Where to invest money profitably and reliably. Where to invest money, or the most profitable investments
We all save money. A schoolboy saves for a new smartphone, a student for a car, a young family for an apartment (or more often for a down payment for a mortgage), a worker for a vacation, and a pensioner for a funeral. And no matter how tense the economic situation is, the money somehow accumulates. Otherwise, why are there so many iPhones and expensive cars around?
But what most people don't realize is that when the accumulated money is under the pillow, it subtly diminishes. Every night a "savings killer" comes and steals a small part of our savings. And this killer's name is Inflation.
The official inflation rate in Russia for 2015 is almost 13%. But we know that it is not weakly underestimated (those who remember the prices for products in 2014 understand this especially well). The real inflation rate for 2015 was definitely over 20%.
Thus, all our savings depreciate at a rate of at least 20% per year or 1.65% per month. So, now most of the ways of investing do not help to increase your funds, but at least offset inflation a little.
In such a situation, it is very unwise to keep money under the pillow. Any free money should work. But how to invest them as reliably and profitably as possible?
Investing is not that hard.
I think everyone understands what investing is. When investing, you make your funds work. That is, you invest money, expecting to receive even more money in the future.
But we must not forget that investing entails risks. Instead of the expected profit, you can get a loss or even lose all your money.
Therefore, the main rule of investing is risk diversification. According to this rule, you must break your savings into parts and invest them in different investment projects.
For example, let's say your investment portfolio is $100,000. Then you need to choose a few investment instruments that are suitable for you. Suppose you have chosen mutual funds, PAMM accounts and backing and HYIP projects. Now you will need to distribute your portfolio between instruments depending on how much you are willing to risk.
Let's say that you are configured for moderate risks and distribute money as follows: mutual funds - 40%, PAMM accounts - 40%, backing - 10% and HYIP projects - 10%. Now you need to apply the principle of diversification within each chosen way of investing.
That is, you will need to select several different PAMM accounts and distribute your 40% of the portfolio between them. The same must be done with other chosen ways of investing.
In order to comply with this rule, you need to use several tools that can multiply your money. I have selected 12 of the best ones for you.
We compare the 12 best ways to invest.
I not only selected for you the 12 best ways to invest, but also compared them with each other. For comparison, I chose several parameters that I decided to evaluate on a 10-point system, where 1 is the lowest score, and 10 is the highest.
Comparison of the best ways to invest.
The following options have been selected:
- Simplicity. This parameter characterizes how easy it is to understand this type of investment, understand the principle, find a suitable company and make a deposit.
- Yield. Here the average return on investment will be estimated. Most often, this and the following points are interconnected: the higher the yield, the higher the risks.
- Reliability. This parameter characterizes the riskiness of the analyzed investment instrument.
- Entry threshold. Shows the minimum amount you can invest.
- Liquidity. Estimates how quickly you can withdraw your deposit, and what losses you expect if you withdraw money prematurely.
- Passivity / activity- this parameter shows how passive this type of income is. That is, 10 points means “invested and forgot”, and 1 point means that in order to get the maximum profit, you will have to spend extra time and effort.
Of course, all my assessments will be subjective and I think that many readers will not agree with them.
1. Bank deposit.
A bank deposit is the most understandable and simple way of investing for an ordinary person. Even any grandmother understands how everything works. After all, even in the Soviet Union, in which there was no investment, people kept money on passbooks. And one of the heroes of the popular Soviet film called on fellow citizens to keep money in savings banks.
All you need to do to make a deposit is to choose a bank and come there with your passport and money. What could be easier? I bet 10 points.
At the same time, the profitability of a bank deposit is not high. At the moment, deposit rates range from 7% to 12.5%. I think this is one of the lowest returns of all investment methods. Deserves 1 point
But you can be sure of the reliability of your contribution. The deposits are insured by the state. Even if you plan to invest a large amount, in order to insure that your bank's license will be taken away, you can break the amount into small parts and invest in several banks. In this case, even if the bank is deprived of a license, and your deposit was less than 600,000 rubles, then you will be compensated for both the deposit and interest. 10 points for reliability.
You can start investing with an amount of 10,000 rubles. This is not much at all, so you can put 8 points.
In most cases, you can withdraw money from the deposit at any time. But if you withdraw money early, you will lose most of the profit. 7 points for liquidity.
This type of deposit belongs to the “put it and forget it” category. All you need to do at the end of the investment period is to come to the bank and withdraw your money. Well, or roll over the deposit. 10 points.
Pros:
- High reliability.
- Availability.
- Low taxes. You will have to pay 35% of taxable income, which is calculated according to the formula: all income minus the refinancing rate.
- Predictability of results.
Minuses:
- Low yield.
Conclusion. This type of investment is more likely not to increase your money, but to somehow compensate for inflation. In any case, if you do not want to risk at all, then this method is better than just keeping money under your pillow.
2. Mutual investment funds (PIFs).
For an ordinary person, investing in mutual funds seems not a very clear undertaking. To understand this, try explaining to your grandmother at the entrance that you are buying shares in the fund of a management company that invests money in assets.
The choice of a mutual fund should also be taken seriously, studying the statistics of different funds. After that, you need to go to the office of the company or its agent. For simplicity I will put 6 points.
The yield here depends on the type of funds and on the approach to choosing a mutual fund. The riskier the investment the fund makes, the higher the potential return is expected, but in most cases it is not high. 3 points.
Reliability also strongly depends on the type of fund. At a time when bond mutual funds are one of the most risk-free investments, investing in venture funds carries very high risks. On average, I would rate reliability at 7 points, because at least you will not be able to lose most of the deposit, as in other ways of investing.
The minimum cost of a share starts from 300-500 rubles per share, which is suitable for almost everyone. 10 points.
I think most people invest in open mutual funds, so in this paragraph we will only talk about them. You can withdraw money from open funds by selling your shares in 1-3 business days. I will put 10 points.
Still, with this method of investing, you will have to spend a little time managing your investments. Of course, the management company will do the management within the fund without your participation, but you will have to transfer money between mutual funds and decide when to sell shares and when to buy. 8 points.
Pros and cons of this investment method:
Pros:
- A large number of assets in which the fund can invest.
- Low entry threshold.
- Relatively low risk.
Minuses:
- Possibility of making a loss in case of an unsuccessful choice of a fund.
- Relatively complex investment procedure.
- An investor should be interested in the stock market.
Conclusion. With a successful selection of funds and proper management of your investments, the profit from the deposit covers inflation and brings a small income. But you need to remember that many funds bring losses to their investors.
3. PAMM accounts.
Brokerage companies have invested so much money in advertising in recent years that only the deaf have not heard about Forex and the tempting prospects of becoming a successful trader. Therefore, it is not difficult for an ordinary person to understand the principle of PAMM investing - to give money to a trader so that he can play on the stock exchange.
You can find a suitable broker on the Internet. At the moment the most popular is Alpari. So I will put 7 points for simplicity and clarity.
Some accounts can bring you more than 100% profit per year, and some drain all your money. But, when using the principle of risk diversification, the income from this type of investment is slightly higher than in mutual funds and is estimated by me at 5 points.
As returns increase, so do risks. When using the principle of diversification, you will not lose the entire amount of your investment, but you may receive a loss. For reliability, I would put 6 points.
You can start investing in PAMM accounts with $10. At the moment, this is equal to 700 - 800 rubles. The amount is small, so I put 10 points.
You can withdraw money at any time within one to two business days. Therefore, for liquidity 10 points.
