The best way to grow your money is by learning how to invest. It’s as simple as that.
When you become an investor, you will use your money to acquire things that offer the best profitable returns through one or more of the following investment options:
- Stock Market
- Investment Bonds
- Savings Account
- Physical Commodities
- Real Estate
- Managed Funds
The stock market works like an auction where investors buy and sell shares of stocks. These Stocks are a small piece of ownership in a public corporation. Buyers try to get the lowest price so that they can sell it for a profit later. Investors who trade stocks do extensive research, often devoting hours a day to following the market. Investors most commonly buy and trade stock through brokers. You can set up an account by depositing cash or stocks in a brokerage account. Firms like Etoro, Plus500, Avatrade offer brokerage accounts that can be managed online or with a broker in person. Most companies will pay dividends quarterly at the end of every business quarter, the company will usually send a cheque.
A bond is simply a loan taken out by a company. Instead of going to a bank, the company gets the money from investors who buy its bonds. When you purchase a bond, you are essentially loaning money to an entity, typically a corporation or government, to fund their projects or activities. In exchange for your loan the bond issuer will pay you regular interest until the end of the loan period, after which you will receive your initial loan back, ending the loan. The company pays the interest at predetermined intervals—usually annually or semi-annually and will return the principal on the maturity date.
A savings account is a basic type of bank account that allows you to deposit money, keep it safe, and withdraw funds, all while earning interest. Savings accounts offered by most banks, credit unions, and other financial institutions will pay interest monthly on your deposits.
There are four categories of physical commodities they are metals such as copper, gold, and silver. Agricultural such as corn, cotton, wheat, coffee, sugar and soybeans. Energy such as oil and gas and Livestock and Meat. Basic economic principles of supply and demand typically drive the commodities markets: lower supply drives up demand, which equals higher prices, and vice versa.
Real estate also includes producing, buying and selling real estate. Real estate includes both residential, commercial, and industrial buildings. There are three broad forms of property: private property, public property, and collective property. There are many ways to turn a profit with real estate. With real estate you can make money in many ways including Residential Rental income, Commercial Leasing Income, Home Renovation flips, Vacation rentals,
A cryptocurrency is a digital or virtual currency that is secured by cryptography. Many cryptocurrencies are decentralised networks based on blockchain technology, which is a distributed ledger enforced by a group of different networks of computers. Cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions. Some cryptocurrencies include Bitcoin, Ethereum, XRP, Bitcoin Cash. See link below for Top 100 Crypto coins and their current market values.
Managed Funds A managed fund involves the pooling of money from different investors into one fund that is invested and controlled by a professional investment manager. An investment manager will then buy and sell shares or other assets on your behalf. You are usually paid income or ‘distributions’ periodically. The value of your investment will rise or fall with the value of the underlying assets. Managed funds can be investments in stocks, bonds, cash or a combination of these assets.