The investor’s goal is to recoup their initial investment and make a profit. Alternatively, you can generate an infusion of passive income to cover your regular expenses.
Do not assume that this information is solely relevant to “cool men” in suits from financial television networks. Investing can and should be a big part of our life. If you give the article a half-hour, you will convince yourself.
If you’re interested in personal finance and want to save money, you’ve come to the perfect place. After all, this is how financially successful individuals live:
- Try to spend less money than they make
- Pay off your obligations and loans
- Set some money away
To begin, all of these are critical. However, saving is not a goal in and of itself. Saving won’t get you very far for the following reasons:
According to the Trading Economics database, inflation is associated with the economic progress of 75% of the world’s countries. Money eventually depreciates under its influence.
“Everything has gone up in price, including furnishings and construction supplies!” It was required to make a buying decision right away! ” – you consider.
And you are entirely correct! It’s not going to get any better. Time is on your side when it comes to inflation. The longer money lies dormant, the fewer goods and services you will be able to purchase in the future. There’s also the issue of inflation. Other economic forces have the potential to devalue money further.
But don’t be concerned. The recipe for financially successful people includes a fourth ingredient: they invest.
Let money work for you
Return on investment might come to you in a variety of ways. The first and most obvious:
The gain in asset value: purchased shares for $25 apiece, sold for $60, and earned a profit of $35 per share—regular payments, such as interest on a deposit.
Stocks will be discussed later, but let’s concentrate on bank deposits for now.
According to the National Bank, the United States has more than 9.6 trillion tenges on deposits. Another ten trillion dollars are kept in the company’s banks. It’s safe to mention that most people are aware of this instrument.
On the other hand, a deposit is the most basic investing option. It is even considered a necessary investment condition known as ” compound interest.”
It is when you only get interested in your assets for the first month. The bank’s interest is then applied to the entire amount, resulting in a new reward that is higher. As a result, the longer the funds are in operation, the more income they generate – automatically.
Do you have a down payment? You’ve made it to the stage of being an investor!
That’s simply a deposit; it’s not the only or most profitable tool available. Foreign currency deposit rates are often too low to be considered profitable. Yes, at 2% per year, you won’t make much money. Furthermore, tenge deposits do not always cover the same inflation, and there is a possibility of the national currency depreciating. In recent years, we’ve seen devaluations on multiple occasions.
Where to invest
We can recall real investments to cover the complete range of our issues. These are some of them:
- Land plots are being purchased
- Addition of residential and commercial real estate for rent or selling
- Precious metals and gemstones as investments
- Looking for antiques and treasures
- Creating and growing a business, as well as purchasing ready-made franchises
- Copyrights, patents, and licenses may be purchased or registered
All these options have advantages and disadvantages. Many of the items on this list necessitate specialized knowledge, talents, and commercial savvy. It may also necessitate a significant amount of effort and time. No one warned about the dangers: a collector may be “cheated” or robbed, and business could “go bad.”
Financial investment is another and more beneficial sort of investment in many ways. It is when you purchase massive company securities on international stock exchanges.
The main types of securities and how they work:
Shares: You invest in a firm by purchasing a percentage of its stock. You profit from the increase in the value of your securities as the company grows and develops. In addition, about 4,100 corporations in the US stock market pay dividends to shareholders regularly.
Bonds: Bonds are financial instruments that enable you to lend money to a business. The corporation regularly compensates you with a percentage fee and is obligated to refund your investment after a set period. Bonds can also appreciate and sold profitably.
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