Everyone seems to be living in suspended financial hibernation these days. The economy has been in the toilet for quite some time now, but if history teaches us anything, chances are it will bounce back at some point down the line.
Will you be prepared?
Saving for an emergency fund is a critical move at this juncture – job growth is stagnant and people are frightened. Having that backup in place is a more important now than it ever was before. Once you’ve stocked your emergency fund, though, it’s time to put aside money for investments when the economy gets better.
So, what kinds of investments are the best for a transitional, growing economy? Let’s take a look at some of the best investments people can make when things begin to pick back up.
Invest in Your Home
Well, it means investing in your home now is one of the safest ways to house (pun intended) and grow your money. Since housing prices are on the rise, now is the time to buy or refinance – before they reach their peak. If you do, your property will appreciate, and you’ll have an asset that you can truly consider a wise investment.
I’ve always been a huge advocate of american real estate. Even when the market hit rock bottom, I believed. If you stay away from home equity lines of credit and refinance smartly, you’ll always have a solid, tangible asset that will continue to take care of you for years to come.
Yes, property values will fluctuate. But over the long term, it’s still one of the safest ways to park your dough.
Invest in Your Education
People are howling about student loan debt and the dismal job market. However, reports from Washington indicate that job growth is (slowly) rising, which means we may see a completely different picture in a few years.
For those of us in “Generation Debt,” this is a good thing. However, the increase in jobs will still be less than the amount of opportunities out there in decades past. That’s why it pays to be ready by increasing your educational credentials – by getting licensed in a trade or going for an advanced degree, for instance. When you do this, you dramatically improve your chances of gaining meaningful employment once the job market picks back up.
It’s important to turn yourself into a competitive commodity. Investing in your (and your children’s) education does just that, and your lifetime earnings will be substantially more than they would be if you stuck with the bare minimum in educational credentials.
If you thought I was going to discuss the best stock picks, sorry. In this economic climate, it’s important to think long-term and insulate yourself by investing primarily in your home, yourself, and your family.