and the church social know you’re available to bake one for them, too.

    Utilize social media to get your name out there as someone who can put up a beautiful Christmas tree (indoors or outdoors) and otherwise deck the halls. And don’t forget – while many people love to decorate for Christmas, almost no one loves taking it all back down again. Are you willing to do the untangling, repackaging and boxing of all that holly and mistletoe? Maybe you have a pickup truck and can haul away trees for responsible disposal.

    Sites like TaskRabbit.com let you create an account as a helping hand for a limitless variety of tasks and get customer reviews to build your reputation and bring in even more business. For example, TaskRabbit offers the following average costs for these services: “Party Clean Up” for $49-$80, “Toy Assembly” for $40-$99 and “Christmas Decorating” for $48-$86. You can even get paid to stand in line for someone else. I am not kidding!

    Related: 44 Profitable Ideas to Make Extra Money on the Side

    3. Reap the perks of a seasonal job

    Stores and delivery businesses always seek reliable help for the season. Showing yourself as an excellent seasonal employee means you can almost certainly be welcomed back the following year. And don’t forget – many stores offer their regular employee discounts to seasonal workers. If you’ve got your eye on an expensive purchase, you might get another 10% or more off the cost. My friend worked for five weeks at a home furnishings store and saved his family a bundle on new flooring and a refrigerator.

    Here’s another option: party companies are slammed this time of year, and they need people to prep, decorate, serve, check in guests, take coats, valet cars, conduct table games and clean up afterward. I have a friend who deals blackjack at holiday parties and enjoys it. She attends several fancy parties each year, hears the bands, meets fun people who are all having a great time and gets paid for doing it.

    Seasonal job salaries depend on your location, but here are some examples. On average, delivery companies pay about $16.00 per hour, warehouses about $13.80, and store gift wrappers earn around $12.00 an hour. When applying at retail stores with an eye on purchases, ask if their employee discount extends to seasonal help.

    Related: Start an Amazon Side Hustle and Earn Extra Money

    4. Be a sitter

    What do the holidays bring besides good cheer? Travelers! People have places to go and things to do, whether for an evening party, a busy shopping day away from the children or two weeks out of town. Ease their travel stress by being the person who holds down the fort. Reliable and friendly childcare, eldercare, housesitting and pet care take a load off everyone’s mind.

    It’s a relief to know someone is there to keep an eye on the house or check in on older relations to ensure all is safe. Once more, multiple gig websites let you register as a sitter (check out Rover.com or Care.com, for example). Or, get established in one neighborhood as a terrific house — or pet-sitter, and you’ll get more offers. Word gets around on the homeowners’ websites fast, and having multiple gigs in the same neighborhood adds to your convenience.

    Enjoy your holidays

    A holiday side hustle is more than just a way to supplement your income. Getting out into the holiday atmosphere is a great way to enjoy the season’s spirit, ease the stress for others and help create wonderful memories. Of course, giving is better than receiving, but if you can do both simultaneously with a holiday side hustle, that’s quite a reason to celebrate.

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    Mary Hood

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  • 6 Tempting Investments To Avoid

    6 Tempting Investments To Avoid

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    Opinions expressed by Entrepreneur contributors are their own.

    As investors, we’re often told to be active and diversified. But are some investments not worth your time or money? Indeed, certain types of investments should be avoided at all costs. Here’s a list of common financial products and how they might affect your portfolio.

    1. Whole life insurance

    Whole life insurance costs substantially more than term insurance. Whole life premiums are typically much higher than term premiums, and the cost of whole life policies can be even higher for older individuals. It’s also important to note that since whole life policies cannot be cashed out, you can’t use them as collateral if you decide you need money from your investments in the future. Additionally, if someone dies before their policy expires (which often happens with whole life policies), their beneficiaries only receive a fraction of what they were expecting because of how much this type of insurance costs.

    In addition to these issues with cost-effectiveness and liquidity, whole life insurance also offers fewer death benefits than other types of investments due to its nature as an annuity contract instead of a mutual fund or stock portfolio; this means that there won’t be any growth potential after purchasing your plan which would otherwise come from investing in other funds or stocks over time.

    2. Low-interest saving accounts

    A low-interest savings account is an investment you can make with money that you don’t need to use immediately. Savings accounts are generally insured by the government and offer a slight interest, which is often lower than inflation. These accounts are not liquid, meaning you cannot withdraw your savings without penalty if you need them for something else. They also have high fees attached to them and may even charge high minimum balances if you aren’t putting enough money in there every month. Furthermore, since these types of investments don’t earn much interest on the cash inside them, they may lose value over time due to inflation.

    Related: How Generation Z Can Jump-start Savings (Advice Anyone Can Use)

    3. Penny stocks

    Penny stocks are low-priced shares of small companies that trade over the counter rather than through an exchange. They can be risky investments because they aren’t regulated by the Securities and Exchange Commission (SEC). This means that penny stocks are not required to follow the same strict rules as other investments, which makes them more likely to be scams.

    Penny stock investors don’t have many options for selling their shares — penny stocks typically don’t trade on any of the major exchanges where investors can sell them for cash. If you want to sell your shares, you’ll usually need to find someone who wants them badly enough that they’ll accept less than market value. And since most people have no idea what these “spare” shares are worth, it’s easy for folks posing as brokers who say they’ll buy your shares at an inflated price (or even just a flat rate) without even checking if there’s any demand for those particular shares on an actual exchange somewhere else in the world.

    Related: 5 Things Millionaires Do That Most People Don’t

    4. Gold coins

    Gold coins are not a good investment. They’re essentially just a store of value, like other precious metals. While some people may see this as an advantage in that it can be bought and sold easily (which is true), it does not generate income as stocks or bonds do — and it can also lose value if gold prices go down. If you want to buy something tangible, buy silver instead: It’s cheaper than gold on an ounce-by-ounce basis, has more industrial uses (such as being used to manufacture electronics), and has been less volatile over time than gold has been.

    Related: Why It’s Never a Bad Time to Invest in Precious Metals

    5. Hyper-aggressive growth mutual funds

    A hyper-aggressive growth fund invests in companies with high growth potential. These funds tend to invest in risky stocks, meaning they could quickly lose value if the company’s stock price falls or the economy goes into recession. The risks of these types of funds are twofold: first, there are times when the market will crash, and your investment will be lost entirely; second, even under normal conditions, you may see an overall loss over time because these types of investments tend to fluctuate in value more than other investments (like bonds). If you’re looking for an aggressive option with a chance of making some serious money, consider an aggressive growth fund instead.

    6. Complex private limited partnerships

    There are some types of investments you should avoid at all costs. One such type is a complex private limited partnership. These investments are dangerous because they often have hidden risks that can lead to significant financial losses. A good example is the Madoff Ponzi scheme, which ended with many investors losing their savings.

    Another reason you should avoid these types of investments is that they involve high tax implications, which can be challenging to understand and may require professional assistance from an accountant or other expert to comprehensively comprehend the tax laws governing them. Some companies may also try to sell you investment opportunities with very little information about what exactly it is that they’re offering. These products are often sold by unscrupulous individuals who will take advantage of people’s lack of knowledge about financial products to make quick cash off their victims’ backs without ever completing any work on their behalf (which means no profits).

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    Christopher Massimine

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