Posted on: January 26, 2021 | Investing
The stock market is confusing and unpredictable to many people. Unpredictable highs and lows have made many investors consider creative investment ideas outside the stock market. If you’re wondering about how to save for retirement or another big expense, but you’re uncertain about stock markets, these 7 creative investments might be for you.
Creative Investment Ideas Outside the Stock Market
According to the New York Times, 84% of all stock ownership in American belongs to the wealthiest 10% of Americans. That includes accounts like pensions, retirement funds, mutual funds and savings programs. About half of all American households don’t invest in the stock market at all. If you’re considering creative investment ideas that aren’t in the stock market, you’re not alone. While any investment is affected somewhat by the overall state of the economy, these investments are unlikely to experience such dramatic swings, and why they react the way that they do will be more apparent.
1. Your Own Small Business
When you invest in your own small business generating passive income, you’re investing in yourself. Invest in a recession-resistant industry and your business won’t fall victim to the ebb and flow of the economy like so many others. Starting an ice and water vending machine business is a great way to invest in equipment and generate passive income without taking time away from your day-to-day activities. You can manage this business remotely and you don’t even have to take time to restock.
Ice and water vending sales increased during a recession
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2. Friend’s Small Business
If a close friend or family member is starting a business and you believe in their business-savvy skills, this can be a good opportunity for you as well. Invest in their venture and write up a solid contract that you can both agree on. This should include clear terms about how you’ll be paid back, when, and how much. You’ll be able to keep a close eye on the business and your investment, though be careful not to micromanage your friend.
3. Equity Crowdfunding
You’ve probably heard of crowdfunding, where you can sponsor the launch of a new product or creative venture in return for a reward. Equity crowdfunding is similar, except you can sponsor the launch of a business in return for a small share in that business. Savvy entrepreneurs will post business plans and other documents to show you their plans for the business, their experience, and more. If you find a business idea especially compelling or likely to succeed, you can invest and earn a return in the future as the business grows.
4. Peer-to-Peer Lending
Peer-to-peer lending is similar to equity crowdfunding, except you’re giving another person a loan, instead of buying a small stake in their company. Just like any online investment, it’s important to do due diligence and make sure your money is going where it’s supposed to. While there’s always a risk that your loan won’t be repaid, you’ll also have a chance to grow your investment over time.
Land is a popular alternative investment idea because it’s a tangible asset. No matter what happens with the rest of the economy, your land won’t shrink or change. There are also many ways to make money from land of all different types. Just because you can’t break ground on a particular parcel doesn’t mean it isn’t worthwhile.
6. Alternative Assets
Many people are turned off by stocks because they aren’t sure what they’re actually buying. If you share this opinion, you might enjoy creative investment ideas in alternative assets, like gold, diamonds, or even artwork and collectibles. Investing in desirable objects can also be a fun pastime if you enjoy bargain-hunting, collecting and speculating.
Most of us missed the opportunity to invest in web powerhouses like Google, Yahoo, and Facebook, but a website doesn’t need a billion-dollar valuation to be a creative investment idea. If you have an eye for creating great content and leveraging the power of the internet—or you know someone who does—you can buy a URL, grow it, and sell it later, just like you would with a business. There are many ways to invest in websites and generate income, including advertising revenue, website flipping, or even developing a URL you think will become popular.
The stock market isn’t the only way to invest. With the right creative investment ideas and a bit of research, you can avoid the turbulence and uncertainty of the stock market, while still making sound financial decisions. Consider all angles carefully and decide which investment makes the most sense for you.
Invest in a Recession-Resistant Business
Become an owner of an ice and water vending business, and invest in a need—clean water and ice—that will always be in demand.Learn More