Best Way To Invest Money

Best Way To Invest Money

How to choose the right investment can be a decidedly complicated operation for those who, like you. Enter the world of investments after having patiently and foresighted a portion of the fruits of the sweat of their work. In recent years, to improve their own perspectives and those of loved ones. In this article, we will give you a complete guide about the best way to invest money.

I have set myself today to give you a rundown of the various options to help you understand. The best way to invest money in some savings and give you an overview of the various possibilities you have available. I am sure that many of these investment methods you may already know. Which you have probably never thought of: what I personally like to call “The investment perfect (100% per year) ” (I wrote a post dedicated to this type of investment on THIS page ).

So to answer the question, “ Where should you invest your savings? “A twofold reasoning is necessary: ​​objective assessments (the market, demand, etc.) on the one hand and subjective (risk appetite, investment ideas, personal considerations) on the other.

What it means to invest

Let’s start from the beginning. Literally, the definition of investment could be summarized as dedicating time, money, or availability to a person, cause, or company to make it improve, grow, and prosper. In our case, we will focus on the monetary field, therefore on finding out where to invest the money now. At this precise historical moment, based on your propensity and market conditions. For this reason, there is no right or wrong investment, regardless, but there are some premises. That must always be kept in mind when you have to choose between the various investments.

How much money do you need to invest

Let’s dispel a myth; you don’t need to be a billionaire to invest. The rules for choosing where to invest a lot of money or where to invest with little money are more or less the same. The volumes change. Some investment opportunities may not always be available but, in principle, know where and how to invest the money. It is fundamental, regardless of how many you can invest because somewhere you have to start well.

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Where it is convenient to invest money to earn

Choosing an investment can be somewhat complicated, given that there are many investment proposals; so many that you could spend whole days wondering, “where is it better to invest the money?” Didactically speaking, as long as you are not interested in dealing with the topic of highly lucrative investments.

  • investments in real estate ( investments “on the brick,” i.e., on real estate, houses, warehouses, etc. ..)
  • investments in raw materials (on gold, oil, wheat, etc …)
  • So investments in financial instruments (from BOTs and BTPs to mutual funds and ETFs, up to crypto-currencies, also called “digital gold”)
  • business investments (car washes, laundries, websites, apps, etc.)

It is important for an investor like you to familiarize yourself and learn about these 4 categories of investments to choose from as each of them hides risks and opportunities that tend to be counterintuitive: not knowing them means choosing to take risks that are too high compared to your intention or giving up opportunities that you would rather be able to seize.

Taking into account that, in these 4 investment categories. It is possible to think both in terms of trading and investing ( the difference between trading and investing is covered in this linked article, which I suggest you read) and first of all. We will detail some investments of the moment, those that are the most popular:

Investments in the brick: Best Way To Invest Money

Investing in real estate has the positive element of being able to create passive income in a conceptually straightforward way potentially: I buy an apartment and rent it.

Thirty years ago, this would probably have been the best right answer to the question “where to invest the money to earn?” Essentially, the investment consists of buying properties to resell them at a higher price (capital gain) or to rent them (passive income).

Pros and cons of real estate investments:

PRO

  • In an expanding market, it is one of the best ways to invest money safely.
  • If you have a few manual skills, you could add value to the purchased property. And economically before reselling it at a higher price.
  • If you do not have any qualms, which honestly is not in line with this site’s aspirations, you could find excellent opportunities at bankruptcy auctions.
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CONS

  • With a market stagnating, the risk of having to keep the property stationary, without the possibility of reselling it or renting it for a long time, is concrete.
  • The ever-higher taxation on real estate makes any final gain at risk.
  • Renting a property presents a possible risk of insolvency.

Maybe once this was the best investment if your question was “ where to invest the money to live off,” but there are probably better or at least simpler and safer options in the current state of the economy.

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Investments in gold and commodities

Let’s start by saying that when we talk about investing in raw materials. We mean investing in physical materials, gold, silver, or even diamonds and land. These are investments that, in principle, are, according to industry experts, simple enough to predict. Because of being able to ” ride long trends, “as traders say: an accurate and timely fundamental analysis of the market in which you intend to invest can be a good starting point.  Among the most typical investments in this category, one above all, there is the classic investment in gold. Let’s detail it with some considerations dedicated to investing in gold (valid in part also for investments in diamonds ). Gold is the ultimate haven asset.

Pros and cons of investing in gold:

PRO

  • It is suitable for investing even small amounts.
  • So it is available in various forms; it is unnecessary to buy an ingot or coins and then worry about where to hide them: investing in financial gold is very fashionable lately …
  • Easy to buy; if your only question is “ where to invest the money quickly,” gold is the answer

AGAINST

  • The costs and fees for investing and divesting can be important.
  • It is tough to have a forecast of earnings given the instability that characterizes the markets today.
  • If you opt for physical gold, you will need to find a safe place to store it, away from the ill-intentioned.

