Since becoming debt free I have realized how much flexible you and your money becomes. My investing portfolio is still mainly in index funds, but once in a while, I set aside small percentages of cash to experiment or learn more about other investments.

Even though I became completely debt free before investing, sometimes people achieve financial freedom through different means as they walk their own journey. In this post, Olivia shares how some achieve financial freedom through investing.  

-Javi

In an article published by Time last year, it was stated that Americans have so much debt that they take it to their grave. The data presented by the online journal shows that at least 73% of American consumers die in debt, and the average total balance left over was at least $61,000. The most common kind of debt is from credit card balances, student loans, and personal loans.

Thankfully, despite the data that shows how deep many Americans are in debt, a lot of individuals are optimistic about eventually getting out of debt. CNBC states that only 12% of Americans expect that they’d take their debts to the grave, which is down by 21% in 2016.

In a survey of 1,000 adults, it was revealed that nearly a quarter of Americans say that they’re debt-free. The respondents also said that they’re now more responsible with money. Around 48% of the participants said they have less debt than their peers, and 72% asserted that if their debt were to be erased, they’d put their extra cash towards savings.

Optimism is the first step towards financial freedom, and, while saving and spending less is key to a debt-free life, there are several options that people can follow in order to have more resources in terms of wealth that can effectively pay off debt.

Building wealth through investing

Financial analysts suggest that people who work on a 9 – 5 job will never be able to pay off their debts quickly. Business magnate Warren Buffet believes this as well, famously saying that if people don’t find a way to make money work for them while they sleep, they will be working their entire lives.

Yet, even if you do have a day job it is still possible to build your wealth through investing your money in different financial vehicles.

Investing in stocks

The Dinero Pro previously published a post on the basics of investing. In it, he discussed what the stock market is, as well as how you can buy stocks. Those who are interested in investment options should read it as it contains basic, but necessary, information on how to get yourself started in investing.

There are plenty of stocks that people can invest their money in. The top international companies that we see on the news are always a good choice because they already have a good track record in handling their business.

Nike, Apple, and Amazon are some of the most popular companies in the U.S. that many first-time investors choose.

Putting your money into the stock market is the easiest way to get into investing because it is less complicated than other forms of investments like exchange-traded funds or future contracts. Once you invest your money in a company, all you have to do is wait for the company’s financial report and examine how they did.

You’ll get dividends based on how much you’ve invested and how well a company performed. Always be on the lookout for well-performing companies in order to get more dividends.

Investing in commodities

Apart from the stock market, some people choose to invest their money in commodities. Currency and stocks can be volatile and their value can decline rapidly based on economic factors. FXCM reveals that traders invest in gold to diversify risks such as inflation or economic events that may negatively impact their investments.

Gold is often the go-to commodity for investors because of its intrinsic value and status as a global medium of exchange for many countries. It comes in a variety of forms including coins, jewelry, good-delivery gold bars, and mining contracts.

If you have the resources, investing in some physical gold is the best choice. Gold coins can be good for starters because they don’t cost as much as gold bars, and their market is quite liquid.

In the U.S., gold investors and traders often buy American gold eagle coins due to the sheer number of investors that hold them in their portfolio, making them quite tradable.

There are no shortcuts to success, and building your wealth takes time. However, if you want to have a shot at achieving a debt-free life quicker than most people, you should try investing your money in the right markets.


How did you begin investing?

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