Do you want to become an investor?
Perhaps you want to own some stocks, like 55 percent of other Americans. Or you want to venture into real estate and have your own rental units. Or maybe you want to invest in gold and oil.
Whichever your preferred investment market is, investing is an effective way to grow your wealth and retire in great financial security.
The only thing stopping you? You don’t have enough money!
Well, your situation isn’t uncommon but are you sure you don’t have any money?
Here’s a guide on how to become an investor by freeing up money from unlikely places.
Turn Your Personal Assets into Cash
Over 85 percent of Americans own at least one car.
Over 65 percent of Americans are homeowners.
Do you belong to any of these groups? If yes, you’re probably sitting on a decent stash of cash. You just need to use these assets wisely.
If you’re a homeowner, for example, you could secure a loan against the home, especially if you have a clear title. And even if you might still owe a mortgage, you could still qualify for a home line of credit if you’ve got positive equity in the home.
If you own a car and a clear title, you could also use it to secure a title loan. Getting funds through a title loan is a good way to raise the investment capital you need.
While still on personal assets, it’s possible that you have valuable stuff you no longer use. Think of that old computer or kitchen appliance. Or some pieces of jewelry.
You can organize a yard sale and sell valuable items you don’t use anymore. You’ll raise some money to put into investments that aren’t capital-intensive.
Borrow Against Your Life Insurance Policy
Are you among the 59 percent Americans who have life insurance? Yes? You’ve made a sound financial decision.
However, your life insurance policy isn’t just for your beneficiaries. If your policy has a cash value, you can borrow against your death benefits. The insurance company will lend you the money you need and hold your benefits as collateral.
Use the funds from this loan to make an investment.
Withdraw Funds from Your Retirement Account
Saving for retirement is a vital step everyone should take, for you won’t work forever.
Ideally, you shouldn’t touch your retirement account. However, if you’re looking to become an investor, withdrawing money from the account won’t be a terrible idea.
Yes, you’re taking a major risk and you could incur withdrawal penalties, but if you’ve got a solid investment strategy, the money you take out from your retirement account could spur you to even more money.
Liquidating a retirement account is a big decision, so be sure to consult a personal financial manager before taking the step.
That’s How to Become an Investor!
The richest people in the world are serial investors. If you want to get wealthy too, investing is the way to go. And with this guide on how to become an investor if when you don’t have a stash of cash in your checking account, what excuse do you have?
Keep reading our blog for more investing tips and insights.
