If you have done everything as the experts advise, saving at least 10% of your salary every month, after a few years you are wondering where to invest money.
Yes, that money that you have been saving for a long time now is the time to invest it, but where? How to make that investment? These are questions that you have not yet been able to answer but you are about to discover below.
Tips on where to invest money
When it comes to knowing where to invest money and you are looking for an investment without risks, first of all you must understand that when you talk about investments, the risk, even if it is minimal, will always be present, therefore instead of weighing in investing without risks you should think about an investment with minimal risks, especially if you are a beginner in investments In this sense, below you will have several tips:
Investing in the stock
Investing in the stock market, investing in the stock market is where you will find the greatest movement of money. However, as in the stock market there are different markets to invest, the best if you are a beginner are binary options.
Well, investing in binary options your decision will be based simply on the rise or fall of an asset and how long it remains in that position.
You don’t even need too much investment, you can start with $ 10 with a broker, because in addition to being a simple investment method with a minimum start-up capital, you get short-term profits, without neglecting that there is the option that you practice before make a real investment.
- Mutual funds is a good investment option for you if you do not have any knowledge about the financial system because other experts will contribute their own knowledge for you, but you will have to pay a commission for their work.
- The mutual fund system works in this way: a group of investors make the deposit of their money and it is a management company who is in charge of investing the money to obtain profits.
- It is an option in which you do not need to invest a large amount of money, it is a safe type of investment because investors who are of course professionals in this matter are supervised by government entities.
- However, professionals are people who as such can make mistakes in their decision and therefore you can lose your money.
- The shares are securities of companies that issue the shares and when you become the owner of the shares, you begin to have rights, that is, you receive dividends when the issuing company makes the decision to distribute those dividends.
- The benefit is that by investing in stocks you buy securities that you can then sell for a higher price or you can receive dividends from those stocks without selling them.
- They are a highly liquid type of investment because they sell quickly and are profitable in the long run.
- However, with a volatile market and factors of various kinds that influence its value, it becomes a high risk investment.
- Also, although it is not necessary that you have a high capital, you will have to pay a commission because if you want to do the operation on your own you need knowledge about it.
- If you invest in bonds, you will be investing in government or corporate debt securities. You will have the right to receive the predetermined interest payment and you will receive them for the duration of those bonds.
- In other words, it is a type of investment that is based on the collection of interest with periodic payments.
- It is a good option for you if you do not have financial knowledge and they are also high performance although not as high as the purchase of shares.
How do you know what to invest money in?
It is also important that you know in which to invest money and what to do before investing, because in fact it is the first thing you should do:
- You must know what your possibilities of investing are, how much money you have available, because the more you invest, the more money you can lose.
- If you want to obtain greater benefits, it is likely that you think about investing a large sum of money, but you would be risking too much, invest little and diversify your capital, perhaps you will earn less dog, the loss will also be less if it happened.
- Get all the information you need about finances, know all the investment possibilities, their risks and profitability.
- Only invest the money that you have left over, if you have debts, use those savings to pay off those debts before allocating it to invest, that is, you will only invest that money that you know you will not need for personal reasons.
- For example, nowadays investors are aiming to invest in start-ups, they are small companies that start with low capital. Although you will have risks because you do not know how the business will work, it is a good option because its founders need capitalist investors.
- Crowdlending is similar to crowdfunding but it is a type of investment in which you will contribute money together with other people who also contribute their money to a business or a project that has not yet seen the light, that is, you will be lending your money and you will obtain profits from long term.
Where to invest money to make a profit
If you already have well established the way to invest your money and when to do it, where to invest money to make a profit is another question to solve:
- In addition to the above options, the direct treasury that allows the online sale of federal public securities for individuals.
That is to say that instead of lending money to the bank as in the investment in term, in this case the loan of your money will be made to the national government or federal government.
The government uses that money to do public works, etc. and in a predetermined time as an investor you will receive your capital with the corresponding interest.
- Bills of exchange are another investment option. You invest a sum of money that you will withdraw on a predetermined date and you will obtain a return depending on the value of the bills of exchange.
Where to invest money without risk
However, where to invest money without risk still a question mark, so pay attention:
- You can invest in the stock market by buying shares of the most recognized companies. You will buy shares at the minimum price and wait for their price to rise and then immediately sell them.
- Buying a property is also a good option. You can buy a property and speculate, for example if it is in high demand you will resell that property at a higher price, you can even reform it and then sell it or use it to live and rent one of its rooms.
What to invest 1000 euros in
If you have a minimum amount of savings and you think in which to invest 1000 euros You can do it even if you don’t have too much investment margin:
- Without special requirements, paid accounts It is an option, it offers you an interest calculated on that capital that you deposit.
- The fixed deposit Although it is a conservative investment, it is very common and has the advantage that it is totally a safe investment.
- The investment in gold It is a long-term investment possibility because you will have to wait until the price of the metal rises.