The stock market can be unreliable. Investments are risky, going up and down at the drop of a hat. Thankfully, there are alternate modes of investment where you can see great returns on investments and partake in exciting industries. Here are just a few of those unique ways to invest outside of the stock market.
Buy Into a Franchise
A great way to invest in a business without investing directly through the stock market is with a franchise. For example, you could invest in McDonald's or the companies associated with it, or invest directly by opening a franchise. This strategy is a great way to get into a business without being a startup. Some of the benefits are the established name recognition, support from the respective companies, and the lower operating costs because of their established relationships with partners. In addition, there is a support system in place for when your specific location could be struggling.
This investment strategy is very lucrative, which is why many celebrities have decided to dip their toe into the industry and buy into franchises. One of the most well-known is Shaq, and he has a diverse array of restaurants, carwashes, movie theatres, and fitness centers all under his name. Working with franchises is a great way to invest your money, and if you choose to go this route, don't be afraid to invest in a lot of business. You will have help from the parent companies as well as the banks and the Small Business Administration.
Cryptocurrencies
This investment strategy works somewhat like the stock market as it is incredibly volatile and built on speculation, but it might be nice for a long-term investment. There have been high highs and low lows in the last few years, but currencies such as Bitcoin and Ethereum have steadily increased in value when you step back and look at the market summary.
On top of these currencies, there are many others that you can invest in. Understand, though, that this market is incredibly new. Legislation with it will change as time goes on, and there is no established precedent for understanding too much of how it will change in the future. Do not put all your eggs into one basket with this list. It is simply a way to diversify your portfolio with investments outside of the stock market.
Vacation Homes
If you have a lot of disposable income, a great investment strategy you may want to consider is purchasing a vacation home. It may seem as if this is a purchase where you won't be able to see any money at the end of it, but that is certainly not the case. A vacation home can be available for you to visit whenever you want, and in the offseason, you can rent it out when you are not using it. Services such as VRBO and Airbnb are more popular than ever as people would rather spend time in a home than a hotel, and your home can be that for them.
Renting out your home is a great way to cover the cost of the real estate, and as time goes on, those rental prices will increase along with inflation and the rise in the overall value of the housing market. This means that not only will you be able to enjoy a vacation home while it pays for itself, but soon you could sell it for much more than you paid for it. If you like this investment strategy, you could even buy multiple properties. Houses in the mountains and the beach for you to enjoy whenever and make your money doesn't sound like a bad idea.
Create Your Own Business
This investment strategy can be more complicated than others, but it gives you a chance to do something incredibly unique and get your own ideas out there. Many like to invest in businesses that they feel represent them, and you can cut out this middle person and invest in yourself. There are an incredible number of businesses you can start, and all have different startup requirements and ongoing costs. All you need to do is find the right industry you want to partake in.
If you want something that has a lower startup cost, you can look into online or virtual businesses like IT support or web design. You could also create brick-and-mortar storefronts such as education centers or craft shops. If you are into food, start a restaurant, a hot sauce company, or even a food truck!
Invest in Art
One of the most unique ways to invest your money while still being able to show off your personality and tastes is by investing in art. Art is an asset that typically grows in value, and as they are creative works, what you purchase will either be one-of-a-kind or part of a very limited run. Of course, quality art will grow in value over time, but you will also get to have the art in your home where you can add it to your collection or serve as a talking piece when you have guests over.
Art grows in value over time for a variety of reasons. One reason why it will be more valuable is its age. This is because older pieces tend to hold more value than their modern counterparts. Another reason why art can grow or even skyrocket in value is because of the artist. If you've purchased a piece from a smaller artist, and then that artist grows in popularity, the piece you bought will be one of their first works, and collectors will love to get their hands on it. As a result, these art pieces hold a lot of esteem and value in the art community, and your investment will have grown significantly from when you first bought the piece.
These were some of the more unique ways to invest outside of the stock market, but many more are just waiting for you to discover. Whatever you do, whether it is investing in real estate or art, just be sure to do it right. Make sure you're not investing in just anything, but items and people that are reputable, like Jesse Nusbaum. One of my bronze panther sculptures is a great investment as it is part of a limited run, and as time goes on, art appreciators will value the craft that went into its details even more.