Investment management takes time. If you do not use automatic tools, then you will have to log into your personal account almost every day. After all, the market situation can change very quickly and your managers can make critical mistakes. I bet 6 points.
Pros and cons of this investment method:
Pros:
- Low entry threshold.
- Opportunity to build your own investment portfolio.
- Simple investment procedure.
Minuses:
- It is possible not only to receive a loss, but also to drain the entire amount of the deposit.
- An investor should be interested in trading in the foreign exchange market.
Conclusion. This is a very common way of investing, which has gained popularity due to advertising. This way to invest money is more suitable for those people who like the foreign exchange market or who have experience in trading on the stock exchange.
4. HYIP projects.
This type of investment is often referred to as quasi-investment. In simple terms, these are pyramids that accrue profits to participants from new deposits.
It is very easy to invest in these projects. Many of them accept bank transfers and payments through the most popular payment systems. Most often, HYIPs have a legend that explains to gullible investors where the company takes money from to pay such high interest.
It is very easy to make a contribution to such a project via the Internet. But, if you are new to the Internet, it will be more difficult. For convenience, I would put 8 points.
Profit HYIP-projects promise simply cosmic. On average, long-term HYIPs offer to pay 20-30% per month. Short-term ones can promise to double the amount of the deposit in just a few days. 10 points for the promised yield, but in fact it, of course, turns out to be lower.
There is no need to talk about any reliability of deposits. The project can collapse at any moment. Every day 1-2 HYIP projects are opened and the same amount is scammed. Therefore, for reliability, I would put everything 1 point.
I think that in this paragraph and the paragraphs below, we should consider only long-term projects. The minimum amount of entry into them starts from 1,500 thousand rubles. 9 points for a low entry threshold.
In most projects, the deposit cannot be returned. It will be returned to the depositor during the entire investment period with each payment. Therefore, only 1 point.
If you have already invested in one of the HYIPs, then all you have to do is sit and hope that the project will exist and pay. You can't do anything anymore. Completely passive investment deserves 10 points.
Pros and cons of this investment method:
Pros:
- High yield.
- Convenient deposit and withdrawal of money.
Minuses:
- Very high risks.
Conclusion. Earn onHYIP-projects can only those who are "in the know." You need to be able to analyze projects and find those that can generate income. Most people who make money on HYIPs compensate for the loss when investing by attracting referrals.
5. Bucking (investing in poker players).
Almost everyone knows about such a game as poker. At the same time, many understand that successful players receive big money for winning tournaments. But how many people know that most poker players don't play big tournaments with their own money?
That is, if a strong player does not have enough money to participate in the tournament, he turns to an investor (sponsor), who receives a percentage of the prize money if he wins. The player can also have several sponsors who invest in the player and profit from winnings depending on the amount of investment.
You can buy a share from a player only by agreeing on it on specialized forums. For example, on the forum of this site: PokerStrategy.com. To purchase, you will need to personally write off the player. For convenience, I would put 4 points.
The reliability of this type of investment is highly dependent on the choice of players. In addition, when buying a share, you do not sign any contracts and the player may “not want” to give you your share for winnings. 3 points for reliability.
You can buy a share from $10. But only novice players sell so cheaply, to buy a share of a professional, you will need to invest 200-300 dollars. But it's still better to start with small investments, so I put 10 points for a low entry threshold.
There is no such thing as withdrawal of money. You pay a share, and if the player gets into the prizes, you take the profit.
After you have made a deposit, you just have to wait for a positive outcome. You can no longer influence anything. 10 points.
Pros and cons of this investment method:
Pros:
- The possibility of making big profits when a player wins a tournament.
Minuses:
- More suitable for people who understand poker.
- The deal is based only on an oral agreement with the player.
- Usually, players earn more than sponsors.
Conclusion. Rather, backing will suit people who are well versed in poker. It will be difficult for the average person to pick the "right" player.
6. Trust management in sports betting.
Most people treat sports betting like gambling. But professional marques earn a lot and consistently on bets on sporting events.
Many privateers create their own PAMM accounts, which actively attract investors. This type of investment is similar to PAMM accounts in the foreign exchange market.
In order to make a deposit, you need to register on the BetPamm.com trust management platform and select several accounts for investment. 7 points for simplicity.
If you look at the charts of profitability, you will see that the leading privateers increase the funds in their accounts by thousands of percent. Such income should bribe. But on average, the return on this type of investment is much lower and deserves 6 points.
If you use the principle of diversification and invest in several PAMM accounts, then at least you will not lose the entire investment amount due to privateer errors. For reliability, I would put 6 points.
Investing can start with very small amounts. For a low entry threshold 10 points.
You can withdraw money quickly and easily. 10 points.
After investing, you will need to monitor the selected PAMM accounts in order to transfer money between accounts in case they go to a loss or achieve maximum profitability. 6 points.
Pros and cons of this investment method:
Pros:
- Short term investment.
- Self-build portfolio.
- Low entry threshold and the ability to use a demo account.
Minuses:
- The possibility of receiving a loss or draining the entire amount.
Conclusion. This method of investment is very similar to investing in PAMM accounts in the Forex market. But it is not so famous due to the lack of advertising.
7. Startups (venture investments).
In recent years, stories of successful startups have been booming all over the place. Everyone understands how profitable it would be to buy shares of young companies, which in a few years would turn into large billion-dollar corporations.
The first way to invest in a startup is to conclude an investment agreement with the company directly. Some companies actively attract investors on their own by selling them future shares at discounted prices. Yunitskiy's SkyWay can serve as an example of such a startup.
You can also invest in a startup using crowdfunding platforms and startup exchanges. Exchanges do not inspire confidence in me, as I consider them HYIPs (read my ShareInStock review). But many reputable sources call them real companies. When you enter the exchange, you will see audited and verified companies in which you can buy shares. You just have to choose a suitable startup and buy a share in it. For simplicity 7 points.
For the purchase of shares on the exchange, the company will pay you dividends in the amount of 2% to 7% per month. In addition, an investor can sell his shares if the company develops and its shares grow in value. He can also sell shares if they lose value and he realizes that he has invested in a shell company. For profitability 6 points.
You need to understand that startups are a risky type of investment. According to statistics, 70% of them are unprofitable, and 20% of these 70% are just scammers who embezzle investors' money. But even of those companies that are in the top 30%, half of them break up in the near future due to internal problems.
One of the ways to invest in startups is through crowdfunding platforms. Unfortunately, in Russia they are not very developed and the minimum amount of investment through them is quite high. But all the companies represented on the site are subject to mandatory verification. There is also the possibility of investing in startups directly. For reliability 6 points.
The entry threshold for this type of investment is not high. 10 points.
If you decide to withdraw money or redistribute it within the share exchange by selling all or part of the purchased shares, then you will need to sell them on the exchange at a price below the market. The lower the price you set, the faster your shares will be bought. 7 points.
For the most profitable investment, you will have to devote your time. It will be necessary to track changes in the value of shares on the exchange, selling and buying them. There is no manager here, so you have to do everything yourself. 5 points.
Pros and cons of this investment method:
Pros:
- Convenient and simple investment procedure.
- Very low entry threshold.
- High potential return.
Minuses:
- High risks in passive investment.
Conclusion. If you decide to invest in startups, then it is better to use exchanges. You will pay about 5% for withdrawing money, but you will be protected from scammers.
