Best Investments on a Budget

B Y
W W W . P R O F I T A B L E I N V E S T I N G T I P S . C O M
Best Investments
on a Budget

https://profitableinvestingtips.com/profitable-
investing-tips/best-investments-on-a-budget
The stock market keeps going up and
widening the wealth gap in America. So many
people are living paycheck to paycheck that
finding money to invest can be difficult.

But, it is not impossible in this day and age to
put something aside on a regular basis. With
this thought in mind, what are the best
investments on a budget?

The Problem with Investments in America

Both home ownership and ownership of
stocks have declined since the Great
Recession and have not recovered as
expected.

Financial Samurai looks at the percentages of
Americans who own stocks or real estate.

Now that the economy is on fire, all
Americans should be rejoicing in their wealth,
right? Wrong! Only 52% of Americans own
any stocks according to a 2019 Gallup poll
and only about 63% of Americans own real
estate according to the Census Bureau, down
from a high of about 69% in 2004. Given
these figures, the bull market has left a lot of
people behind.

Back in 2007, 65 percent of adults owned
stocks and today that number is 52 percent.
Part of the reason is that many who got
burned in the 2008 market crash have never
re-entered the market.

But, a greater factor is that small investors
have been unable to take part in the steady
appreciation of stocks over the last dozen
years because they are just making ends
meet.

Our concern in this article is not the folks who
have money and choose not to buy stocks (or
real estate) but rather those who are living on
a budget and are not investing.

While the stock market is an excellent place
to grow wealth, the first place that Americans
should and do invest is in their home.
Unfortunately, home ownership took a hit with
the Financial Collapse as well.

More than 69 percent of Americans owned
their home in 2007 and that number is below
64 percent today.

Investing in Your Home

Whenever we have written about starting to
invest in the stock market, we have always
mentioned home ownership as a greater
priority. The Federal tax deduction for
mortgage interest still makes home ownership
a great investment.

And, unlike trying to find money to invest in
stocks, Americans are already paying for
places to live. Getting out of the rental market
and into home ownership is still one of the
best investments on a budget.

Investing in Stocks

The point of investing in stocks is that over
the years and decades the US stock market
outperforms other investments.

The key for most people to take advantage of
this fact is to choose investments for the long
term and not to try to time the market.

Dividend stocks that have been paying
dividends for decades or even more than a
century are good choices.

And using dividend reinvestment plans allows
you to reinvest dividends without paying
commissions and let your money grow even
when you cannot purchase more shares.

The key to making the best investments on a
budget is to use dollar cost averaging to put a
set amount into investments every year,
quarter, month, or paycheck.

For more insights and useful information
about investments and investing, visit
www.ProfitableInvestingTips.com.

Best Investments on a Budget

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Mehr von InvestingTips

Mehr von InvestingTips (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Best Investments on a Budget