Sure, you have a job that pays constant money; but it doesn’t take a mathematician to know that it’ll take a lifetime of savings until your steady paycheck can add up to a fortune.
Investments are smart. You don’t have to work so hard, eight hours a day to reach financial freedom. Money comes to you passively – you can swim with penguins while your investments add bucks to your account. Here are the investment kinds you may want to know:
Bonds. You lend your money to a company or government.
- How does money grow? They pay you back with interests.
Stocks. When you invest on stocks, you buy a part of a business. This means you own a percentage of the business.
- How does money grow? You are entitled to receive profit of the business proportional to the amount of stocks you own. However, the return and risk are high.
Mutual Funds. A professional manager invests your money in a collection of bonds and stocks.
- How does money grow? Same as bonds and stocks. It is diversified and it doesn’t demand your time.
Real Estate. You buy a land property.
- How does money grow? Since value of house and land is increasing over time, you can sell it high.
Certificates of Deposits. You deposit money to the bank within the time frame, while during the time you cannot spend that money.
- How does money grow? You earn with interests.
Forex Trading. You buy or sell a foreign currency.
- How does money grow? You can earn or lose money through the movement of exchange rates. For example, you exchange US dollar for UK Pound. If UK Pound increases in value, you earn. If it decreases, you lose some money.
Business. You fund a starting business or you found your own business.
- How does money grow? You earn through profit of the business, or you can sell your business for up to millions.
All of these investments are simplified. I encourage everybody to sign up for at least one, but be sure to study it well. “Big risks, big rewards” is a good statement, but I prefer “controlled risks, big rewards”.
What kind of investment are you interested in?