What to invest money in?

Effective investment of money

It is best to spend the money so that it will start making for you. There are a couple of ideas, in all of them it’s all about increasing your assets:

1. Your own business
2. Investment funds
3. The Exchange
4. Real estate

Invest money in your own business

Your own business is a powerful challenge – you need ingenuity, knowledge, dedication (mainly time) and passion. I don’t mention money, because it’s usually not as much of a problem as it seems to people. They often treat lack of money as an excuse – and there are ways to raise money for their own business, if only it looks like it will work.

Invest money in funds

In short: investment funds are a system where you entrust money to specialists and they trade money on your behalf so that there would be more money. They earn a percentage, and in return, they laugh at quotations, market analyses, etc. The money is not only for the money, but also for the money they earn. If you don’t have the knowledge and time to become your own broker – this is where you have a great way out.

The funds have different strategies:

Equity funds invest mainly in shares. They are described as aggressive because here you can gain or lose a lot. Some invest in large companies, others in small companies, and others in foreign markets. You just have to choose what you are interested in.

Bond funds – as the name suggests, they put money into safe bond instruments. Here you can count on security. If you earn very little, but the same applies to losses – a very small risk of losing something. Profit of several percent per year.

Money funds – these funds operate on deposits and other money instruments. You can count them as safe again.

Hybrid funds – i.e. neither this nor that, in fact: and that and that. They travel depending on the chosen profile after what they consider appropriate. It is something between safe funds (bonds, money) and aggressive funds – they invest a part of their money in shares, a part in something safer.

* Real estate funds – the money of these funds goes to the housing market. Land, land, investments in developers, etc.

A lot of that. The easiest and best way to go to a financial advisor and find the language there – they will examine you left and right for at least the following important information:

* how much money you want to spend on investments
* whether you intend to deposit money systematically or with a one-off shot
* What time horizon do you think about – whether it’s a semi-annual game, or you put off your or great-grandsons’ retirement?
* how strong your nerves are – do you care more about safety or do you prefer to risk aggressively, hoping for higher profits?
* etc.

And why is it worth to invest your money in funds?

A big plus for investment funds: in general, you choose a fund according to your preferences (aggressive, stable, etc.) and you stop worrying – specialists (or at least I want to think about them) take care of it every day so that nothing bad happens to your money, and that you can see more and more in your account. Sitting at stock quotations, for example, you have to have a lot of time and nerves made of steel – for people busy with everyday life, it is much better to enter the funds. You pay the commission for the time and knowledge of these people. It is worth it.

Invest money on the Stock Exchange

This is where the ride begins. This is a market for those who know and like risk. Of course, you can also manage these risks. Once you have first-hand experience with funds that are inherently safer, you can start biting into the stock exchange. Here you can earn a lot, but also if you do not control emotions and lose a lot.

You can approach the topic of the stock exchange in this way:

1. start reading books and ebooks about the stock exchange and discussion forums;
2. set up a brokerage account;
3. pay a portion of the money that you can experiment with and the loss will not be painful;
4. start buying and selling.

Apart from knowledge, market tracking, technical and fundamental analysis, the essence of the stock exchange is above all human emotions and the psychology of the crowd. The fact that you know that you shouldn’t sell now, for example, has nothing to do with the fact that at some point you start to panic together with the crowd and despite everything you place a sale order. Then you usually spit on your beard.

Playing the stock market requires you to learn your emotions.

Invest money in real estate

Looking at what is happening with the prices of flats, such a tormenting thought comes to mind – if I knew and could, I would have bought a flat a few years ago. Now we don’t know when this housing bubble will burst. Anyway, investing in real estate has a lot of advantages: you can choose what you want to buy and where. Whether a flat or land.

Real estate is one of those investments where you buy, forget and then sell with (hopefully large) profit. Of course, everything depends on whether you choose skillfully – for this you need to analyze and track the market. And certainly the actions of the government because their decisions can be a lot of confusion.

Advantages: in fact, you don’t need strictly speaking money to buy real estate. Here you can ‘leverage’ – that is, if you are creditworthy, you can buy a mortgage apartment. In the case of funds and stock exchange you have to start with your own cash. No here – this is a very interesting way to earn money you don’t have. You buy with the bank’s money, pay off relatively small installments and then…. Well, that’s what it’s all about:

if it’s an apartment, you can decide whether to rent or sell it. You have to remember about taxes – now you will have to pay a lot of money for the sale of an apartment 5 years ago if you do not reinvest in a residential/construction project, unless you register in this apartment – then you can sell without tax after just a year. There are also a few other tricks – if you are interested, please refer to Google.


poor fluidity. While on the stock market from the decision to sell just a few clicks away, it is not so easy with flats/ground. Here you have to freeze your cash register for a longer period – at least a few months. Settlement of courts, formalities, notaries, etc. is dragging on

Uncertainty about the developer. You are buying a new apartment – well, you don’t know if it’s going to slip and what standard of finishing is going to be. Often you do not know if under the window after half a year they will not build you another storey building eliminating the guaranteed beautiful view.

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