Invest is definitely a part of personal finance and also part of the plan to financial freedom. Without investing your money, your money won't grow and give any benefits to you, except spending on what you want.

There are a lot of investments in the market. Maybe you heard a story that how 1 man invest in stocks and retire rich. Or maybe you heard from someone else that real estate investment already helped millions of people making a living or even become rich and financial independence from it. Lots of information from the market and make us confuse on which one to invest in, Stocks or Real Estate?

So what is the benefit of stocks?

Liquidity and its earning potential. Stocks are famous with its liquidity. You can easily take out your money from the stocks market and invest in other profitable investment. Besides that, the earning potential in terms of speed for stocks also quite high. Compare to other investment, you can take your profit from stocks market within 1-2 days if you enter the market at the right time. Of course, on the other hand, you still have the risk to loss your money within 1-2 days.

How about Real Estate?

Leverage and low risk. You can leverage on bank to invest in real estate. That's mean you can invest using other people money in real estate. You can pay a little down payment and get a mortgage from banks to own your property. Then you can rent it out and wait for the appreciation. In this case you do not have to spend lots of money to get started. In addiction, in my opinions, the risk for real estate is low compare to others. Most of the time the value for property will appreciate. The only question you have to consider is how fast it can appreciate.

Now what to choose?

Ok, its time for me to share my own opinions. Stocks and real estate definitely is 2 kinds of investment that I put in my plan to financial freedom. But I make a sequence for them. First I will invest in real estate and later is stocks. Why? I invest in real estate before stocks in because of the leverage. By maintaining a credit record and account history, I can easily leverage on banks to invest in several property to build an income source for me. At the same time I will learn and catch up the stocks market trend. When I have enough income, then I will invest PART of my money to stocks market. This is part of my plan to secure me from total lost. If everything go smoothly, at the end I will build a strong income source from real estate and using the earning power of stocks to duplicate my wealth.

Related posts:

1. Real Estate - The advantage of real estate over stocks Dr. Dolf de Roos from Trump University wrote a good...
2. Real Estate - 5 Risks in Real Estate Investment Investing in real estate is not 100% risk free. When...
3. Invest To Financial Freedom - 3 Common Mistakes You Should Avoid In Stocks Trading Every person who really invests their money before can tell...
4. Invest To Financial Freedom - 3 steps to train yourself become great stocks investor! Stocks, is one of the investment that we can access...
5. The Real Estate Bubble and Tips to Protect you from it This is an article about real estate bubble and what...
6. Invest To Financial Freedom - Ways To Invest when you have $100,000? Conservative Way Part 2 This is the chapter 1 for my series Ways to...