Investing is the smartest financial decision you can make and you need to make smarter money investments. Whether you make smarter money investments in a service that increases an asset’s value or are looking for a new business venture, investing is how you make your hard-earned money work for you. You can invest your money in various industries and ways depending on your available funds, long-term financial goals, risk tolerance, and investing style. To give you guidance, here are some smart money investments to consider.
The vehicle industry is one of the most complex industries to make smarter money investments in. Whether you’re looking to replace your old car or it’s your first time buying one, you need to take a step back and think it through. Although a vehicle will improve the quality of your life, it’s often not classified as one of the smart money investments since there’s no good return on investment. Tim Maxwell says your vehicle can lose up to 20% of its value within the first year of ownership.
This shouldn’t discourage you from investing in a car because the truth is, it is an essential asset to have. However, in terms of ROI, you shouldn’t have high hopes. So, how do you ensure you make a smart decision when investing in a car? Consider a used vehicle as smarter money investments.
Data from insurance companies show that cars lose 20% of their value in the first year and another 15% in the subsequent four years. By the time it hits the five-year mark, depreciation starts to slow down. A car whose initial price was $35,000 may cost $17,500 after five years.
People are often skeptical about investing in used cars because they fear inheriting someone else’s misfortunes. However, it’s a smart investment that’ll ensure you save money on vehicle purchases, but only when you use the right approach. The make of a car also matters when buying a used car.
Some brands tend to lose value faster than others. If you’re in the market for a used truck, you should consider investing in a used Ford F150. The Ford Motor Company is widely known for making reliable vehicles that hold their value.
2. Real Estate
The real estate industry in the United States is one of the most lucrative industries to invest in. According to U.S. Residential Real Estate Analysis, as of 2023, the market size is estimated at $2.53 trillion. It’s projected to reach $2.80 trillion by 2028. Despite the severe impact of Covid 19, the industry was able to bounce back within no time. Therefore, investing in real estate is one of the smart money investments to consider.
There are various ways of investing in the real estate industry. Almost everyone can become a real estate investor with enough cash, time, and patience. One way to invest in the industry is by buying your own home. For many Americans, becoming a homeowner is one of their top priorities. Although not a smooth ride, you get to enjoy the benefits of great ROI in the long run.
Another way of investing in the real estate industry is by flipping houses. Would you like to sell your house? Why not think of it like a business? According to Lynette Westin, flipping houses is a great real estate investment strategy that will see you make a 26.9% profit on flipped houses. However, flipping houses comes with its share of cons. Analyze each of them to ensure a successful business.
3. Automated Business
With the advancement of technology, automation has become a game changer in how businesses operate. Different organizations across different industries have recognized the power of automation in increasing productivity and efficiency and ensuring the overall success of a business. With that said, automated business is one of the smart money investments to make in today’s world of digital transformation.
It’s an investment that can help generate income with little or no input required. For example, picture this: you’re relaxing and enjoying your time while your business keeps earning profit without you lifting a figure. That’s a dream come true for many business owners, right? Well, that’s the power of an automated business.
Automating tasks has become a priority for many businesses. Take a look at a car wash as an example. According to Tim Miller, most Americans would rather go to an automated carwash than hand car washes. With the right systems in place, automated business is a great investment.
Despite the geopolitical and economic challenges, the art industry remains one of the most attractive smart money investments for people passionate about art. The COVID-19 pandemic was arguably one of the biggest challenges that the industry faced. However, the post-covid period saw a robust recovery in the industry. According to Rebeca Marsham, the industry saw a 29% growth between 2020 and 2021, with estimated sales totaling $65.1 billion. This noteworthy recovery was due to the industry’s wise decision to adapt to technology by shifting to online business.
One notable benefit of investing in art is that it is not susceptible to market fluctuations. Art is a tangible asset that holds its value regardless of inflation. Therefore, it’s a lucrative investment for people looking to preserve their wealth when the economy turns volatile. The different art forms to invest in include paintings, cartoon caricatures, and sculptures.
5. Your Home
Buying a home is not only a dream for many Americans but is also one of the smart money investments to consider. The real estate market in the United States has a long-standing history of increasing in value. While buying a home is a guaranteed successful investment, it’s not that simple.
The imbalance between the demand for and supply of property causes real estate prices to go up. Unfortunately, not everyone can afford their dream location and home. However, you can buy a home within your budget and transform it into your dream home.
If you’re still not comfortable with the location, the changes you make to your home, for example, increasing the number of rooms, adding a deck, or upgrading insulation, will help increase the value of your home if you’re considering reselling or getting into the business of home rentals. The key is to ensure your modifications have the potential to appeal to many people. According to Mike Stenhouse, people tend to be more attracted to a house designed with passion than one whose bottom line is selling and making a profit.