8. Currencies and precious metals.
Surely, among your friends and acquaintances there is a person who, with a smart look, claims that money should be kept in gold (platinum, dollar, pound, yen, etc.). This approach says that a person does not understand investing, but simply uses popular “stereotypes” among the people.
For example, if you look at the dynamics of gold prices, you will see that since 2012 it has depreciated against the dollar by almost one and a half times.
If you decide to do without the services of managers and independently buy precious metals or currency in order to store money in it, then this procedure will not be difficult.
You can buy currency in bank branches, or by using the services of brokers (which will be more profitable than buying through a bank). You can also change currencies using online and offline exchange offices or payment systems.
Precious metals can also be bought from banks. And it became possible to purchase gold using the WebMoney payment system.
Also, do not forget about cryptocurrencies, for example, Bitcoin, which, according to all forecasts, will rise in price in the long term. The purchase of these assets will not be difficult, so I put 8 points.
Buying precious metals or currencies for long-term investment primarily protects you from the depreciation of the national currency. For many countries with weak currencies, this is a reasonable solution. But courses behave unpredictably, so there may not be any profitability. 2 points.
A beginner does not know which direction the course will go in the near future, so his investment is more like gambling. Even if now people prefer to keep their money in dollars, what is the guarantee that oil will not rise in price in the near future along with the ruble?
You can probably protect yourself from the depreciation of the national currency by keeping half of your money, for example, in dollars, and the other half in rubles. So when the rates fluctuate, you will not lose anything, but you will not earn anything either.
Profitability depends on luck and I would bet everything 2 points.
The entry threshold depends on the type of asset and on the method of purchase. On the exchange, 1 lot will cost at least $1,000, and through exchange offices or payment systems, you can change amounts of several dollars. So anyone can buy currency or precious metals. 10 points.
You can sell currency as quickly as you can buy it. In exchange offices and exchanges, this is done almost instantly. Gold is also a highly liquid asset. 10 points.
In general, attempts to influence profits by tracking rates and then selling assets already turns you into a trader. And I would not attribute trading to investing. Therefore, I understand investing in currencies and precious metals as “put and forget”. So 10 points.
Pros and cons of this investment method:
Pros:
- Able to protect against depreciation of the national currency.
Minuses:
Conclusion. Buying precious metals and currencies for a beginner is a very unpredictable way to invest money. You can reduce risks and increase profitability either by entrusting money to a manager, or by independently studying trading in the foreign exchange market.
9. Securities.
I think that most people from securities are familiar only with stocks. The most financially literate will probably be able to name more bonds. Only a few know how to invest money in securities.
In fact, buying securities is no more difficult than buying a currency. You also need to contact a major bank or broker. 7 points for simplicity.
When buying securities as a beginner, making a profit is a big question. And, if even a beginner can count on a small income when investing in bonds, then the stock market can bring a loss to a novice investor. 3 points for profitability.
In fact, usually low returns entail low risks, but not in this case. There are high risks in the stock market. 3 points for reliability.
You can start investing with a small amount. The entry threshold starts at about 1,000 rubles. 9 points.
Securities can be sold on the stock exchange in the same way as you bought them. This asset is considered to be quite liquid. I bet 10 points.
Again, if a person begins to manage his securities on his own, then he is already turning from an investor into a trader. Therefore, here we consider only passive investing. 10 points.
Pros and cons of this investment method:
Pros:
- Simple investment procedure and low entry threshold.
Minuses:
- For a beginner, this is a risky and low-yielding way to invest money.
Conclusion. If you have already decided to invest in securities, then it is better to contact a professional manager who will manage your funds for a small commission. Investing in the stock market on your own as a beginner is more like gambling than investing.
10. Real estate.
There is one stereotype among people: “ The most reliable investment of money is the purchase of real estate". But do not forget that real estate includes not only apartments, but also various buildings, structures, water bodies, forests, etc.
In general, there is some truth in this, because many people want to save up for an extra apartment by old age in order to rent it out and get a good pension increase. And in which case you can sell it and get a good capital.
You can invest in residential or commercial real estate, under construction or already built, suburban or located within the city. Ease of investment also depends on the choice of the type of real estate.
To invest in residential real estate, you will need to contact a realtor, look for suitable options, draw up a lot of documents and, possibly, make repairs. As for me, the procedure is quite dreary.
If you decide to buy commercial real estate, then the hassle becomes much greater. You will need to keep accounts, pay taxes, manage facilities, re-register energy supply. On average, for convenience, I would put 2 points.
As for profitability, you can receive no more than 1 percent per month from residential real estate with a long-term lease. This is 7-10% per year. The renting of residential facilities by the day turns into work and is not considered.
If you expect to sell it more expensive after a while, then it is far from a fact that prices will rise. In general, for profitability, I would bet 3 points.
Real estate, indeed, has a high reliability. Unless, of course, this is not an object under construction.
Even if real estate prices fall, you will continue to make a steady income from rent. For reliability, I put 9 points.
The entry threshold is high, even if it is a collective property purchase. The minimum investment amount starts from several hundred thousand rubles. I will put 2 points.
It often happens that in order to quickly sell real estate (especially commercial) you have to set a very low price. Sometimes objects cannot be sold for several months. I bet 3 points.
If we consider a long-term lease of residential real estate, then you will not have to spend much time on management. You will need to find tenants once and then collect money once a month. 8 points.
Pros and cons of this investment method:
Pros:
- Clear scheme of income generation.
- High reliability.
- You do not need any special knowledge and experience in investing.
Minuses:
- High entry threshold.
- Low profitability.
Conclusion. Investing in residential real estate is understandable to every way of investing money. This method is especially liked by conservative investors who do not want to take risks.
11. Investment in business.
Of course, here we will not talk about investing in creating a business from scratch, but about buying a ready-made company. Starting a business from scratch is hard work with unpredictable results. An investor is interested in an established business with streamlined processes that brings a stable income.
In order to find a company to buy, you can use newspapers or bulletin boards. But most often, the entrepreneur does not talk about the sale of his offspring, so as not to raise doubts among employees and customers.
Therefore, they prefer to contact broker companies that will sell their business. They also distribute information about the sale among friends and acquaintances.
Once you have found a suitable business, you will need to audit it to make sure that business processes are in order. This whole procedure for a beginner can turn into an insurmountable obstacle. 1 point for simplicity and clarity.
Super profitable businesses rarely sell, so you should count on average profitability. Of course, profitability strongly depends on the type of activity and the quality of management. I will put 6 points.
Many people think that entrepreneurs only sell unprofitable businesses. But actually it is not. The reason for the sale may be: an urgent need for money, disagreements between the owners, loss of interest, lack of time (especially if one entrepreneur has several types of business), etc.
The audit will help analyze the reliability, profitability and prospects of the business. Therefore, the chance of buying a loss-making asset is very small. I bet 7 points.
The entry threshold for this type of investment is relatively high. Yes, there are very small companies, but they cost far from a penny. Buying a profitable business with streamlined cost processes is similar to buying real estate.
Often people join groups to buy a business. For example, several friends and acquaintances buy a company together. But even in this case, the entry threshold remains high. I will put 2 points.
If you urgently need money, the company can be sold. If your business is unprofitable, then it will be difficult or almost impossible to sell it. A profitable business is easier to sell, but most often this procedure takes a lot of time. So 3 points.
If you manage the acquired company on your own, then turn from an investor into a businessman. Therefore, you will need to hire an executive director who will manage your business. But even in this case, you will have to control it and analyze the activities of the company.
