The Penny Hoarder

Stocks aren’t always the best option for a big return on your investment. A lot of people are confused and overwhelmed by the stock market but think of it as the only way to get ahead with an investment portfolio. Luckily, that’s just not the case, and there are numerous other ways to build up a nest egg without stocks. Here are a few!

Invest In T-Notes

A T-note or “Treasury Note” is a safe way to invest money because the interest is guaranteed by the “full faith and credit” of the U.S. government. When you buy a T-note you are buying it for below face value. This means that you receive a set amount of interest per year for the life of the T-note. You might collect 3% interest per year on a ten-year T-note and at the end of the term cash it in for $1,000.

Buy Up Properties Like Monopoly

Owning real estate will put money in your pocket, as long as you aren’t running yourself dry with repair costs and you have tenants consistently renting from you. There are many types of properties out there you can purchase, including apartment buildings, condos, storage units, car washes, and offices. Of course, owning real estate comes with its challenges, but if you’re willing to step up to the plate, the payout is worth it.

Peer To Peer Lending

Peer to peer lending is as simple as it sounds. Basically, you will lend money to a peer and get paid on the interest rate. Often times, the borrower will pay a lower interest rate than they would at a bank. Peer to peer lending can be beneficial for both parties because the lender can have a high return.

Build A CD Ladder

Certificates of Deposits (CDs) are also a safe place to invest your money. You can maximize your earnings by creating a CD ladder. If you have $15,000 to invest, instead of investing the whole amount in one CD, you can invest it into several CDs with increasing maturity dates. When the first term is ending, you can take the original investment plus the interest gained and re-invest in a new 5-year CD.

Protect Your Money With U.S. Securities

You might not get rich, but you will protect your money during times of economic turmoil. There are four types of U.S. Securities you can buy and hold through the Treasury’s Direct Portal: bills, notes, bonds, and Treasury Inflation-Protected Securities. These securities collect interest every six months to one year and could be worth the initial investment in a few years.