The road to debt-freedom is a long one. It takes discipline, cutting back on your expenses, and the vision to prioritize your money. Once you’re on the other side of debt, the habits and techniques you learned to get out can help you become smarter with your money for the future and start you on the road to real wealth-building.
Instead of going back to old spending habits, some which could land you back in debt, many of the recently debt-free would rather keep saving. They don’t ever want to wind up in debt again, so they start building up their savings. But the question is, what should you be saving for? Some early goals might include:
- Building up an emergency fund (3-6 months of living expenses) so that you don’t have to rely on credit cards for unexpected expenses or loss of income.
- Saving for a vacation or a car that you can pay for outright.
- Setting money aside for retirement or to buy a house.
As that money accumulates, it’s time to start thinking about investing those savings.
Variety in Your Portfolio
Traditional investments include stocks (often in the form of a mutual fund), as well as bonds. These are great places to start. Stocks have some of the highest long-term growth of any investments. But if you pay attention to the news, you know they’re not always a safe bet and stock prices can dramatically fall.
Although bonds are generally considered safe, low interest rates can also result in negative real interest rates – when inflation is higher than bond yields.
The one way around sluggish growth and recessions is to diversify your portfolio. You can invest in alternatives like gold.
How Can You Buy Gold?
Gold is one of the simplest investments you can get your hands on. You can buy gold online, a smart way to save on premiums and quickly have gold coins or bars shipped to you or placed in storage. If you’re looking for a place to start, check out Silver Gold Bull for gold bullion and fine silver. From an investors’ standpoint, look for lower prices on coins and bars that are investment-grade (usually .999 purity).
For first-time investors, start with commonplace coins like Canadian Silver Maple Leafs or American Silver Eagles. 1 oz silver bars can be even more affordable.
Gold vs Debt
If you still have debt but you’re thinking about buying gold, consider this: paying back debt is the best investment you can make. You’re investing in your future financial freedom. Every time you spend or save a dollar that doesn’t go toward debt, your debt grows more than it otherwise would have.
Gold is an effective and safe store of value over time, but it doesn’t generate interest. Wait until your debt is paid.
Before investing, it always pays to do your research. But the position of the financial markets today means gold is a good value investment and it will preserve value in the long-term. Getting through a market crisis will help you succeed financially in the long-term.
