It seems as though more and more people are becoming interested in investing. I’ve learned a lot about it myself and wanted to share what I’ve learned. This is what I think is the 3 best investments to make money in 2020.
Good Investments For Beginners
If you’re new at investing, or don’t have a whole lot of capital, there is one investment I would recommend for 2020. I believe it is the best way to make money, especially for a beginner.
It is investing in dividend stocks or ETFs. It’s easy to get into the stock market nowadays because many brokerages offer $0 commission trading. They also have great apps that are easy to use. For a beginner, I recommend trying out Robinhood.
The reason I think its the best investment to make money is because it’s a good defense against a recession. Let me explain:
The market tends to correct itself every 10 years and the last correction was in 2008. We are past due for a recession. Why does this matter? Well, there are statistics showing that dividend stocks perform better than non-dividend stocks during market crashes.Comparing dividend stock to non-dividend stock during the 2008 market crash
This is why dividend-paying stocks perform better during a recession. It’s also why it is becoming more and more popular and why I believe its one of the best investments to make money in 2020, especially for beginners.
Where to Invest Money to Get Good Returns
Maybe you’re a little more advanced with investing. Or maybe you have more capital to play with. If this is the case, you may want to look into real-estate investing.
I wouldn’t recommend trying to flip houses. You could make money with this, but It’s extremely risky. I think flipping houses is also a bad idea with the current market because many experts say there may be a housing market collapse at any time.
That doesn’t mean you shouldn’t invest in real estate though. Many people are making lots of money with real estate. One of my favorite YouTubers, Graham Stephan, has about $6,000,000 tied up into real estate. He doesn’t flip houses though, he buys them for the long term, and rents them out.
What makes real estate so good in 2020? One of the big reasons it’s so popular right now is because of the low-interest rates for a mortgage. You can currently get a mortgage with about a 3% interest rate if you have decent credit.
Another reason I think it’s one of the best investments to make money is that if the housing market happens to collapse, rental prices tend to stay the same. This is because a lot of people get scared and sell their house, which means they now have to rent. therefor there are more people renting and fewer houses available, basic supply and demand.
Best Way to Invest Money
The last investment strategy, and what I think might actually be THE best investment to make money in 2020. That is to invest in your education. Here is a popular education quote:
“Education is the passport to the future, for tomorrow belongs to those who prepare for it today.” – Malcolm X
You can never go wrong investing in your education. One of the biggest example and a huge inspiration for me is Graham Stephan. He invested about $40 to get his real estate license. That small investment has generated him millions of dollars, and now he makes over a million per year! What other investment could ever come close to this?
3 Best investments 2019 and 2020 Summary
Dividend-paying stocks or ETFs
Real estate (Rental income NOT flipping)
Education