Yes, and you will need to deal with the selection of a manager yourself. So 2 points.
Pros and cons of this investment method:
Pros:
- Reliable and profitable type of investment.
- You can choose the business that you like and understand.
Minuses:
- Complicated procedure for selecting and registering a business.
- High entry threshold.
- It will be necessary to delve into business processes and to some extent manage the company.
Conclusion. I believe that if you have enough capital, buying a ready-made business is one of the best ways to invest money. But it is desirable that you like the type of activity of your company and that you have at least minimal experience in doing business.
12. Investments in content sites.
This way of investing money is similar to investing in a business, but with a simpler purchase and management procedure. Again, you do not need to create and promote a site. You can just buy a ready-made project.
The website itself is more of a tool than an asset. The real asset is the audience that visits this project every day. The site owner makes a profit by displaying ads, affiliate programs and other sources of monetization.
To buy a site, you can use the exchange. One of the most popular exchanges in Runet is Telderi.ru. In the list of sites for sale, you can see all the information on projects: audience size, profitability, development dynamics, payback period, etc.
The transaction is protected and follows the rules of the auction, where the site goes to the buyer who offered the highest price. For simplicity, you can put 4 points.
Usually normal sites are sold at a price equal to the income from it for 12 months. That is, if the project brings 20,000 rubles a month, then the fair price for it will be 240,000 rubles.
But in most cases, on such sites, monetization works far from 100%. Thus, after “twisting” monetization, it will be possible to recoup the contribution in 6-10 months. 7 points for profitability.
If the site is made with high quality and promoted only by "white" methods, then such a contribution can be called reliable. Of course, if you want the project to bring you profit for more than one year, then you need to carry out at least minimal work on it. But, for a year or two, the project will be enough without additional investments. 8 points for reliability.
In general, some sites are sold very cheaply. You can find it for 500 rubles. But such sites should not be of interest to the investor.
You can buy as one expensive and high-quality site, as well as several medium ones. Therefore, I do not advise you to start with too small amounts. I will put it at the threshold of entry 6 points.
If the project ceases to be of interest to you or you need money, then you can always sell it on the same exchange. For this I bet 4 points.
When buying a site that will bring you passive income, you can make a profit without doing it at all for a year or two. But, over time, without administration and updates, the project will lose its audience, bringing less and less income. I will put 4 points.
Pros and cons of this investment method:
Pros:
- Convenient investment amount for everyone.
- High investment security.
- You can develop the project, increasing profits.
Minuses:
- You need to have minimal knowledge about sites and how to monetize them, or seek help from an experienced specialist.
Conclusion. Investing in content, information and other similar sites is one of the best ways to invest. This type of investment can easily be turned into a business by working on purchased sites and increasing profits.
Which method do you like the most?
1,130 Reading time: 10 min.Whether it's earlier - keep money at home under your pillow or in a savings bank. And that's it! Today, there are a lot of ways to invest your hard-earned money: from traditional bank deposits to innovative blockchains. Eyes widen, right? Find out from this article where to invest money in order to receive a monthly income, and the capital will find you.
Foreword: what does a novice investor need to understand?
Note that we do not use the word “know”, because it is impossible to know everything in the world, and in general there is Google-Yandex-Wikipedia for this. But the key concepts need to be understood. If only because the advice given in the article on how to invest money so that it works for you is based on the experience of serious investors and financiers. Plus, you need to constantly read the news, because the economy is changing like the weather over Bermuda, and in order not to “suck in”, you need to be in the know.
Valuable advice: Determine the risks for yourself, that is, what you are willing to sacrifice and how far to go in order to have a profit, and so that the profit does not have you.
5 rules for investing
These are the golden rules, that is, tested to a jeweler's accuracy.
Don't forget about them:
- The straw must be laid.
For a rainy day, you should have a reserve. How much to postpone? Experts believe that a good "mattress" will be an amount that could cover your expenses for six months. Let's say you earn a thousand dollars a month - you need to have six in the "stash"! The question is brewing: where to get them, these "draft" ones? learn to save and save money. If you cannot control your income so that you can save, it is too early for you to invest. - Learn to diversify, gentlemen!
With this complex term, we want to explain a simple one: don't put all your eggs in one basket. Distribute your 100% capital across several channels, and even better, so that these channels do not touch. For example, if you bought shares of an oil company, then it is better not to put it in a bank associated with it. Forget even dollars: invest somewhere that does not depend on oil. An excellent alternative is ecological energy sources. - Calculate the consequences of failure
It’s sad to think about a losing option, but believe me, this is not pessimism, but pure calculation. What happens if the bank where you have a deposit fails?Valuable advice: start investing with the amount that in which case it will not be a pity to lose.
When it doubles itself, you can add another source and even increase the risk category.
- Share and receive
It is very difficult to be a single investor. So try to be in a team, attracting co-investors, working with trainers, going to seminars. Thus, you share experience with others and reduce the risk of mistakes. By the way, the risks of mutual investment are distributed among several people. - Passive income required
Playing on the stock exchange, investing in dubious but fast-growing cryptocurrencies is great, this is youth! But you should always have a passive source of income. Simply put, combine this rule with the first. Make a bank deposit at interest and save this interest for a rainy day.
How much can I start investing?
Theoretically, at least from 100 rubles! The question is how soon the income you receive will begin to satisfy you. Try to accumulate at least a four-figure reserve and start investing with this amount.
TOP 10 most profitable ways to invest money
And so, we got to the main dish. Remember that this article is one big piece of advice on how to invest in order to make monthly profits. We are not talking about one-day projects, unethical projects and legally prohibited ways to get rich quick. Only legal and only proven ways!
No. 1. Invest money in the bank
The scheme, proven by generations - and it has a big "but!". Namely, low return on capital. How much do banks promise for a deposit in the national currency? What is the inflation rate in the country? The same thing: this investment rarely justifies itself as a source of income. But it helps to preserve the value of capital.
Valuable advice: if you need to “overhold” an amount not exceeding 1,400,000 rubles, feel free to put it in the bank. In the event of bankruptcy, according to the law, all your money will be returned to you.
By the way, in Russia, Sberbank is the most trustworthy - no wonder, this is the bank with the largest share of state assets.
- Your money is insured;
- You can withdraw them at any time by terminating the contract;
- You can even start with a deposit of 1000 rubles.
- Income barely covers the rate of inflation;
- If you withdraw money early, most likely you will not receive interest for the year.
No. 2. Shares and bonds
They differ from deposits in a higher level of profitability, because the risks are already higher.
Stock - This perpetual certificates of equity participation in the capital of companies. Bonds are confirmation of loans, that is, you have provided a certain amount of money for a certain period, and after its expiration, the amount will be returned to you with interest.
The difference between the former is that dividends, that is, income from them, can be received at least throughout life.
If you have no time to follow the course of securities, you can entrust transactions to a broker. This is an intermediary who, on your behalf, will trade on the exchange and take a certain commission for this.
- You can buy from 1 stock or bond;
- The yield is higher on securities than on deposits;
- You become a co-manager of the company whose shares you hold. It may sound ridiculous in relation to the holders of a couple of Gazprom shares, but according to the law it is so;
- You can invest in several different companies, thereby expanding the risks;
- It is necessary either to constantly monitor the securities market, or to pay a commission to the broker;
- The risks are greater, which means that there is also a chance to make a loss in the event of a fall in the share price.
