- Personal Finance
How to invest your money properly? Multiply it!
‘Money is like manure. You have to spread it around or it smells’.-J. Paul Getty
Money is empowerment as it gives an immense maneuvering space for you to do what you want. Without money you become a slave to other people’s whims and have to live a life of forced mediocrity. How is it some people are richer than others? What is the special quality they possess that makes them financially affluent? The answer is quiet simple. The people who are successful plan their life and work in such a way that they climb the ladder of success much faster. They also take care that they remain financially sound by making proper and lucrative investments.
Your financial success depends on your sincerity in your work and your efficiency to keep up with the technique of improving in any field you might work. Do not settle for anything less than the top place. Is it enough if you earn a lot? Your earnings will be come to naught if you do not make proper investment. You should be calm and foreseeing in any investment you make. Do not make rash decisions and regret later. Be levelheaded and invest your hard earned money in safe as well as growing fields.
The most common way of investing your money is fixed deposits where you can get your money back with interest after a certain period of time. It is very safe, provided you invest it in banks, or highly trustworthy financial institutions. Their interest rates are not that high, but your blood pressure will not shoot up thinking about the safety of your money.
The main drawback of fixed deposits is the depreciating value of your money as the cost of standard of living and other things would have increased leaps and bounds by the time your money matures. So fixed deposits are a very safe way of investing your money, but the main minus is that the method is rather a static investment.
You can invest your money in stocks also, but this involves a high amount of risks. The stock markets are highly fluctuating and you might lose your money if you do not know the trend of the market. You should be an expert of stock market moods if you want to be successful in it. Do not invest all your savings as stocks or mutual funds. But it would be sad to miss out earning in this highly volatile field. You should buy stocks when the market is low and sell when there is an upswing. If you use your brain and your common sense you can earn quiet a lot of money in stock market. ‘The key to making money in stocks is not to get scared out of them’-Peter lynch’
Real estate is a gold mine which has made many millionaires. I know of many people who had bought lands in far off places which was said to be lackluster in market value at the time of purchase, skyrocket to their utmost high because of the ever changing social scenario. The only thing to very careful is about the encumbrance and also about the true ownership of the land or property.
The land value will not depreciate and even it does, will soon retain or go past its market value. You should invest your savings in buying a property. If you burrow money to buy a vacant land as a potential future investment, you will be paying interest for a dead investment. I would rate real estate as a top ranker as far as investment is concerned.
You can buy farms with high yielding trees which is another form of earnings. You can invest money in buying buildings which give you rent in return. There are many more options available for you to choose from. Think carefully and invest judiciously. Diversify your investments, so that your income comes from different sources.
Start small, gathering momentum as your income grows. Take the first step firmly and you will find your journey to your monetary success depends on your hard toil, work efficiency and your intelligence.
© 2011 mathira