Imagine you just received your salary or your pocket money. What’s next? You either end up spending all of it or you look for the best investments to proliferate it. It’s not uncommon. Only a handful of people spend their money wisely or invest it potentially. Managing money and keeping accounts is indeed tough since one needs to be attentive and alert while spending even a single penny. This either makes you anxious or leads you into critical thinking trances during miscellaneous expenditures.
Why Invest?
The money world is vast. Once you step into it, you either embark on a rollercoaster journey or a successful one. When we hear the word ‘investment’, we either imagine Di Caprio walking down Wolf Street with a lavish grey suit and billions of dollars in a suitcase or a huge bag full of cash. Just the mention of the word freaks us out. This is because the idea of investment has been generalized and confined to Stock Markets, people walking around rambling big words like ‘Sensex’, ‘Arbitrage’, ‘Assets and Liables’, etc.
Currently, we have numerous opportunities and resources other than Stocks where we can safely invest our money. The money world is expanding over time and it is the best time for us to invest and make the best use of it, irrespective of our age. Investments are important as it helps to build your wealth. Another vital point is that you need to invest wisely to see your investment grow. Investing allows you to put your money in vehicles that have the potential to earn strong rates of return.
Perks of Investing
Investments are a two-way road. One has to understand that while investing there is a certain amount of risk involved in it. Therefore, we suggest that you should invest wisely before jumping on it. If you invest wisely, you’ll get higher returns and higher amounts. Here are some perks of investing money:• Higher Returns
– Extensive savings for future
– Lower chances of the financial crisis
– Attaining financial goals
– Business expansion
Where to Invest?
The question of where to invest still haunts several new and old investors. Comparatively, today, there are numerous opportunities where you can safely invest your money and yield higher returns.
Here are the 10 best ways to invest money:
1. Gold
Countries like India prefer investing in Gold as it has several benefits. Gold is the ultimate option of safe investment with higher returns. The Gold market is never stagnant or static, it keeps fluctuating tremendously. But that is not a heavy matter of concern as gold has enormous economic and financial significance in the market. According to a few studies, gold has the potential to hold its value for a long time.
2. Mutual Funds
Yes, mutual funds are subject to market risk but mutual funds are volatile investment avenues that come with the convenience of lower initial investments. You can start with just 500 rupees with the expectations of higher returns. Mutual Funds are collective investments that are managed by a mutual fund manager. The fund manager pools people’s money invests them in stocks and bonds of large enterprises/companies and creates a return. These managers charge a commission which is a percentage-based fee.
3. Cryptocurrency
With Musk’s tweets taking Dogecoin to the Moon (quite literally) while leading to its depreciation, Cryptocurrency is the latest trend in the money marketing world. It is a kind of digital electronic-only currency that acts as a medium of exchange. It became popular in the last decade, with Bitcoin becoming the leading digital currency. Individuals and large organizations are gigantically investing in Cryptocurrency in the present times, expecting higher returns.
4. Credit Card Rewards
Credit Cards that provide cash-back rewards is one of the fun and best ways of investing money. You can earn a lot of rewards just by doing loads of shopping or other purchases of essentials by paying off with credit cards rather than debit cards or cash. But you need to be cautious of your limitations of expenditure as you need to pay off your credit card bills at the end of the month. Credit Card Rewards are the most fun and safe way of investment if you can pay off your bills religiously at the end of every month.
5. Real Estate
Real Estate Investments are one of the wisest and strategic methods of investment. These investments allow you to invest in large-scale properties like malls or apartments. There are a lot of ways to invest in real estate, like home mortgages, building a property empire that spans the country. You can either opt for immediate investment methods with a little amount of money like Real Estate Investment Trusts (REITs) or invest in your home or rental properties. You can also invest in real estate by flipping properties.
6. Fixed Deposits
Most of the banks offer a higher rate of interest on fixed deposits. Fixed deposits are one of the simplest and easiest ways of investing money. All you have to do is visit a bank, brief yourself regarding their FD policies, open an FD account and invest your money for a certain period of time. Few banks offer increased interest over time which yields higher returns during the time of maturity of your FD account. You can withdraw your money after the period of maturity.
7. Public Provident Funds (PPF)
PPF is one of the most trusted ways of investment. You receive interest rates annually with a minimum investment of Rs 500. The time duration for investment is 15 years, however, partial withdrawals are allowed of the corpus are various points.
8. Savings Accounts
Savings Accounts are one of the most familiar ways of investing your money. Investing your money for a savings account and letting it build up over a period of time with certain interests is the least risky way of investing money. On a second note, it can also be one of the worst ways of investment if you want returns on your money.
9. Stocks
Stocks are considered as the best way for long-term investors. Investing in stocks is an excellent way to grow wealth. For long-term investors, stocks are a good investment even during periods of market volatility (stock market downturn simply means that many stocks are on sale). Stocks are also considered one of the easiest ways for beginners to get started with investments.
10. Certificates of Deposits
Certificates of Deposits or CDs are similar to Fixed Deposits in terms of investment procedures and returns. Like an FD, a CD’s purpose is to denote in writing that you have deposited money in a bank for a fixed period. The bank will pay you interest on it based on the amount and duration of your deposit. In India, CDs can be issued for a minimum deposit of ₹1 lakh and in subsequent multiples of it. The major difference between an FD and a CD is that CDs are freely negotiable while FDs are not.
So, where to Invest?
With all these easy and simple investment options available in the market, one might get confused as to where exactly to invest for higher benefits. Every investment has its own set of pros and cons. If you feel confused and skeptical about investing on your own, you can always consult a financial advisor who will help you with the best investments. One thing that you should always keep in mind while investing is to be alert and keep track of your money and transactions.
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