No. 3. Buy and sell foreign currencies
If we recall from the theory of microeconomics that there are three types of investments - short-term, medium-term and long-term, then currency transactions almost always belong to the first type, sometimes to the second. Because when you buy dollars, you will hold your breath and watch the exchange rate: as soon as it reaches a peak, you will sell some of the money, right? In addition, if you “overdo it”, then inflation will eat up part of your money in a few years.
Valuable advice: abandoning the remnants of the past - changers and exchange stalls on the street, make your assets electronic and trade on online exchanges. For example, in Forex.
- The initial capital can also be small;
- There are a large variety of currencies, which again contributes to the diversification of risks.
- Forex beginners are not always lucky, on the contrary: about 80% fail at the initial investment;
- It is necessary to study the principles of currency market fluctuations and take into account many factors;
- You also need to monitor the exchange rate on a daily basis.
No. 4. To buy an apartment
This is a good investment in the future, because no matter what happens, inflation will not eat a roof over your head. In addition, by investing money at the construction stage, you will save a lot on the price per square meter. The main "But!" in this case, a high amount of starting capital comes into play: after all, no one will sell an apartment for $ 100, even in the outback.
Valuable advice: Check out the mortgage financing programs in your community.
Perhaps you can buy an object of interest by paying only 30% of the price and will be able to repay the mortgage over the next years from the income. But then it is better to rent it out as an office or as a housing stock in order to be an investor, and not a slave of payments.
- Stability and safety of capital;
- Opportunity to earn from renting;
- Possibility to resell at a higher price in the future.
- Large start-up capital required;
- Low liquidity means that the sale of the asset will be delayed for some time;
- It is necessary to periodically repair, in this case it means to raise capital.
No. 5. Open IP
Only those who burn with an idea and who are ready to take responsibility for their decisions will succeed in becoming a businessman.
In general, this path involves a lot of worries:
- Calculation and composition of the business plan;
- Assessment of risks and competition in this area;
- Calculation of payback periods;
- Selection of premises for rent and equipment, if necessary;
- Personnel search.
The advantage is the most important: you are your own boss. If you want - attract co-investors, if you want - take a loan to finance a business, fortunately, in our time this is not a problem. However, the risks of losing more than earning are always high.
No. 6. Investments in gold and precious metals
We are talking about that eternal and liquid material that always attracts with its brilliance. There has not yet been a period when an investment in gold did not pay for itself over the years, or at least did not allow saving capital. The price of silver, gold, platinum, palladium will only rise because their stocks are shrinking. How can you invest in precious metals?
- Buying bullion, however, you will have to pay an 18% tax - so it is profitable to invest in this form for many years;
- Buying coins for which you do not need to pay tax, and in addition to jewelry value, they may have numismatic value;
- Opening an account "in metal". Yes, this is also possible - you do not need to buy an ingot or a coin literally, it is enough to convert the invested amount into virtual grams;
- Investments in securities of mining companies. Again, risky and no one knows when it will pay for itself.
No. 7. Invest in art
If you have a taste or, perhaps more correctly, a “smell” for what is called a work of art, you are in luck. Because if you invest well, you will become rich. True, not immediately - maybe even after the death of the author or his own. Because this investment is classified as long-term.
But if you want to enrich yourself even before moving to another world, pay attention to antiques. That is, those whose age exceeds 50 years, and which carry an exchange value. Here you need to have an impressive amount, because no one will offer the Bible of the 13th century for a couple of thousand rubles.
No. 8. Become a franchisee
Why promote your business while spinning like a squirrel in a wheel? If you can buy the right to sell from a well-known global company. Yes, you will also have to be active here, but you will start with a prepared springboard.
The advantages of franchising will be the following:
- Fast payback period;
- No advertising costs;
- Training and support of a businessman by experienced gurus;
- A small level of competition, since the franchise plan provides for a competent distribution of franchisees.
Here you will not have as much freedom as when opening your own business, and you will have to follow a clear algorithm. So this type of investment is for those who do NOT like to take risks too.
No. 9. Stock market and binary options
Predicting the value of assets over time is the essence of binary options.
It's like tossing a coin into the future: heads up or a profit - you'll make a profit of up to 80% of the bet. If it comes up tails or a loss, you lose your entire bet. True, binary options differ from roulette in that you need to carefully study the theory in advance.
No. 10. Internet projects
As in the previous case, here you can earn and invest without leaving your home. Well, or at least keeping a laptop with the Internet at hand.
You can invest in the following Internet projects:
- Startups raising funds to complete a project. By the way, popular ICO companies for blockchains are the same way of investing;
- Create and promote your own website. You can earn both on the sale of products and on ad impressions;
- Investing in profitable investment projects.
Let's talk banks...
Returning to the most reliable source of investment - bank deposits, we ask: which banks can be trusted? We left aside the already well-known Sberbank of Russia and singled out 5 other best ones according to depositors.
1. Tinkoff Bank
You can safely call this bank a Russian economic miracle. So far, not a single branch has been opened, depositors are serviced online. Here are the most attractive conditions for deposits from 50,000 rubles: at a rate of 7% per annum. You can transfer interest to the card or leave it on the account, capitalizing them further.
2. Sovcombank
This institution has been registered since 1990 and since then it has practically not suffered crises. Deposits from 30,000 rubles, interest 7.6 per annum. You can even terminate the contract ahead of schedule, receiving interest for 3 or 6 months.
3. UniCredit
A bank with a solid foundation in Europe, operating in the Russian Federation for more than 25 years. It is considered the largest Russian bank with foreign capital. Rates on deposits up to 8.35% per annum in rubles and up to 3.23% in dollars. Interest can be withdrawn monthly or left, capitalizing them.
4. Ural Bank for Reconstruction and Development (UBRD)
The largest institute in the middle part of the country, has more than one and a half thousand branches in the Russian Federation. Rates in rubles can reach 11% per annum, interest is accrued not monthly, but every 50 days. You can get the highest rate by opening a deposit online (the use of online banking is free).
5. Absolut Bank
It has been operating in the country's market since 1993. It offers deposits at a rate of up to 8.5% from 30,000 rubles, in general, the conditions are the same as in Sovcombank, you can replenish your account, but early termination is not provided. This means that if you want to return the deposit, you will not be paid interest.
Are you at risk? 5 ways to invest money profitably
It has been proven that the most profitable investments are accompanied by a high degree of risk. And usually we are talking about contributions to new projects, technologies, research. What will be a hit in the investment market in 2019?
Startups
It's been at the top of the rankings for a year now. The vastness of the Internet offers thousands of young ideas that are ready to be realized at your expense. Some are ready to raise your capital over the next few years, others may turn out to be unprofitable. Therefore, before investing in a startup, you need to carefully study its essence and conduct a risk analysis. Specialized sites offering such projects for investment should provide analysis data free of charge.
Private lending
The method of accumulation is as old as the world: you provide a loan to a specific person or organization, and after a while you get the money back with interest. On the basis of simplification of loans in electronic format, many microcredit organizations have been formed in Russia. You can become a co-founder of one of these. The high risk lies in the fact that no one guarantees the honesty of the borrower and that the money will be returned on time.
PAMM accounts
Investments in stock and currency funds, implying the transfer of account management by specialists. Your broker or manager will make transactions on your behalf, put into circulation the accumulated interest, in a word, do everything to increase the capital in the account. It all depends on how well you choose the manager. Of course, you need to understand something in PAMM accounts yourself.
Mutual funds or mutual funds
You and several other investors collectively own the investment, your share is called a "share". The difference from "dead" deposits is that the shares are traded on the market, just like shares.
