7 Apps That Would Help You Reach Your Financial Goals - online loans

Investing is an area that many approach with trepidation, but the truth is that we are always investing in things. It could be in superannuation/401K, in a car, in a home, or even an annual gym membership.

So, when it comes time to invest in businesses and apps, you are more ready than you believe yourself to be.

If you are thinking about investing in an app due to the volume of fantastic apps out there and our increasing reliance upon them, you are thinking like a smart investor.

Any financial decision should be consulted with a qualified advisor, but let’s review whether apps are a good investment to start thinking and planning seriously for.

Only if you do the research and find a gap in the market

If you’re wondering whether apps are a good investment, the answer is yes. But it’s not that simple, and you shouldn’t be making your decision flippantly.

Like any investment, you need to vet the opportunity rather than applying any blanket thoughts and ideas about that segment.

PropTech is a huge growth area at the moment, but that doesn’t mean that each PropTech app is a winner. 

If you have an idea on an app in the making or know an industry that you want to jump into, put in the effort to read their annual reports, their growth expectations and understand and appreciate why this app’s USP is going to result in a successful investment.

This research will never be wasted time, and it might even stop you from investing in an okay app instead of the great app you could have found and invested in.

Diversification is important 

All financial advisors will tell you that diversification is key to smart investing, as you want to have yourself spread across a few asset classes.

Then if anything happens – your portfolio mix will not go one specific direction. The equally-spread risk will help you sleep at night.

Let’s say all your investments are in the property market, then new legislation or low rental demand can significantly impact your standing.

In the same way, if you are only investing in oil stocks and the market takes a dip or there is a big buy out – then you will have to wait for the market to recover and might not be able to access those funds.

Investing in an app is an incredible way to add some diversification to your portfolio, and the knowledge and insight you gain in this area might inform future investments.

Global scalability

With other investment asset classes, you are staying in a lane and you can’t necessarily expose that investment to global growth.

An app can be used and enjoyed by customers all over the world, which increases brand recognition and makes your product and service appeal to a wider market.

You can also learn some great insights from your users, with the app developers improving the app further to provide greater value, which will only make your investment more profitable.

When you start to sit down and talk with these entrepreneurs or investment facilitators, get clear on what their strategy is nationally and globally so you can make the right decision with all the cards.

You won’t find too many dissatisfied app investors these days, with screen time at an all-time high and the innovations coming from the app industry proving that anything is possible.

That said, there will be a large population of people who don’t feel that the insecurity of a new style of investing is worth the high reward. Find out where you are on the risk spectrum and start investing

Stock Photo from garagestock @ Shutterstock