If you don’t plan on having children, you probably have more disposable income. A new survey from MarketWatch Guides found that 86% of DINKs prioritize other life goals over having children, with 40% of DINKs saying that building wealth is more important to them than having children. In fact, on average, DINKs save twice as much as parents each month. If you’re prioritizing building wealth, you’ll want to invest your money smartly. So, what are some investments that make sense if you don’t have kids? Here are eight investment moves to consider.
1. Aggressive Portfolios
If you have kids, you might be saving for college. This might mean that you don’t want to assume the risk of investing aggressively. Without kids, you’re free to choose a riskier portfolio. The more you risk, the more you may be able to grow your wealth with the rewards.
2. Alternative Investments
Without kids, it makes sense to experiment with investments in alternative assets like crypto, NFTs, or even art. These speculative plays are better for individuals without dependents. Even if you lose your shirt, you’ll be able to recover.
3. Airbnbs
Short-term rentals are a great option for people without kids. The amount of work involved in being an Airbnb host may be too demanding and disruptive if you have a family. According to ZipRecruiter, Airbnb hosts earn around $38,000 per year.
4. Angel Investing
Investing in startups can be a fun way to use your money and mentor entrepreneurs. Most angel investors realize that they may not see a return on their money, since many startups fail. But if the company does become successful, you’ll be one of the first to reap the rewards.
5. Luxury Items
With more disposable income, individuals without kids have room to invest in luxury items like cars, watches, jewelry, and wines. You may even want to consider investing in speculative precious metals like rare gems or more niche metals. They are more volatile and nontraditional than other gems and metals like diamonds and gold.
6. Personal Development
It only makes sense to heavily invest in yourself if no one else is relying on you. You may decide to focus on higher education, like your PHD. Or you may decide to take a sabbatical and focus on travel. While this may not make you more money, it will improve your life overall.
7. Exotic Foreign Currencies
Exotic forex trading means trading currencies from smaller, less liquid, and riskier markets. These markets include places like Thai Baht (THB), South African Rand (ZAR), or Turkish Lira (TRY). They are much less stable than the dollar or euro.
8. Early Retirement
Saving for retirement aggressively is one of the smart investment moves you should be making without kids. You may want to consider the FIRE method if you don’t have kids. This aggressive saving style would be difficult with children, but could be worthwhile without them. With this method, many people save 50%-70% of their income in order to retire early.
9. Single-Stock Concentration
You may want to bet big on one company and heavily invest. Single-stock concentrations mean holding 10% or more of your portfolio in a single stock. While this isn’t advisable if you have dependents, it could be a worthwhile risk as an individual. Investors in companies like Apple and Tesla made significant returns on their investments by betting big on these companies in the early days.
What investment moves are you making? Let us know your thoughts in the comments.
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