Mutual funds are:
- Open, from which you can exit at any time with your capital;
- Interval, allowing you to exit only at certain intervals;
- Closed, which, like deposits, have a working period - you can exit only after it expires.
Profit on mutual funds can reach 50% per annum, although taking into account all the risks and falling prices, the real figure is about 20%. Who guarantees high profitability from such projects? The manager himself, whose earnings depend on the profitability of the mutual fund. In any case, this type of investment is recommended as long-term.
Blockchains
With the advent of decentralized ecosystems, confirming operations on the principle
A bank deposit (or bank deposit) is money deposited with a credit institution (bank) in order to receive an income in the form of interest at the end of the deposit term.
There are many types and conditions of deposits. There are term deposits and demand deposits. In the first case, the deposit is made for a certain period and can be withdrawn completely without loss of interest only after this period. Demand deposits do not have a shelf life and are returned at the first request of the depositor, but the interest on them is significantly lower.
Contribution is an understandable and relatively reliable investment.
Opening a deposit is easy. To do this, you don’t even have to leave your home: many banks allow you to open deposits through a mobile application or their website. Of course, for this you first need to become a client of this bank.
The main advantage of the deposit as a type of investment of free funds is the insurance coverage of the Deposit Insurance Agency in the amount of 1.4 million rubles. Within this amount, you can confidently place your deposit in any bank that has a license from the Central Bank of the Russian Federation. If the bank bursts, the state will return the money along with interest on the day the license is revoked. By the way, since 2014, more than 300 banks in Russia have been deprived of their licenses, and their depositors have certainly suffered.
The disadvantage of the deposit is that, compared to an individual investment account, it provides rather modest opportunities for increasing funds.
Individual investment account
An individual investment account (IIA) is a type of brokerage account or a trust management account of an individual opened directly with a broker or trustee (for example, in a bank), which has two types of tax benefits to choose from and certain restrictions apply.
The concept of "individual investment account" was legally enshrined on January 1, 2015. IIS can be opened both by individuals - citizens of Russia, and people who are not citizens of the Russian Federation, but living on its territory for more than six months a year.
The maximum amount that can be initially put on IIS is 400,000 rubles. During the year, the account can be replenished with an amount not exceeding 1 million rubles.
A big advantage of IIS is the possibility of obtaining a tax deduction.
It is paid in the amount of 13% of the amount invested for the year, but not more than 52,000 rubles. That is, with 400,000 rubles, and with 1 million rubles, you can return no more than this amount. This option is suitable for you if you have a permanent job and the employer pays taxes for you. There is another option - to choose tax exemption.
The main disadvantage of IIS is that, unlike a deposit, it is not insured by anyone. However, if you open it in a reliable bank (it has been operating on the market for a long time, it is in the top 20 rating of Russian banks, there is no reorganization regarding it) and you choose the right investment strategy, you can earn much more. In addition, in order to enjoy tax deductions, an investment account must be opened for at least three years, during which funds cannot be withdrawn.
How much can you earn on deposits and IIS
Let's compare how much you can earn if you make a deposit of 100,000 rubles and open an individual investment account for the same amount.
Deposit profitability
The weighted average interest rate on deposits for a period of one to three years in Russia as of September 2017 was 6.83% per annum. If we calculate income based on this interest rate, then in a year it will be 106,830 rubles. By reinvesting this amount, in two years you will receive 114,126.5 rubles, and in three years - 121,921.3 rubles. Net income - 21,921.3 rubles.
Profitability of IIS
Strategy 1: invest in government bonds
Having opened an IIS, you can invest in such a reliable instrument as federal loan bonds (OFZ), the issuer of which is the Russian Federation represented by the Ministry of Finance of the Russian Federation. The yield to maturity of OFZ-26205 at the end of November 2017 was about 7.3%. Taking into account the tax deduction of 13%, the return on investment will be 20.3% in the first year. And for three years (the account is opened for a period of at least three years), the average yield will be about 11.6%. As a result, in three years you can get 138,504 rubles. Net income - 38 504 rubles.
Strategy 2: investing in corporate bonds
Another reliable and rather profitable strategy is investing in corporate bonds, the yield on which is slightly higher than on OFZ bonds.
For example, these can be bonds of Gazprom Capital and Rosneft. The average yield on the bond portfolio of these companies at the time of writing is 7.97%. If you put 100,000 rubles on the IIS and, as a result, receive a tax deduction for one year, then after three years we will get an average figure of 12.3% per annum. By the end of the third year, the account will already have 141,020 rubles. Net income - 41 020 rubles.
By the way, for individual bond issues of these issuers, coupon income will not be taxed starting from 2018.
Strategy 3: investing in stocks
The biggest income can come from investing in stocks. However, this is also the most risky investment tool, because even if the shares of a company have shown growth over the past periods, this does not mean that this trend will continue in the future. Experienced investors advise investing in several types of stocks at once, so that a drop in the shares of one company can be offset by an increase in the shares of another company. This is called portfolio diversification.
The most proven investment is the shares of "blue chips" - the securities of the largest, liquid and reliable corporations. Among Russian companies, they include shares of Gazprom, Sberbank, Alrosa and others.
If at the beginning of 2016 you had equally invested 100,000 rubles in ordinary shares of the three largest Russian corporations - Gazprom, Sberbank and Lukoil, the average return on shares of which in 2016 was 43.93%, then only for one a year you would have earned 43,930 rubles. To this amount, add a tax deduction of 13,000 rubles. It turns out that in just a year you would have earned 56 930 rubles. At the same time, growth over three years is much more difficult to predict.
Outcome
The deposit will suit more conservative and cautious people, probably the older generation. Opening investment accounts - for more risky people. This is not just a fashion trend, but a good opportunity to earn money.
2015-2016 promise to be difficult for most Russians. The economic situation in the country has heated up to the limit. And the general situation in the world suggests that the crisis is not far off. Many are already asking the question: “Where can you invest money so that it works and generates income? » . There will be many similar questions in this article. We will try to give answers to them, because the ruble is losing its position in the financial market every day. And the issue of capital preservation is becoming more and more acute.
The crisis in Russia is close. How to earn on your savings?
Where to invest money to make it work? This is the main question posed by the majority of Russian citizens. After all, it is no secret to anyone that the political and economic situation in the world has become extremely aggravated in recent years. The instability in the financial market now and then affects the daily lives of many people. The ruble is falling at an incredible rate, this is due to many factors. First of all, the Russian economy was affected by the crisis in Ukraine and the sanctions imposed by the EU in connection with it. But to a greater extent, according to experts, the cost of oil is to blame, which in the last year has dropped to a maximum level. All these factors significantly influenced the ruble exchange rate. Ever since the national currency lost the confidence of its citizens, the Russians have been asking the question: “Where is it safe to invest money?” After all, many experts argue that the ruble can devalue. And this, in turn, will lead to the fact that many will lose their savings. But that's not all. Analysts are confident that in 2015 there will be massive job cuts and wage cuts. Therefore, speaking about where it is now profitable to invest money, many still think about how to make money on them.