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Investments in financial instruments

Investing financial instruments, on the other hand, means investing in liquidity, in a “simple” movement of money (a pro of the latter is that it creates investments that tend to be easy to manage, both incoming and outgoing; a con is that, in most cases, not as profitable as it seems). Still, there are many others (for example, mutual funds and ETFs well described in my post. That I will link to you further down and more …)

Specifically, investments in financial markets have their object “transferable” securities or even the exchange of currencies itself (in that case, we speak of FOREX). One of the secrets to learning how to invest in financial instruments at best and without risk is the so-called “trading demo.” This expression indicates the possibility of exercising, making real online investment operations. But with virtual money, therefore without the risk of actual capital (or potential gains). In this way, it will be possible to better learn the mechanism before facing real investments. To exercise, you can use several free platforms, which offer the “demo” version.

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Investments in the stock market: Best Way To Invest Money

To date, it is possible to invest in the financial markets and the stock exchange through various channels, including online. Some investors carry out this activity, considering it is their daily profession, while others view long-term investments. In any case, there are several examples of people who have managed to become rich by investing in the stock market. However, it is good to inquire in great detail about it before taking risks. In fact, there are also cases of people who have lost all their possessions due to some mistakes made on the stock exchange.

Pros and cons of investing in the stock market:

PRO

  • it can also be done online independently, saving many commissions compared to investments made through a bank or agency
  • the earnings are potentially very high

CONS

  • you need to know what you do: study and dedication to invest independently in financial instruments would be a must
  • not just big gains: the possibility of huge capital losses is around the corner
  • you must constantly keep up to date on trends
  • risk of making wrong decisions and their consequences

Again, as I said above, this type of investment cannot compete neither in simplicity nor as much chin as returns, with what I personally like to call “The perfect investment (100% per year) ” (read the post dedicated to on THIS page ).

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Forex investments

We continue our roundup on the various types of investments with Forex (short for FOReign EXchange market): that is, the purely speculative trading and consequent exchange of one currency with another. Ex: do I think the euro will appreciate tomorrow against the dollar? I buy euros and sell dollars. It is a trading system that has been spreading more and more recently, especially because, currently. It is possible to make this type of investment in “leverage” (a technical tool we already have explained to WHO ).

Pros and cons of Forex investing:

PRO

  • High volatility, possibility to invest 5 days a week and benefit from continuous trading opportunities and signals, often provided by third parties
  • low capital needed to start (even € 2,000 can be enough to gain experience)

CONS

  • requires a lot of experience, which tends to be achieved after years of study and a lot of lost pennies (I myself have lost a lot with Forex. But I await the right moment to resume my studies because, in fact, I am a trading enthusiast)
  • It is really very easy to get carried away and turn a serious investment business into something much more like betting

Again, as I said above, this type of investment cannot compete neither in simplicity nor as much chin as returns, with what I personally like to call “The perfect investment (100% per year) ” (read the post dedicated to on THIS page ).

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Investments in mutual funds and ETFs

You often hear about mutual funds, especially if you ask the bank for advice, which generally can’t wait to give you one. Instead, regarding the acronym “ETF,” unknown to most, it stands for “Exchange Traded Funds,” particularly passively managed investment funds. Which we have extensively discussed in the article dedicated to the difference between mutual funds and ETFs. In both cases, putting one’s savings together with other investors’ other subjects is a question.

Pros and cons of investing in ETFs and mutual funds

PRO

  • potentially high and constant returns over time

CONS

  • Medium-high commissions (but if you are interested in this type of investment. I highly recommend reading my article, already linked above, to find out how to reduce them to the bone)
  • Necessarily require special awareness on the part of the investor. Unless you wish to put yourself totally in the hands of strangers

Again, as I said above, this type of investment cannot compete neither in simplicity nor as much chin as returns, with what I personally like to call “The perfect investment (100% per year) ” (read the post dedicated to on THIS page ).

Investments in Deposit Accounts

To benefit from a deposit account and a high return, you should reduce its “operation.” There are various types: for example, they can be “restricted,” i.e., liquidity must never be subtracted for the entire period of time they are restricted, or “free accounts,” which do not have this limit.

Pros and cons of investing in savings accounts:

PRO

  • the security of not being able to lose the capital invested

CONS

  • meager returns when compared to other types of investments

If they can ever really give you a positive return, even with a large starting capital, with deposit accounts. You would have to wait years (even 20 or 30) before you can accrue satisfactory compound interest.

Again, as I said above, this type of investment cannot compete either in simplicity or as much chin as returns. With what I personally like to call “The perfect investment (100% per year) ” (read the post dedicated to on THIS page ).

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Investments in policies: Best Way To Invest Money

A particular type of investment is that of “life policies.” That is insurance that corresponds to a certain premium, which can cause a profit. If the holder of that policy dies, the beneficiaries of the insurance get a certain return. The insurance contract holder can collect policy interest upon the expiry of the policy.

Pros and cons of investing in insurance policies

PRO

  • it is certainly valid for leaving an annuity to your children or family in case something should happen to you

CONS

  • if, as I wish you, you will enjoy excellent health within 100 years. At the expiry of the policy, you will only see the premiums paid, almost nothing more …

Again, as I said above, this type of investment cannot compete neither in simplicity nor as much chin as returns, with what I personally like to call “The perfect investment (100% per year) ” (read the post dedicated to on THIS page ).

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