The American dream: to start making money, then make money with money, and, finally, to make big money with big money – Paul Erdman.
Just keep money at home is not just wasteful, but stupid. Since any currency is subject to various risks and inflation, not to mention the fact that using your savings can also earn. So where you can invest your money?
1. Bank deposits. The most reliable option, which meant that not the greatest returns. Of course, you can be sure that your money will not be lost, but the income is small. This embodiment is advantageous, if your savings are large enough and so to percentages were quite noticeable for you. There are even some people who are completely live off the interest, but not necessarily banking.
You can also invest a portion of their funds in the bank, when the other is already invested in riskier assets. This will allow you not only earn interest, but also to protect themselves, if your burn through risky investments. Well, if you can not find a more appropriate way for you to invest, it would be better to store them on deposit in the bank, so you will at least hedge against inflation.
2. Bonds. Bond – is a security for the acquisition of which you pay a certain amount. Each bond has a duration and percentage of income, like a bank deposit. At the end of the term of the bonds you to pay the cost of bonds + percent. Typically, the higher the percentage of bond than the ordinary bank deposits, but at the same time the risk may also be higher. Of course, some bonds of Gazprom will be more reliable than the Company “Holy-stick”, but then the percentage of income will be lower. Each investor himself determines the balance between profitability / risk. The downside is the inability to bond prematurely withdraw money, as is often the case with a bank account, but on the other hand, the bonds can be secured by mortgage, and sell on the exchange.
3. Investments in securities. Under securities understand the various stocks finances, bonds, futures, etc. Most often invest in stocks, because at a certain skill and luck, you can put together a huge fortunes. An example of this can be a Warren Buffett, whose fortune is currently estimated at more than $ 50 billion.
The very process of investing is this: you choose a stock that you think will increase in value, then you turn to the stockbroker, which enter into a contract for the purchase of shares in a certain amount. Yourself you can not buy shares on the stock exchange, as it requires a special license, so you have to resort to the services of an intermediary – a broker. Following the acquisition of shares, you are biding for a while until the stock price does not rise, or fall well – it depends on many factors you must take into account in advance. When the price will suit you, then you are applying again with a request to the broker to sell your shares at a certain price. If the share price rises (and it can vary by 2-100% per day or more), you can earn good money, but could just as well be the opposite. As you can see from the growing risk of investment is increasing and the size of the possible income.
4.Overinflated management. Independently invest in securities, precious metals, real estate, etc. the average person, even if the entrepreneur is not easy. After all, this requires some knowledge of the market in which the investments are carried out. Not to mention the ability to identify and anticipate possible developments, but it needs very well understand the economic processes taking place in this market. Therefore, the solution could be to transfer their savings to the person who has long been engaged in this field – the trustee. It will invest your money based on their experience, and you will receive the income from these investments, managing the same will get a percentage of that income. But you have to understand that you fully assume all risks, if the control is not enough competent, since it does not take any responsibility for your money. But income can be daunting, there are many cases where investors various funds became millionaires, but it lacks and negative stories.
Here are the most common ways to invest money at this time. Of course, the best investment of money – it’s your business, but do not put all your eggs in one basket, so would not hurt to have some savings invested in one or another commercial tool, but rather several.