Living a life of financial freedom is everyone’s dream. Think of how many movies you can fund, the high-end cameras and gear you can afford as well as simply not worrying about where the money to pay the bills will come from. But a life of financial freedom won’t happen unless you take active steps to invest and save up money where needed.
Below, we’ll talk about some of the advantages of investing. (Don’t worry, this isn’t turning into a finance blog, since now you can actually invest money in movies.) But we wanted to touch on this subject to give people an idea on why the importance of making money work for you.
The Advantages of Investing
You Get To Build Your Wealth
It’s common for people to think getting rich means you have to save a lot of money. While this can be true, investing is the real key to building a stable financial future. Luckily, there’s never a shortage of ways you can invest or grow your money. The important thing to do first is to create an investing plan you are happy with. Figure out how much you can invest, then make a list of the avenues you want to invest in.
You Get to Prepare for Your Retirement
Having your money sit in a savings account means you’re not making it work for you. When you actively invest the money instead, you can double or triple through compound interest. For example, when you invest $100 and leave it for a year, you would earn $10 for interest. If you continue to let the money grow, then you have $110 that will earn $11 for interest and so on. This cycle of compounding interest will go on without you doing anything. Now, just imagine if you increase the amount of investment each year. This means you have full control over how little or how big your money can grow.
You Can Cut Back on Taxes
When putting money on retirement savings account like SEP IRA or 401K, you don’t get taxed for the payments you make. The only time you get taxed on is when you make a withdrawal during retirement. This helps save you tax money whenever you contribute. Of course, if you prefer to pay taxes now instead of later, you can opt for something like ROTH IRA where you pay tax as you contribute and not pay when you withdraw.
As an alternative, you can speak to a financial advisor or CPA to give you a more customized investing plan that matches your current needs.
You Can Achieve Personal Interests and Goals
Investing helps you meet other personal goals or satisfy any interests you have. Let’s say you have a goal to buy a house or maybe save for your wedding or child’s schooling. Having a long-term goal not only serves as motivation and helps you reach it faster. Of course, the goals can be extremely personal to you. It would depend on your lifestyle and the kind of interests you have.
A Few Things You Can Invest On…
1. Side Business
More people these days are realizing that having a side business can be a huge help when it comes to their finance flow. There are a lot of different ways to start a business, it can be big or small. Just be aware of your capacity and make sure it’s a business that you will be happy doing.
2. Movies and Other Personal Interest
Investing in movies is now possible thanks to small to medium-sized production companies that are disrupting the old Hollywood model. With this current setup, investors can contribute their investment to making film through equity crowdfunding. Like any investment deal, an investor receives possible returns (and other perks depending on the contract) once the movie is released to the public. There are also other things you can invest in aside from movies. Of course, you can find other items to invest in aside from movies.
3. Paying Off Your Debt
Paying debt might not seem like an investment but it actually is. Paying debt means you automatically get a “return” based on the interest per year you get to save once the debt is clear. What’s more, once debt is paid off, the interest rate associated with the debt disappears, allowing you to save money and direct it elsewhere for investment.
4. Properties or Real Estate Investment Trusts (REITs)
Investing in real estate, like having rented buildings or spaces, buying and selling etc., always delivers returns in the long run. But like any investment, there are hazards. For one, it requires a good amount of upfront capital. There’s also the possibility of problematic returns if tenants cannot pay. However, if you are fine with these risks and don’t mind the work, then real estate should be a good investment option.
On the other hand, if you’re interested in this sector but don’t want the hassle of being a landlord or an agent, go for REITs instead. This is a type of mutual fund designed to hold individual properties. You can research more about it and see if it’s for you.
If you’re willing to learn the ins and outs of stock investments by all means go invest in stocks. Be smart about this. Educate yourself on what types of funds and stocks you should invest in and learn or hire someone who can help you handle your portfolio properly.
6. Retirement Savings
Retirement savings is absolutely important. Those who realize this earlier on, will later be thankful they listened and socked off some money in a retirement fund. Check with your government or your company for an employer-sponsored retirement plan for starters.
7. Yourself and Your Family
Finally, not all investments require money. In fact, it’s not advisable to invest simply so you can chase money. There has to be a reason why you’re investing in the first place. Oftentimes, the main reason that comes up is because we want to give our loved ones a chance to live a good life. Investing to earn money is good but always understand your “why” through all of it.
If you love the idea of investing in films, here’s your chance.
New Dawn Films is a New York-based video production company that has a built-in audience with over half a million fans thanks to their SCARY MYSTERIES Channel on YouTube. With this guaranteed audience base, once the film releases even if a fraction of the audience purchases at $5 each on Amazon Prime Video, that’s automatically going to generate $1,000,000 in sales!
Click here “An Angry Boy Film” to visit our SEC-registered Start Engine campaign and join today! If you have questions about this unique profit-sharing model, feel free to contact us, and we’ll gladly answer your question.