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Top 3 Ways to Invest Your Money: Earn Exceptional Returns

The objective of investing is to obtain a return on your capital within a specified period of time. The shorter the time frame, the higher the return and the higher your compounding result each year. Investors focus on getting as much compound as possible each year with as little risk as possible.

This risk factor defines the quality of an investment. A quality investment is, of course, an investment where you actually get your initial capital back, as well as a percentage margin on top of that capital. So the best ways to invest money are those in which the risk is very low or zero.

There is no zero risk investment, there is always some risk. Even the investment of putting your money in a bank involves at least some small element of risk. Most investors consider this to be the safest investment of all because a bank is a type of business that is actually backed and guaranteed by the government.

So a bank deposit is the best way to invest your money, if you have several million dollars. The single-digit return makes it impractical as a source of passive income for investors with less than at least a million dollars because the returns are too small to live. But for large capital accounts, it is still the safest place to park money.

The next safest investment is real estate because, unlike the stock market or mutual funds, your money leaves your hands but you receive something of tangible value in return. This is something very significant, because if you compare it to the stock market, you do not receive more than one receipt for an investment in stocks. This receipt is an acknowledgment of receipt, but it has no intrinsic value in itself. The actual paper document you receive is worthless.

What this means is that the risk is out of your control. You have passed the money on to someone else and the ability to control risk is completely absent. Control and risk are closely related, so when that control is given up, the risk factor increases significantly.

The final best way to invest money is a real estate variance, however it can be used even with small equity accounts. Real estate entry costs are high, you need a deposit, you have legal fees and other associated expenses. However, you can also invest in investment items that match your current starting capital level. For example, you could easily buy common goods at the wrong price and sell them at a profit. This type of transaction can happen as fast as a week and the return can be quite high. This ability to deliver an investment quickly has powerful ramifications for a portfolio. If you can buy something for $ 100 and sell it for $ 140, that’s a 40% profit margin, if you can do it in a week, you have a good investment model if you can maintain those levels of capitalization. $ 100 turns into a million dollars in just 28 such transactions.

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