It is no secret that many institutions and individuals apply for spare funds from a private investor. These may be, financial institutions, stores, banks, and even, alas, scammers. This means that you have to consider investment options carefully and understand what peculiarities lie behind this process.
1. Investments in Real Estate
There are several options:
- buy an apartment and rent it out;
- buy an apartment at the construction stage and sell it at a higher price;
- invest in renovating old housing and sell it at a higher price;
- rent and sell real estate as an office.
This method has the right to exist, but it has several disadvantages:
- a high entry threshold;
- agency risks;
- low liquidity (it takes time to sell an apartment profitably);
- risks of fraud on the part of the tenant builder.
2. Artistic Values
It implies investments in art treasures and collectables:
- art objects,
- exclusive jewellery,
- and even wine.
This is one of the most luxurious and romantic ways to raise capital. There are two problems: the first is that it is very expensive to acquire such things, the second — it is an extremely illiquid investment, and it is hard to find a buyer for the collection.
3. Travel Investment
This is a youth way of investing, which has given rise to more than one successful case. You can travel, for instance, through India, develop language skills, communicate, create your blog and make money on it. By the way, the blog itself is also a newfangled way of investing with a small threshold of entry. But here you need talent, luck, and the very big idea, so as not to get lost in terabytes of information.
4. Investing in Yourself
That is, in your personal development, education, health, and appearance. It is one of the safest investment options. It is hard to argue that the quality and perception of life, as well as your earnings, will change dramatically if you become the best version of yourself.
Likewise, the founder of the famous auto concern — Henry Ford — spent his first serious money on an expensive suit to seem presentable in the eyes of partners and employers. The path of such investment is buying and reading books, getting additional education, working out in the gym, changing eating habits, etc. There is only one risk — your laziness and inability to use your potential.
5. Currency Operations and Forex Trading
Someone just buys and sells currency in a particular bank, trying to catch the exchange rate differences; others convert all savings into dollars and keep them at home or on a bank deposit with a tiny percentage. Indeed, the currency still remains a fairly reliable, liquid and profitable investing option. But working with commercial banks, you pay their risks and get not the exchange rate of the dollar or euro, but imposed by the bank. Therefore, if you decide to invest in foreign currency, it is better to resort to a reliable broker, choose a trusted platform like MetaTrader 5 and read Forextime blog to benefit from exchange rate differences, make transactions at the right time and not overpay to the bank.
6. Stock Market
It is a popular investment option that everyone is aware of. But most inspiring investors do not understand how to enter the stock market and what the benefits are. Everything is simple: you should reach a broker for help. This is an intermediary who, on your behalf and at your expense, will operate with securities or exchange commodities purchased by you, fix income, and pay taxes. For this, the intermediary will receive a small interest.
7. Investment in Networking
It is a newfangled way of investing. You buy tickets for cool events, lectures, exhibitions, conferences, meet the necessary and useful people, and then try to use your connections to your advantage. For example, find a high-paying job in the capital regions.
A Word of Caution
Several important points are crucial to learn before you decide to invest your savings in anything.
● Do not invest your last cash
For example, a huge part of the salary or the annual bonus. You can only invest free money (savings) — those that you will not need for life support very shortly.
● Invest only in tools you understand
You must have an accurate idea of how your money will work, due to what and in what time frame income is generated, and what risks you can incur.
● Work with professionals, especially at the beginning
If you use the services of a broker, it will save you from unpleasant and silly mistakes. The broker will teach you how to work with various tools and give you access to exclusive analytics, without which smart investing is impossible. The main rule applies here: a reliable, competent intermediary guarantees transparency and controllability of all operations.