Personal Finance: Alternative Investment Options

Personal finance management is a huge challenge that you try to crack. No matter how much your budget, the balance between saving, investing and spending never seems to go right. You can't help thinking ‘I wish I had more!’

Traditional savings help you earn steady but moderate returns. High-risk savings are great, but not everyone has that level of financial insight. So, you end up in a dilemma. While you look after the needs of the family you struggle to make a decent savings for emergencies, health, kids’ education and retirement. Caught in the middle of this mess, you end up forgetting to live. So, why not think of investing differently, or alternatively? Yes, alternative investments are the new go-to for the tech smart financially futuristic folks. Here's a better idea of what alternative investments are all about.

Income

The most important part that influences your finance planning is the cash inflow. The source of income that you generate from your salary, investment monthly/quarterly/yearly returns if any, rent (if any) etc. You need to decide if this income is enough to support the budget that you plan every month. 

Expenses: If you are not working on a budget, you will never keep track of your spending. So right at the outset, chalk out the regular expenses such as  rent, bills, loan repayment, credit card payment, food, education, health, transport, entertainment etc. 

Most people don't have an investment plan and put this as the least important part of their priority list. 

Saving

Out of the incoming funds, no matter what the amount, the thumb rule is to save 25%. If you can maintain that, it is great. If not, keep it to not less than 20%. So where will you save? The safest way to begin is with a bank. Start a recurring deposit. Traditional investments are a great way to start a saving habit. Keep short-term targets in mind. Remember that a saved fund needs investment to make them grow. 

Invest

Investing is purchasing assets that can generate returns with interest. Good investments are ones where the rate of return is steady, maintains low risk and at the same time has the potential to grow. Sounds unreal? Yes, if you are investing in the high-risk share market or mutual funds.  But if you choose alternative investments like asset leasing, inventory financing, corporate bonds, startup equity or even commercial real estate, the risk is minimized while growth is maintained at a steady pace.

Investing is the trickiest part of personal finance. But if you find the right platform, your returns will not just be healthy, you can enjoy passive income without having to think too much about how you will manage your monthly expenses. Your income is sure to multiply, letting you take better control of your life. 

Do these alternative investments offer protection?

Alternative investments that are being suggested here are a combination of both long- and short-term investments. While the short-term ones only extend to a maximum of three years, those with a small risk-taking appetite can give it a try. Long-term investments are moderately risky. Low risks are better than high ones so why not get an understanding of the products and just give it a go? You don’t need to make a big initial investment. Start with low capital funds as small as ? 10, 000. 

Alternative investments in short term

Corporate Bonds: You might have wanted to invest in corporate bonds but could not owing to its high-ticket size. Now you can invest with a small amount and low risk. This short investment of 36 months can bring excellent returns. 

Asset Leasing: A contractual agreement where companies instead of owning assets, prefer to lease. Companies pay regular payments in exchange for use of an asset over a period. 

Inventory Financing: Companies invite financing for their inventory from investors. Investors back these assets with finance and earn a lump sum at a maturity of 13 months.

Alternative investments in long term

Startup Equity: You may not have thought of having equity in a startup as it involves huge investments. But with a crowdfunding policy, you can invest in VC-backed promising startups and enjoy financial success with the startup. Instead of investing crores, you can start with just ?2 lakhs. 

Commercial Real Estate: This is an exciting investment opportunity that involves high risk, high returns. Not till long ago, these opportunities were only reserved for a few elite investors. Not anymore. You can also invest in commercial real estate through a fractional minimum amount and enjoy quarterly rentals. 

Where to look?

So, where do you find these exciting alternative investments? Grip offers exciting investment plans that suit every budget type with high potential for financial growth for anyone seeking to invest at any age. The best of short- and long-term curated investment plans can build individual assets and leave you satisfied when you start planning your personal finance. Instead of sticking to the prevailing investments, try these alternatives. Build a better future with smart decisions.