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Let Money Work For You

A guide to investing on the market in general


Money shouldn't just be saved, people say. Investing your money and making it work for you in the future is believed to be the best way to control your money. How can you invest? Can you check our our post on some guide to diversify your investment also. There are numerous options available. Make sure your money is secure by picking the right option!



Investing is what?

Investing is the act of distributing your money in order to earn further profit. If you lend your friend money and he returns it a year later - for example, $100 in place of $100 borrowed - then you have invested in him with 10% every year.

Investing requires no special knowledge. Even though it sounds difficult, all you really need is a clear idea of what you want to do with your money and what options you have. Investing is not a sacred science - it is just a basic need for people who value their savings.

It's usually real estate and cash that people invest their money in - but in this case the most popular doesn't necessarily mean the best. Take a look at some of the options you have to invest your money.

Which options are available?

Using Cash Money

Despite this, some people still believe that storing money under the bedroom floor is a valid method of saving money. Essentially, yes, but if that's the route you choose, there are a few things to keep in mind. There is too much easy access to the money, so you are more likely to take just a little bit for extra spending. In addition, remember that inflation will at some point make your savings less valuable than you expected.


 

Fixed deposit at the bank

An interest rate per annum is specified by the bank where you deposit your money. The initial deposit, the deposit tenure, and the percentage you receive differ by country and bank.

Let's say that you have $1000 extra that you want to save from spending. Let's say you deposit it in a bank and get it back with 6% per year. Therefore, in a year, you will earn $1060 - not the greatest profit ever, but quite sufficient, since you don't need to do anything to earn it.


The bond market

Do you remember the example where you lent money to a friend and received more in return? This is similar. The difference is that you're not lending money to a friend, but rather to the government, a region, or a company. Knowing when you'll get your money back, and what percentage you're getting over the amount you gave, gives you peace of mind.

Eurobonds are also available, which are not denominated in the national currency of the country issuing them. Both the issuing and buying sides of Eurobonds issue bonds in foreign currencies.

There is a slight risk reduction with bonds compared to stocks and they are a long-term investment as well. Bonds are normally sold by the government to banks or other financial companies for distribution to investors. There are many factors that affect profitability, but all things considered, it isn't a very meaningful financial break-even.


Forex trading

Forex is not only a means to earn your first million, it is also a means to keep your money flowing. Investing in the finance market can multiply your earnings with FBS. The account registration is free. It is possible to start on a demo account and then move to a real account after that.

Afraid of much risk? As your initial deposit, you will get $100 for free if you try our Trade 100 Bonus. A great start to Forex trading!

In Forex, you're taking a bigger risk than putting your money in a bank or buying dons, but the whole point is that you're risking a lot more to get a much greater reward. The Forex market may provide you with more than 8% per year. It may provide you with 50%, 100%, and more. Just imagine! Risk management will allow you to multiply your initial deposit quickly!


Investing in stocks

In their mechanism, stocks are similar to bonds. As a shareholder, you purchase a small portion of a company's shares (or maybe not so small, depending on your abilities) and receive dividends.

Whenever the business is doing well, the stocks rise; whenever it is suffering, the stocks fall. Prices for stocks are typically quite low, but keep in mind that commissions can be high depending on how much you invest. Furthermore, stocks carry a lot of risk. It means that the stocks are traded at an average level if the company is in a stable situation. When stocks are low, the best time to buy them is before they go lower.


A PAMM account

Accounts with a percentage allocation management module (PAMM) are best suited for people who do not have much experience in trading or simply want to be more of an investor as opposed to a trader. A broker gives an investor a mutual fund account on which a trader will trade on the market with their money. Neither the trader nor the investor can withdraw the funds without the approval of the other.

Multiple managers, traders, and investors are possible - it can be the entire team, but in that case, the process becomes more complicated and is called an open-end fund. Funds with an open-end structure are a collective investment when several people pool their money to build a more impressive portfolio.

A similar app is CopyTrade. Invest in the list of the best traders, and simply copy their moves on the market for a fee of 5%. Let the experts handle the trading.


Accounts for ETFs

A stock exchange-traded fund, or ETF, can be purchased or sold through a broker. Due to their mix of stocks, bonds, and other instruments, ETFs offer a good opportunity to hedge risks. One ETF may hold the stock of several large companies.

Many ETFs track major indices such as Dow Jones Industrial Average, S&P 500, and others. Compared to individual stocks or PAMM accounts, ETFs are more profitable, but they are better suited to seasoned investors. You can diversify your portfolio through ETFs.


Don't invest in these things

For anyone who respects their hard-earned money, binary options and financial pyramids are unthinkable. These are the bad guys you're not supposed to associate with. They are usually quite tempting due to the potential income, but the risks are too great.

It's either all theirs or they lose more than they could afford to lose. If you choose the losing option, you are 100 times more likely to lose, so save your money and nerves.


 

Passionate about investing

The basics of investing are not so easy as ABC, but neither is it rocket science. When you know your options, you can choose the one that suits your lifestyle and watch your money grow. It might seem complicated on the surface, but investing is a basic need for anyone who takes their money seriously. As soon as you treat your money seriously, you will get serious results - it's all in the attitude!

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