Everyone always tells you that investing takes time, and if you’re going to “go all in”, then you need to do it for the long haul. Still, many people have that small voice inside their heads that tells them there may be a way to “get rich quick” through investing in the right things. So, is it actually possible to get rich in a hurry through investing?
For some, the answer is yes. But this makes up a very small percentage of the population, and if you choose to try “get rich quick” schemes to make money fast, you may find yourself in over your head. Here are a few ways to make quick money investing without becoming a day trader.
Sock More Money Away
Sounds ridiculously simple, right? Well, believe it or not, setting aside a large chunk of your income (if you can afford it) is the first step to growing investments quickly. Think of it as seed money – sock away 25% of your income as soon as you get your paycheck and watch it pile up. Then, when you pass the $5000 mark, make an investment.
Don’t add it to an investment you already have; try something new instead. Think CD laddering, stocks, gold or silver, or even a mutual fund. Once you’ve done it, repeat the process with a different kind of investment. Before you know it, you’ll have a diverse portfolio of investments.
Try P2P Lending
One lesser-known (and slightly more risky) investment vehicle out there is online Peer-to-Peer (P2P) lending. Websites like Lending Club and Prosper use a bidding system in which multiple lenders (you and others) throw in money to fund loans for people who have created listings on the sites. People use these sites because they may have had trouble in the past qualifying for traditional bank loans like those offered by net loans. If you spread your money over many different loans, you will reduce your risk and still enjoy a high rate of return in a relatively short period of time.
Think About the Foreclosure Market
Don’t try this one cold. If you have a bit of real estate experience under your belt, then this is one way to grow investments fast. You’ll need a good amount of money saved to get into this market, and once you have it, you can attend bank or tax sales to score a property in need of a little TLC.
Before you try this method out, make sure you do your homework. It’s important to know the laws in your state of residence, the true costs of fixing up a property, and the money you’ll need to spend to get it re-sold. This includes any money you may need to spend on the mortgage while you’re waiting for a qualified buyer to come along. You can make more money by adding more space in your investment property and save money by doing it yourself.
Remember, getting rich quickly is still a process. There are ways to make money faster than traditional long-term investments, but the risk is higher and you’ll need to watch your money like a hawk when you go all in.