10 Proven Ways to Invest Personal Money
Most people manage their first own money rather strangely: they tend to spend their
scholarship or salary instantly on some everyday dreams and desires. Few people considered how
swiftly money might vanish from their grasp. For only after some time comes the need to
accumulate and save, or rather, to multiply. Everyone knows the expression money should work for you, but it’s much more difficult to put them to work, or find ways to invest money. So it’s a good time to talk about what properly invested money can do for your budget and what investment
To be honest, there are plenty of bidders for the free money of a private investor: banks, financial
institutions, and regular stores, and even more often – scammers. This means you need to think
carefully about how to start investing and what lies behind the particular process. Several important
points are important to understand before you decide to invest your savings in anything.
DON’T INVEST THE UTTERMOST
You should invest only free money – the money that you don’t need for life in the very near
future: nest-egg, savings.
DON’T START WITH LARGE AMOUNTS OF MONEY
Put that money you can handle from your personal or family budget without risking going
bankrupt. Private investing is not a game of chance, but a process that requires expertise, skills, and aptitude, so you should learn in small amounts.
BE READY TO SKATE ON THE THIN ICE
Any investment involves varying levels of risk. Learn how to calculate them and learn ways to
reduce them (for example, making a diversified investment portfolio – the case when you invest in
several different funds). Simply put, don’t put all your eggs in one basket.
AVOID CONTROVERSIAL SOURCES OF INFORMATION
Unfortunately, many fraudulent websites offer tempting but harmful strategies. Refer to official
sources – websites of certified brokers, banks, and securities issuers portals. Especially since serious companies have convenient mobile applications – so you can invest and monitor the movement of your money in real-time, wherever you want.
Consider investing in different instruments, choose comprehensive strategies, combine ways to
generate income. In today’s economical and geopolitical environment, it is better to diversify your investment portfolio not only by the type of investment but also by industry and country of issuers, maturity, reliability, and liquidity. This way you partially insure yourself against loss.
BE SURE TO TRY INVESTING AGAIN
Even if the first one was not the most successful. Analyze your mistakes, evaluate new
opportunities, consult your stockbroker and try again.
DEAL WITH PROFESSIONALS, ESPECIALLY AT THE START.
Working with a stockbroker allows you to avoid silly and hurtful mistakes, learn how to work
with tools, and gain access to exclusive analytics, without which competent investment is
impossible. And most importantly, remember: a professional stockbroker guarantees transparency
and controllability of all operations. If not, refuse the services offered to you.
Let’s choose the top 10 most interesting and experience-tested ways of investing.
1. Invest in Yourself
In your health, education, appearance, personal development. This is one of the best investment
options – because by becoming a better version of yourself, you will not only change the quality and
perception of life, but you will also be able to make more money.
2. Short-term Corporate Bond Funds
Companies often attract investment by issuing bonds to investors, who then combine to form
bond funds that hold bonds issued by potentially hundreds of corporations. Short-term bonds are less subject to interest rate fluctuations than intermediate or long-term bonds because their average
maturity is one to five years. Investors that require cash flow, along with retirees, and those wish to
decrease overall portfolio risk while still generating income, can consider corporate bond funds.
3. Stock Market
An instrument of private investment that few people have not heard of. It is a profitable way of
investing – for example, shares of Microsoft or Apple have been showing stable growth year after
year for more than a decade. But most private investors don’t understand how to enter the stock market and how to profit. So, one can ask: how to invest in stocks? It’s simple: a private person is not always allowed to trade on the exchange, so you may ask for help from a broker. It is anintermediary who, on your behalf and at your expense, will handle the securities or exchange
commodities you purchase, fix the income, and pay taxes. For this, he will receive a small fee.
4. Real Estate Investments
Another popular way of investing. There are several options: buy an apartment and rent it, buy an
apartment under construction and sell the finished one at a higher price, invest in the repair of old
housing and sell it at a higher price; rent and sell the property as an office.
5. Daily Rental
Daily rental apartments are also a solid niche. It arose long before the hotel industry, so it too has
formed its own market rules. First of all: apartments for rent are popular among tourists visiting
cities with a specific purpose – for vacation, business trips, business meetings, medical treatment,
offline courses, or visiting institutions or places that are only in this city.
Therefore, you need to choose the country and city where it is profitable to buy accommodation
for such a purpose.
6. Treasures of Art
Investing in art treasures and collectibles: stamps, books, coins, paintings, works of art, exclusive
jewelry, cars, antiques, and even wine.
7. Invest in Precious Metals
Advantages: in the long run it is possible to multiply capital, safe haven in times of crisis.
Disadvantages: not profitable for a short period, requires specialized storage (own safe deposit
box or a rented safe deposit box in a bank), and with large volumes of possible high taxes
(depending on the country/state).
8. Innovation and Venture Capital Investment
Innovation and venture capital investment now attract everyone from movers and shakers to
private investors in crowdfunding companies.
Indeed, one can invest in the development of a technology startup or a single product, but you
should note that this is expensive and involves some risk.
Building your own business is a great way to invest if you get a really good idea.
Advantages: high profits and stable income in the medium term, the status of the businessman.
Disadvantages: you need serious start-up capital and full commitment, over the long-term
investment. The most difficult thing is to endure the first five years of development, as more than
80% of startups close down within this period. But nothing ventured, nothing gained.
A cryptocurrency is a form of digital currency intended for use as a medium of exchange. They
had become popular in the last decade, and according to ICOholder, Bitcoin has surpassed the dollar as the most popular digital currency, as the price of the asset has risen, attracting even more players.
Crypto casino is suited to risk-takers who are willing to risk losing all of their money in
exchange for the possibility of bigger returns.
Summarizing, there are many options for investing, for any taste and for any start-up amount.
The main thing is not to be afraid of anything, to start, not to stop and not to let things go on their
own. The are no best way to invest money, but there are few good ones – just be on the money.