Money / Financial Planning
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This will be America’s first year without stimulus since the beginning of the pandemic. For many households, the absence of direct payments and advance tax credits will leave a big hole in the family budget.
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For those families, 2022 will be all about finding creative ways to build their own wealth to make up the difference.
“Building wealth does not have to be complicated or take over your life as you try to make money,” said Donny Gamble, founder of PersonalIncome.org. “It is about making smart investments and finding simple ways to get the cash flowing.”
The following are a few suggestions for building wealth in 2022. A few are side hustles that most people can use to earn more income. Others involve growing money you already have through investments.
All, however, could go a long way to building financial security in an uncertain year.
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Consider the Outsized Rewards — and Risks — of Equity Crowdfunding
Just about anything can be crowdfunded, and upstart business ventures are no exception. 2022 is looking like a good year to get in on the ground floor of one of the many startups that are emerging to meet the evolving needs of the post-pandemic business world.
“Equity crowdfunding platforms allow individuals to grow their wealth by investing in early-stage private companies with the potential for high returns,” said Chris Rawley, CEO of Harvest Returns. “There are platforms that allow people to invest in just about every type of company, from tech start-ups to indoor agriculture. Many of these platforms allow someone to invest with fairly low minimums, but investors should also realize the risk involved with start-ups and not invest money they potentially might lose.”
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Use Stablecoins as an Entry Into Crypto Investing
If you’re tempted by crypto but turned off by the volatility of 2021, you can get in on the action with less risk by investing in digital tokens that are pinned to stable underlying assets.
“Instead of investing in high-volatility coins like Bitcoin or Ethereum, you can simply stake stable coins like USDC for a low-risk return on the order of 12% APY,” said Brian Bender, Ph.D., of Earning Fire. “Stablecoins, like USDC, can always be converted to U.S. dollars at a ratio of …….