The years of COVID quarantines and the turbulence that followed are starting to recede, somewhat. And, in fact, the pandemic has left us with some valuable lessons, such as the importance of putting aside money for a rainy day.
One way to extra income to put aside for the future is through smart investments. For example, you might invest in real estate, the stock market, or a local business.
Here are six different business investments you can make in 2022 to help boost your income.
- Real Estate
Real estate investments can be a wise idea because the value of the property can increase over time. In many areas of the country, the demand for new homes and apartments is higher than the supply, and new properties aren’t being constructed quickly enough to satisfy the demand. This can help your property retain its value.
There are five types of real estate investments:
- Residential
- Commercial
- Industrial
- Land
- Special Purpose
Regardless of which type of real estate you invest in, you’ll have the option of upgrading the value and reselling it or renting it out. You can also purchase property in an increasing market, hold for a few months and sell it for a profit.
- Vacation Rentals
Vacation rentals are technically a type of real estate investment, but this is a more niche way to grow your income.
The vacation rental industry has been growing in the last few years, making this type of investment extremely valuable. COVID may have something to do with this fact, as some travelers eschewed multi-room hotels for the isolation and perceived safety of the vacation rental.
You may not have to buy a separate property in a vacation destination to get in on the vacation rental market, either. For example, homeowners in some areas may find that they can make a profitable income by renting out their home to vacationers while they’re away.
- Dropshipping Business
Dropshipping is a great money-making idea because you don’t need a large amount of cash to invest, and you can easily manage it from your home.
Dropshipping involves selling products on a website in collaboration with a supplier—often, a wholesaler or manufacturer. When a customer makes a purchase from your site, the supplier ships the product directly to the customer for you. That means you don’t need to stock any inventory or to worry about buying products in bulk.
A few products that have seen success in the dropshipping world in 2022 include:
- Electronics
- Clothing and shoes
- Furniture
- Hobby items
- Commodities Investments
Commodities investing involves investing in essential raw materials that businesses sell and turn into goods. Commodities are resources such as:
- Energy: Oil and gas
- Metals: Gold and lithium
- Agricultural products: Wheat and beef
These are just a few resources that are essential to keep the economy running. Because of this, when supply is tight, prices rise, causing companies producing those items to receive greater profits. Consequently, investors also receive better payouts.
Some of the top commodities to invest in in 2022 include:
- Energy
- Precious metals
- Industrial metal
- Fine wine
Commodities investments can be risky, since a geopolitical issue, drought, or other natural disaster can affect supplies. However, perhaps the biggest benefit of investing in commodities right now is that they tend to protect against the effects of inflation.
- Buy Cryptocurrency
Investments in cryptocurrency are another popular investment option for 2022. The cryptocurrency market is constantly growing, with new digital currencies popping up every day.
This industry is volatile; investors’ interests shift and a coin can rise to the top today, leading to big rewards. However, it’s also impossible to predict what will happen, and that is what makes this investment a high-risk gamble.
Still, if you play your cards right, you can profit by buying and selling at the right time.
A few of the top trending cryptocurrencies in 2022 include:
- Lucky Block
- DeFi Coin
- Bitcoin
- Ethereum
- The Healthy Food Industry
Thanks to the aftermath of the pandemic, working out, eating right, and taking care of our bodies have become even more important. And, as an investor, this opens up a unique opportunity.
There are many ways for you to take advantage of this trend, such as investing in:
- Healthy food trucks
- Vegan and vegetarian businesses
- Contactless delivery services
- Pre-cooked meal plans
These types of businesses are likely to see increased growth in the coming year. That could make them a good opportunity for those looking to earn a healthy return on their investment.
Take a Risk and Invest
Investing is a major decision—it’s not one you should take lightly. This is where you’ll be placing your hard-earned cash, after all, and results aren’t guaranteed. It’s often best to start small and to avoid putting all your money into one type of investment.
However, with these six ideas above, you have a place to start. Do your research, assess your current financial situation, consult with a financial advisor if you have one, and make the best decision for your needs.