Investing money in a bank. Benefit of the deposit
Where to invest money to make a profit? One of the most popular ways for Russians to keep their savings is a bank. Of course, many use banks solely as a financial cushion with the amount of funds to live on for a short period. But you can approach this option from the other side. Due to the fact that this year the Central Bank of Russia raised the key rate to 17%, it has become very profitable to put savings on deposit. After all, interest rates have become much higher, especially for deposits in the national currency. Although deposits in foreign currencies can also be no less profitable. In addition, some changes were made to the tax code. That is why, using a deposit, you can not only invest money profitably, but also protect your savings from the risks associated with it. When choosing this method to save your own funds, experts recommend contacting the most trusted and reliable organizations. For example, Sberbank, Gazprom, VTB and others Making a deposit will not take much time and, in turn, will bring a pleasant monthly income. If you invest a large amount, then you can even live on the interest offered by state banks today!
Real estate investment
Answering the question: “What to invest money in in 2015?”, Many experts recommend turning to such a proven and safe type of investment as real estate. Everyone knows that it is she who takes first place in terms of trust from citizens. But often many people use square meters solely as a way to save their savings. Forgetting that such an investment instrument can bring a considerable income to its owner. Of course, the acquisition of real estate will require considerable funds. But if you skillfully manage them, then the profit from the acquired real estate will cover all costs. It is best to buy an apartment at the initial stage of building a house. Such projects bring the highest income. This is especially true for luxury housing. In addition, it is not at all necessary to sell this property in the future, there is always the opportunity to rent out your square meters. But for this you need to carefully consider the infrastructure and location of the apartment when buying it. Carefully inspect everything that may negatively affect the client's interest: number of storeys, communications, view from the window. All these little things play a very important role when renting an apartment. But at the same time, having executed a profitable deal with a client, you can count on a good monthly income. What is as profitable to invest money as in real estate?
Forex market and PAMM accounts
Where to invest money to make it work? Often, reflecting on this issue, experts confidently talk about the Forex market. In the investment market of Russia, a new form for investing funds called PAMM account has recently appeared. Experienced players declare with confidence that with the help of such accounts you can earn good money. This is especially beneficial today. After all, the principle of earning money is precisely that it is necessary to play on currency races. And today there is just such a trend in the financial market. But experts warn that almost 90% of beginners, starting to work on the Forex market on their own, lose their savings. Firstly, there is not enough experience and knowledge, and secondly, for many, Forex trading is just a side type of income, which is why there is not enough time to delve into the intricacies of the foreign exchange market. Therefore, experienced players often advise beginners to use the services of a professional trader. Well, or, in extreme cases, take a series of training courses, which are often offered for free by investment companies and exchanges.
Securities and shares
During past crises, many Russian citizens, at the risk of losing their savings, invested them in securities and stocks. Those who at least somehow understood this business, after a few years already had a good income. Well, those who had no experience in working with stocks lost their last savings. Answering the question: “Where to invest money to make it work?”, we can say that investing in shares will bring a decent profit. But this can take years, and you also need to have a sufficient level of skills and knowledge to choose a worthy company. It is best to trust a professional manager with a good history of profitability. But even in this case, one cannot be one hundred percent sure that the shares will bring profit. After all, today's market is so volatile that it can devalue the shares of absolutely any company in just a couple of minutes. And experts advise: before choosing this type of investment, consult with experts or use special courses that will help you gain some knowledge in this area.
Investing in gold and other metals
There is a category of citizens in Russia who, each time faced with a crisis problem in the country, absolutely do not ask themselves the question: “Where to invest money in order to earn money?” This category includes people who trust only this type of investment, like gold. This is not surprising. After all, since ancient times, gold has been considered. On the modern market, the situation has changed somewhat, but the fact that gold is generally becoming more expensive is an indisputable fact. Of course, over time, the trends of such investment have changed somewhat, and today bank customers are successfully investing not only in gold, but also in other metals. These include silver, platinum and palladium. There are several ways to invest your savings in precious metals: buy a gold bar in a bank (but you will have to pay a 13% tax), buy gold coins (you can find them in Sberbank and other similar large organizations), buy back securities (only those that are secured by gold, through the stock exchange), as well as open a non-cash metal account. For those who have never used this type of investment, it is best to stop at the last option.
New of the season! Investing in art
It is not surprising that, facing the question “where is it profitable to invest money now”, many choose not quite standard types of investments. Recently, investing in art has become fashionable. But this is not just a fashionable trend, but really a very promising type of investment. After all, with some lots you can get a benefit equal to 100 or even more percent of its value. But there are also some important points. In order to really make money in this market, you need to understand art to some extent. Or use the services of experts and appraisers. Yes, and understand fashion trends, so to speak, try to predict what will be at the peak of fashion in the near future. It all sounds very strange and complicated. In fact, the profit from this type of investment is high exactly as much as the work in this area is difficult. It is for this reason that this type of investment will not be mastered by everyone. But everyone wants to invest money profitably!
Investing in the Internet
Where it is really profitable to invest today is the Internet. After all, the Internet is present in the life of every person. Every year this type of investment is gaining more and more popularity. There are a lot of investment options on the Internet, everyone will be able to choose the most suitable way of earning for themselves. The most important thing in this case is not to stumble upon scammers. After all, with the growing popularity of this type of investment, the number of cases related to customer fraud has also increased. In order not to become one of the deceived investors, it is necessary to carefully study all the documentation, and, if possible, any information about the selected company. Where to invest money to get more? The choice is not just wide, but huge: HYIPs, cryptocurrencies, sites, MFA sites, etc. Starting from creating your own website and ending with profitable investment in promising projects, you can earn very profitably. It is difficult to say exactly how much you can earn on investments on the Internet. It all depends on how much money will be invested and which direction the investor will choose. But given the fact that the Internet is becoming more popular every day, the risks of losing your investments are quite low.
Investments in your own business
Where to invest money to earn a simple person? After all, not everyone can decide to give their savings to the bank or buy unreliable shares on them. For the category of citizens who are suspicious of investing in other people's companies, experts advise considering the option of opening a private business. Moreover, now is the right time for this. Foreign companies, due to sanctions and the unprofitability of doing business in Russia, will hastily leave the Russian Federation. This will reduce competition in the trade market. And the commercial real estate market is likely to reduce the cost per square meter. All this will provide an excellent opportunity for a novice entrepreneur to start a successful business of his own. Where to invest? It is best to turn to basic necessities, clothing or food. The dollar, most likely, will still grow, so you can fill the assortment with national goods and dilute it with Chinese products. Experts also recommend looking at areas such as pharmacy and funeral services. No matter how strange it may sound, but such organizations will always be profitable. Of course, the risks associated with starting your own business are quite high. But the economic situation in Russia today is not too stable. Therefore, such an investment choice can be quite successful! In addition, to reduce risks or with a lack of funds, you can find a worthy companion.
Investing in your own development
Where to invest money to make it work? As you already understood, money can work in different ways. Many, thinking about the issue of investing their own funds, often stop at the choice of self-development. What does it mean? You can, for example, use the accumulated funds to receive additional education or attend expensive courses to teach something. To do this, it is enough to pay in full the entire course for the entire time. The funds will be invested quite profitably, right? Money can be used to educate your children or provide long-needed medical care to your loved ones. In general, even experts believe that such investments are very profitable. After all, the cost of education and medical care is growing every year. In addition, such investments do not require additional knowledge. In general, leading experts insist that you should try to invest your savings in different areas, thus insuring yourself against possible failures. And this means that the question of where an ordinary person can invest money is not so complicated!
Investing even small amounts can effectively increase money. Many people do not dare to try this type of earnings, citing their incompetence in this matter, as well as the lack of thousands of start-up capital. Although such indecision is actually the main obstacle to success, because today you can start making money on investments with $50 in the pocket.
