When you were young you saved your money during a penny bank or some equivalent container. Your parents told you to save lots of your money so you’ll buy that new toy you wanted. It’s an equivalent today, you save your money so that you invest your money to buy an apartment within the future or a house.
The rationale for why you save your money is because you’ll need the cash to deposit on your apartment or house. Most people lend some money to their home, but you continue to need the deposit because the bank won’t lend you all the cash because they need some security.
Start Saving & Invest Your Money!
As I said early, once you were young you saved your money in a penny bank, today you set your money into the bank. Once you put your money into the bank they pay you a deposit rate, usually between 1.5-2%.
This is often a really low return of your money, once you compare it to the return of the stock market which usually features a return of 7-15% sometimes even more.
As you understand a 2% return on your money won’t cause you to rich, sure the danger is low but it’s not an honest thanks to saving if you would like to form money. If you invest your $10.000 money with a 2% inters. You can make 11040 in five years. If you instead invest your money on the stock market and obtain a yearly return of 15% you’ll almost double your money in five years.
There is the best way to invest your money.
Below is the list of some popular ways to invest your money-
Types of Investment
Stocks
A stock is a share of ownership in a company, where the worth of the stock changes every day. It supports the company’s earnings, potential future profit, and therefore the world economy.
Funds
An open-end fund can be a group of stocks that are selected and managed by a knowledgeable investment team. Different types of funds are hedge funds, equity funds, and glued income funds are a number of the foremost popular funds.
Bonds
A bond is a financial product that you simply patronize a group price and hold for a selected period of your time. During this point, you’re paid interest on your invested money.
Types of Bonds
- Corporate Bonds
- Fixed-rate bonds
- High-yield bonds
Most investments have some risk, it might be that the merchandise or item will lose value rather than gain over time. Some investments, like a bond, feature a lower risk as they need set terms to determine their payout.
Buying individual stocks is riskier because their value depends on the stock market, which is tough to predict.
Mutual funds are somewhere in between bonds and stocks, counting on the type of fund and therefore the types of stocks it invests in. Generally, riskier investments have a greater return, and a low-risk investment features a lower return.
So, above are a few ideas and information, how to invest your money. Hope it helps 😉
Stock, Stock and Stock was the only thing that kept going through my mind the whole time, I started learning it, and in little or no time, I learnt a lot. I decided to focus less on my 9 to 5 job and ended up making this blog. I turned my passion for Stock investment into my work, and I am glad I took that step to change my life for the better and excitement 😉
