Published on March 16th, 2019
Do you have some savings and would you like to take advantage of them? If you want to know where to invest money, you have come to the right place! In this article I am going to talk about the best options to invest your money and start generating extra income.
The 10 Best Options Where To Invest Money
Below you will find a list that I have prepared with the best options where to invest money.
1. Invest In Stocks
The investment in shares consists of buying these securities and subsequently selling them at a higher price, and / or receiving dividends. Normally stocks are sold quickly, which makes this an investment with a high degree of liquidity. It also has a high potential for profitability in the medium or long term.
2. Invest In Bonds
Bonds are debt securities that some companies, governments and other entities issue in order to finance themselves. They give the owner the right to receive periodic interest payments, which are fixed in advance and are constant during the life of the bonds.
This investment consists of buying these securities in order to obtain an income, with periodic payments of interest. The bonds offer a potential for high profitability, but less than the shares. Also, here you do not need technical knowledge to invest.
3. Invest Money In Binary Options
Personally I do not recommend investing money in binary options without knowledge. Although it is increasingly popular and seems very simple, you can lose your savings, and this happens many times.
This investment mechanism consists in selecting an asset or currency and betting or predicting if its price will go up or down. Similar to a bidding system and where speed is important in management.
4. Investment Funds
Mutual funds consist of pooling the funds of investors to invest them in different assets, which can be stocks, or bonds. The management of this investment is carried out by a professional.
There are different investment funds that we can access, according to our profile as investors and the profitability we want to obtain.
5. Time Deposits
This option is the most common where to invest money, among those people who seek security and simplicity.
In the case of needing the capital, you could withdraw it but after paying a penalty that does not affect the principal.
Without a doubt it is one of the safest investment options, because you know the interest you are going to receive and the term of this recovery. In addition you do not need great knowledge about finances, because this is managed by the financial institution.
6. Micro Credits
Micro credits were born as an alternative to traditional banks in developing countries with social purposes.
They are small loans that are granted to groups with limited resources and who have difficulties in obtaining a loan.
Initially they were intended for women with few resources and who wanted to start a project or cover their needs. But currently, micro credits are also granted to cover urgent needs that can be covered but not at that time.
Crowdfunding is a way of collective financing, which is normally done through online platforms, that is, without financial intermediation, and is used to finance a specific project. The objective is to put project promoters in contact with potential investors or fund providers who hope to obtain a return.
8. Real Estate Or Real Estate
This investment of money consists of buying a property, it can be a house, department, commercial premises or land, to later sell it at a higher price, and / or rent it and obtain an income.
Although it may seem a simple operation, it is necessary to have good capital for this investment and also good knowledge of the market to be able to correctly choose the property that is going to be purchased.
On the other hand, it is a safe investment with a low and profitable risk, it is difficult for the real estate to lose value over time, and in the case that they lose it they increase again.
9. Angel Investor
Investing as an angel investor is to find ideas that are going to be launched on the market or recently created companies, to invest your money in them with a shareholding, and thus help them grow. The idea is to sell these shares later to obtain benefits.
It is usually a long-term investment. The risk here is very high, because you cannot predict with accuracy the success that you will achieve or not, a company or idea. Most companies go bankrupt in the first 3 years.
10. Invest Money In A Business
This consists of starting a business from scratch, or buying a business that is running or financing the business of a third party. The purpose is to obtain benefits from a percentage of the shares or, if in the future you sell it at a price higher than the purchase price.
Now days there are numerous investment companies and options are available. But every investment is not as fruitful as it is presented by their representative. You need to unearth every minute details in order to gauge their potentia returns. So it is really important that you first review all the aspects befor enering in any type of investment plans.
Stacy Thomas is a freelance writer who has been writing for various blogs for the last few years. In this post, he has written about the benefits of Social Media Marketing, Business, Finance as well as the features related to the same.