The idea to make money work instead of yourself is really good, but how to implement it, where to start investing for a beginner and how to choose the perfect option? More on this and others below.
Why you want to invest today
The moment will come when you don't want to go to work at 7 in the morning, or go on a trip for a month, but will your job allow you to? What if you get sick and can't go and earn money? In order not to be a slave to yourself, it is better to start investing today.
Why is it beneficial? The best answer to this question is given by Western financiers. They came up with the following Golden Rule:
A person cannot work 24 hours to earn money, while money can work for him all 24 hours a day.
And without vacations, sick days and days off. Money is constantly working 24/7/365 , and therefore a priori are the most efficient worker.
Many public investors believe that bank deposits are not investments, but let's look at an example of a deposit. 1000 rubles under 12% per annum for 50 years, while all profits will be reinvested:
- After 3 years - 1400 rubles.
- After 4 years - 1570 rubles.
- After 10 years - 3100 rubles.
- After 20 years - 9640 rubles.
- After 30 years - 29,960 rubles.
- After 40 years - 93,050 rubles.
- After 49 years - 258,040 rubles.
- After 50 years - 289,000 rubles.
Waiting for you in 50 years 28900% profit.Let's go further. If, under the same conditions, we invest $1000 into the stock market, where the average return 20% per annum, then in 50 years they are waiting for us $9 100 440 . If we invest $1,000 every month, the result will be $40 000 000 .
If we take as a basis 10 years, which is not much ( for example, your child will not have time to grow up yet), and invest $1000 at 50% per annum (average percentage of profit in ) with reinvestment, we get the following picture:
- 1 year - $1,500
- 2 year — 2 250$
- 3 year - $3 375
- 4 year - $5 062.50
- Year 5 - $7,593.75
- Year 6 - $11,390.62
- Year 7 - $17,085.93
- Year 8 - $25,628.90
- Year 9 - $38,443.35
- Year 10 - $57,665.03
Everyone has their own opportunities, but imagine if you initially invest a little more, and report money over the investment period, then the results will grow exponentially.
How to start investing from scratch
Before proceeding directly to investments, you need to clearly define the estimated time frame, the budget available, the goals, how much money you will take and how much you will reinvest.
Since the article is not written for oligarchs or professional investors ( they all know), we will focus on starting from scratch. First of all, you will have to start with theory - to study and, if possible, entice the experience of other well-known investors:, etc.
How to start investing from scratch? - First of all, you need to choose the right tool. In total, the following list can be distinguished:
A suitable option should match both the financial possibilities and the expected return. For example, investing in real estate or land involves a long term and a significant amount, while investing in may require everything. $45, but in any case, you will need a certain start-up capital, which must be taken from free money, that is, without loans, not from money for food or paying bills, without worsening your standard of living.
For beginners with minimal capital, it is better to start with investments in PAMM accounts and. At first, this is beneficial because the money simply will not lie idle. should also not be ignored.
Here we come to risk diversification: try never to put all your eggs in one basket, no matter how profitable the instrument is. If you decide to earn on interest from bank deposits, then put all the money in more than one account in one currency in one bank.
An advanced option on how to start investing with minimal risk is compiling your own investment portfolio, that is, distributing your money between different assets. This may be the purchase of shares of companies from various industries, the acquisition of real estate for various purposes, etc., the main goal is to balance the risks. If several options give a loss, then the profit of the rest will block the minus and bring you into profit.
Where would you like to invest money?
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How much to start investing
The amount of investment can start literally from $10 c - which is available to everyone. However, the return on such an amount will be very low, so it is better to prepare a more substantial contribution.
According to most financiers, the optimal amount to start can be considered $500 . President of the investment giant Capital One Investing Yvette Butler believes that this figure is not taken from the ceiling.
Everyone can raise such money - from teenagers who receive pocket money from their parents, to middle-income family people who will simply save 5-10 dollars a week without much harm to the family budget.
At the same time, the return on a successful investment will already be tangible. Confirms her words and the fact that a very large number of brokers set the minimum bar just in the area $500 .
I agree with this opinion and the co-founder of the project on microinvestments Robinhood Vlad Tenev. His recipe for success for a beginner looks quite simple - find $ 500–1000, buy some inexpensive stocks from “ blue chips", For example, Starbucks and patiently wait for the first dividends for further investment.
You can start investing with almost any amount, as there are penny and penny ones on the market, and brokers also offer a purchase from $10.
CFDs and options are another opportunity to make a profit on shares, and the second option is also fast, because each option has an expiration date, for example, 10 or 15minutes. If in the terms of the transaction you indicate the growth of shares and when the option is closed, the shares will cost more than when buying, you will receive 79% profit.
See below how we made money on Tesla shares.
We chose shares Tesla from the list of assets:
Then they indicated the closing time of the option for 22:10 (after 9 minutes):
It remains to make the investment amount and indicate the main condition, whether the shares will cost higher or lower at the time of closing the transaction. Now a steady growing trend has been fixed behind Tesla's securities, while the price has touched a strong support line, which means that growth will continue now, so we indicated in the conditions UP:
If after 9 minutes the value of the shares is higher than at the time of purchase, then we will receive a 79% profit.
I didn’t have to wait long and look at the price chart at the time the option was closed:
As you can see, the cost of securities has grown, and we received 79% of the investment amount and returned with $80 in total $143,2 :
How to start investing for a beginner - instructions
When thinking about how to start investing, it is important not to lose sight of the fact that a successful start is extremely important for effective promotion.
In fact, no special secrets are revealed here. However, there is an opinion that they do not exist at all. Indeed, even the famous Warren Buffett has repeatedly mentioned that even the most ordinary person can make a small fortune for himself if he clearly sees his goal and patiently moves towards it, without neglecting the little things.
Before you start investing money, it would be useful to read the advice of people who have reached sky-high heights in the financial world and have already managed to write their name into history.
Action.
Bill Gates once said that most people fail to achieve their financial goals, not because of their intellectual or physical incompetence, but because they waste their time and energy irrationally. Being engaged in routine and monotonous work, they kill their potential, but for some reason they continue to hope for good luck in the form of an inheritance from a long-forgotten relative or winning the lottery. At the same time, if they spent less on everyday entertainment and invested more, then after 5–10 years they would have the opportunity to quit their disgusting job and do more interesting things.
Discipline.
This habit should be developed as early as possible and maintained throughout life. The development of discipline will allow you to control your expenses and consistently go towards the goal no matter what. For example, the richest oilman of the 50s Harold Hunt Until recently, he came to work in an old car and ate simple homemade food, which he brought with him in a paper bag. Warren Buffett, even after earning his first billions, continued to live in a house bought in 1958 for $31,500. The essence of this advice is that anyone who is looking for real investment success must have the willpower to maintain a standard of living that corresponds to the level of his income. The loss of discipline will turn into a desire to mindlessly spend what you have earned, which will inevitably lead to collapse.
persistence.
The path to investment success is a constant series of ups and downs. The stories of big businessmen who invested millions in stocks and squandered everything in one fell swoop often flicker as an anti-example for novice investors. But do not be afraid to invest, and even more so to quit this business after the first failures. With them comes invaluable experience, and investing little by little in different projects, the investor is unlikely to lose.
Even the famous admitted that he was on the verge of complete collapse more than once and had a strong desire to give up everything and be content with the remnants of luxury. But there were always people who dissuaded him and, as you can see now, they were completely right. And the received "kicks" only helped the financier to soar even higher.
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