6. Trash Services
Everyone desires to live in a trash-free environment. However, tons of waste are generated daily from organic and non-organic materials. Investing in the waste management industry has recently become one of the smart money investments that business owners venture into. This is a good sign that people have become more conscious of the hazards that may arise due to poor waste management.
If you want to invest in an industry that helps create a sustainable environment and generates tangible income, offering trash services is the way to go when it comes to smarter money investments. According to statistics by Micaela, the annual average turnover for waste management businesses is $376,000. It’s worth noting that not all businesses record the same yearly turnover when it comes to smarter money investments.
Some may be more or less than others due to different factors, including licenses, insurance, rent, and leasehold. Typically, you can expect to spend an average of $324,000 to $456,000 to set up a waste management business. For effective waste management, you may provide a dumpster where trash can be discarded and collected at an appointed time.
7. Tree Companies
Most homeowners don’t pay much attention to tree maintenance. However, it is a vital task that, when ignored, can not only cause property damage but can also result in injuries or even death. Therefore, hiring experts for tree services is one of the smart money investments to consider. Qualified professionals have the skills and equipment to do the job while avoiding costly damages.
With about 82,000 tree businesses in the U.S., according to Treezi, finding the right contractor can be challenging. However, you can talk to people you know to get personal recommendations from contractors they’ve used. Ensure you confirm the certification of the local tree company you’re considering working with. Hiring a certified contractor means you get a professional who takes his job seriously.
A tree service business is also a lucrative business venture for anyone looking to join the business. The industry is currently worth $29 billion, according to Arbostar. Of course, starting a tree service business isn’t a walk in the park. Like any other business, you will need the necessary skills and experience to set up a successful business.
Do you enjoy collecting coins? If yes, you can turn your hobby into one of the smart money investments that generate income. Coins are assets whose value isn’t tied to market trends. Instead, their value is influenced by the law of demand and supply.
Typically, the more rare a coin is, the more value it has. It’s important to note that coin collectors don’t make money from collecting coins. They make money when they sell the coins at a higher price than they initially got them.
To become a professional coin dealer, you need to learn the market. Turning your hobby into a business means treating it as such. Therefore, you’ll need to keep track of your inventory, track all your costs, advertise your business, and record your sales to ensure your business becomes successful.
It also helps educate yourself on what coins make the most profit and which sell the fastest. Make friends with players already in the industry. Their insight and experiences can be invaluable to your new business venture.
The United States has one of the biggest fashion industries in the world. According to Statista, as of 2023, the revenue generated in the apparel market is $351.4 billion and is expected to grow by 2.11% by 2028. If you’re passionate about fashion, you should consider starting a clothing business as one of the smart money investments. According to Forbes, owning a clothing store can earn an average of $48,901 annually.
In today’s world of technology, it has become easy for clothing businesses to sell their clothes online and realize profit to make smarter money investments. Clothing is a necessity. You can be sure people will need to buy clothes at one point. However, you must consider various factors to ensure your business is successful.
One of the most important factors to consider is your niche. Do you want to sell native or Western clothing? Are you going to specialize in formal or casual wear or something in between? When deciding on the type of clothing you want to sell in your store, you need to factor in your passion and the ability to bring something new into the market.
A niche will help your target market identify with your brand and products, making them more likely to buy from your store. The good thing is that you don’t necessarily have to have a physical shop. You can leverage the online market.
10. Plumbing Services
The plumbing system is one of the most important systems in your home. It ensures proper wastewater disposal and a clean water supply throughout a building. Imagine waking up in the middle of the night to leaking faucets and puddles of water all over the house. This is annoying and may cost you huge sums of money to repair damages. Therefore, investing in plumbing services is among the key smart money investments to make in your home.
Unfortunately, plumbing issues are part of owning a home. The problems could result from normal wear and tear of plumbing equipment or the age of the plumbing system. Since these problems are inevitable, the best thing to do is ensure you’re up to date with your maintenance. While there’s no set time for plumbing maintenance, the industry recommends scheduling routine maintenance at least once a year.
It helps to have a contractor who offers 24-hour services to ensure you’re covered should an emergency arise. For example, in the middle of the night, you flush the toilet but notice the water is backing up. You must hire drain cleaning contractors to unclog and clean your drainage system promptly.
Before investing, you must analyze your current financial situation to make smarter money investments. Investing when you have debts and other financial obligations can make your life unbearable. Prioritize your financial obligations before you start putting money away for the future.