Want to be rich? This Certified Financial Planner says sometimes you need to spend money to make money. It sounds counterintuitive, but it’s true. Here’s how. This was originally published on The Penny Hoarder, which helps millions of readers...
Saving money is great, but it won’t make you rich.
No matter how many dollars you put into a savings account, the national average .05% interest you’d earn won’t expedite your millionaire status.
And cutting your costs can only go so far, explains Certified Financial Planner Robin Hartill (who is also an editor and financial advice columnist here at The Penny Hoarder).
It can definitely help with your short term goals, she says, but if you want to be truly richer, sometimes you need to spend money to make money. By diverting some of your cash into these assets, you’ll be on a faster path to your financial goals.
1. Invest in Famous Art (Even if You’re Not a Millionaire)
Here’s the deal: If you’re not investing in contemporary art, you might be missing out on an asset whose prices have historically outpaced the S&P by 164% from 1995 – 2020. (FYI, the S&P tracks 500 of the largest companies in the stock market)
You’re probably thinking you need at least a few more zeros in your checking account before you can even start thinking about that, right?
But a company called Masterworks lets normal people like us invest in multimillion-dollar works of art — something normally only available to the super rich.
But you don’t need hundreds of thousands of dollars to buy a masterpiece outright; with Masterworks, you can buy shares representing an investment in art..
It takes less than a minute to sign up for a free account.
Investing in contemporary art is a long-term strategy, so patience pays off here — literally. But once your piece of art sells, you get your share of the potential profits.
2. Download This App to Get Up to $500 in Free Stock
If you feel like you don’t have enough money to start investing, you’re not alone. But guess what? You really don’t need that much — and you can even get free stocks (worth up to $500!) if you know where to look.
Whether you’ve got $5, $100 or $800 to spare, you can start investing with Robinhood.
Yeah, you’ve probably heard of Robinhood. Both investing beginners and pros love it because it doesn’t charge commission fees, and you can buy and sell stocks for free — no limits. Plus, it’s super easy to use.
What’s best? When you download the app and fund your account (it takes no more than a few minutes), Robinhood drops a share of free stock into your account. It’s random, though, so that stock could be worth anywhere from $5 to $500 — a nice boost to help you build your investments.
Kari Faber is a staff writer at The Penny Hoarder.
*See important Regulation A disclosures at masterworks.io/cd
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.