3 Stock Market Alternatives For Investors

stock market alternatives investing

If you're like most people, you could do with having a little more cash in your pocket than you currently have. Most Americans live paycheck to paycheck, meaning a desire for some extra income is at an all-time high. 

Many people turn to the stock market to invest their cash and earn some extra income. However, the stock market can be famously risky. For many, it's too risky to put money they really need into stocks. 

Luckily, there are some stock market alternatives out there for those who still want to find other ways to grow their money. There are other paths one can take. Interested in learning about these alternatives? Read on and we'll walk you through what you need to know about alternative investments. 

1. Bonds 

If you're looking for a solid investment that comes without the risk of trading in the stock market, bonds are a perfect way to go. They are the classic alternative to stock market investing. 

The concept of a bond is simple. You are lending an amount of money to the government. In a designated amount of years, you'll see that money back with a good amount of interest. 

There's really no risk involved. Even if the market goes south, the government will still owe you what you paid to them. This is why many people turn to bonds to diversify their investments, especially when the market takes a downturn. 

2. Real Estate 

You'll need some extra income to get into the world of real estate investing, but if you can afford to buy a property somewhere, it can be a huge boon to your future earnings. 

Property values can increase in value over the years, allowing what might be a small investment initially to turn into something of massive worth as the decades go by. 

That's not to mention the money that can be made from renting properties out to those looking for somewhere to live or stay. There are many different ways to make income from rental properties as long as you have time to care for them. 

3. Options Trading 

If you're not familiar with the idea of options trading, it is well worth looking into. While being tied to the stock market, options are actually a completely different kind of asset. 

Options are typically written on stocks but can actually be applied to any asset, including bonds and currencies. They are contracts that allow the bearer the right to buy or sell an asset at a pre-determined price. 

They can be a powerful part of any investment portfolio. You can read more about how they work at Motley Fool or the Wall Street Journal. 

Stock Market Alternatives to Consider 

If you're looking to make additional income, looking into the above stock market alternatives would do you well. All three of these pathways can help to increase your future financial stability. 

Need more investment advice? Keep scrolling our blog for more traditional stock market alternatives including cryptocurrency, OTC securities, gold, silver, venture capital, and forex investing.

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