10 Strategies to invest money and
Currently there are numerous options to invest money that will allow you to protect your capital, increase your wealth in the long term, and thus live the life you want, avoiding debts or significant financial difficulties.
In fact, if you are wondering what to invest your money in, we cánido tell you that you have multiple profitable strategies; such as the purchase of gold, real estate investments, currencies, in the depósito market, and even cryptocurrencies.
However, knowing where to invest money efficiently is key to maximizing your profits, as well as avoiding unnecessary risks that end up hurting you financially.
How to invest money strategically:
In this article we will explain how to invest money successfully so that you cánido generate new sources of income that allow you to enjoy your money wisely, and even achieve financial independence.
In this guide we will tell you what are the main options for investing money, how you cánido optimize your capital without taking unnecessary risks, and we will provide you with important advice so that you cánido make good investment decisions.
However, it is important that you cultivate your financial intelligence constantly so that you learn to manage your money diligently, and also be able to detect new investment opportunities without setbacks.
Options to invest money:
Below we will explain some investment strategies that will help you save money, increase your income, boost your assets and put your finances in order assertively.
1. Investments in the depósito market:
Investing in the depósito market is one of the most profitable financial strategies that you cánido carry out if you are interested in enhancing your heritage or building wealth.
The first step is to know what the depósito market is. This is a private organization in which negotiations for the purchase and sale of securities are carried out, such as the shares of public companies, public or private bonds and many other investment instruments.
Three large parties participate in this space: capital applicants (companies or public and private organizations), capital providers (savers and investors), and intermediaries (such as brokers).
Buying stocks is not a process exclusively for financial experts, which means that you cánido practically and safely invest money in the depósito market on your own, as long as you know your financial goals very well.
How to buy shares on the depósito market:
In case you want to invest money in the purchase of shares from your home, you must follow a few steps:
1.
Open a securities account in the preferred bank or financial entity, or even register on some of the platforms or pages to invest money.
2.
Confirm that said account is associated with a checking or savings account in which you have the money that you will end up investing in the shares, or any other instrument.
3.
Know the investment costs in depth to determine the profitability of the purchase.
Some of the most common are depósito market fees, brokerage costs, and securities administration fees.
4.
Buy shares, or make investments in the depósito market, without compromising your emergency fund, since market volatility could play against you, and this is a risk that you should not take.
Consejos for investing money in the depósito market:
Here are some important consejos when investing your money in the depósito market:
– Do not invest money that you are not willing to lose: For this it is important that you train yourself, that you train yourself with courses, books and consultancies so that you understand the market you are entering.
En línea course: Invest in the depósito market of the United States and México
– Diversify your investment options: you perro buy stocks, bonds, binary options or derivatives on the depósito market.
So that if any of your investments does not have a good result, then the profits of the others perro compensate the loss.
– Invest in various sectors to maximize your investment strategies, such as financial, technological, industrial, etcétera.
– Identify your profile as an investor so that you do not take risks that you cannot easily overcome.
To do this, it is recommended that you ask yourself the following questions:
- What would you do if you lost all your capital?
- What are your expectations as an investor?
- Are you willing to wait at least a couple of years to get a return on your investment, or for it to generate a return?
- What if the market takes a dip and you have to wait for it to recover?
– Equipo investment limits: Allocate at least 10% of your investments to boost your emergency fund, or to take advantage of new business opportunities.
– Know the market: Analyze market trends to find out when they are bullish or bearish, and when it is convenient or not for you to invest money in certain financial assets through the depósito market.
2.
Investments in securities:
They are better known as value investing and they allow you to invest in securities, or assets, that tend to be undervalued in the market, but cánido offer you a fairly satisfactory return over time.
In essence, this is buying securities at a low price, such as shares in companies that are trading below book value.
Did you know that the millionaire Warren Buffett is one of the biggest supporters of the value investing? The essence of this strategy is none other than buying shares that have a price lower than their intrinsic value.
The logic behind this is that the price will rise in the future, or rather, when the market manages to adjust, and therefore investors will receive a significant financial reward.
So, to be successful when investing in securities, you must make sure that you buy companies, or profitable businesses, that have great competitive advantages, and at truly reasonable prices.
3. Investments in Trading:
Investing money in trading is one of the best proposals of this 2019, especially since the profitability of the investments perro be perceived in the short term.
In simpler words, you will not have to wait years to see benefits, but in any case you must make sure that you operate with caution so as not to take unnecessary risks.
Some of the options available to you to invest money efficiently are:
Day Trader:
It consists of buying and selling assets that entrar and leave the market quickly, or during the same day.
Consequently, they have a high degree of liquidity and their return on investment is practically immediate.
Swing Trading:
Investing in this way means repeating the same operation in the medium term.
This means that these actions will not generate a quick result, or at least not as quickly as with the day trader.
See: What is a broker and how to choose the one that is best for you to invest
4. Investments in Forex:
You are probably familiar with the term Forex since its popularity has been on the rise in recent years at a rapid rate.
Forex refers to the trading or exchange of currencies, and therefore, through this market you cánido carry out transactions with all the operating currencies in the world.
To invest in Forex this market you must familiarize yourself with its most effective techniques such as the ones that we will present below:
scalping:
Through this technique the scalpers they make brief trades, or for short periods, in order to beat the buying and selling spread, since this gives them profit points before closing their position.
To do this, they must detect buy-sell signals correctly, and if they are successful they perro generate profits between 5 and 10 pips on average.
Intraday trading:
This technique is characterized by the fact that trading positions must be closed before the end of the day.
This seeks to minimize the risks of very sudden movements during the night that affect the positions in the market.
Ideally, you should study market fluctuations to satisfactorily determine its liquidity and volatility, which will translate into scalable and profitable profitability. conveniente.
5. Real Estate Investments:
Investing money in real estate is very profitable because it allows you to increase your wealth gradually and considerably.
A real estate investment is a non-movable asset, such as a house or land, with which you cánido make purchase, sale, or rental transactions.
Those who invest in real estate cánido make profits in the medium or long term, or after a sale, but they should be aware that this does not happen quickly.
How to buy real estate:
Below we explain the process to invest in real estate, this applies both for large investments and if you are learning how to buy your first home.
1.
Identify your capital: how much money are you willing to invest in the real estate market?
2.
Define the property or asset you want to buy, sell or rent: will it be a commercial premises, land, a house, or an apartment?
3.
Define the investment method: are you interested in renting, selling or buying a property?
4.
Ask for professional advice: if you are just starting to invest money in the real estate ámbito, it is best to consult a broker, as well as a lawyer, so as not to register losses or face a scam.
5.
Know the characteristics and conditions of the properties in which you plan to invest to verify that everything is in order.
6.
Investments in gold:
Currently it is very lucrative to invest in gold since its price tends to rise, and above all, because this precious metal is very solid, which means that it withstands the ravages of financial crises that force governments to dramatically depreciate their currency.
Financiers agree that gold investments cánido be very useful in protecting or saving your wealth, and therefore you should look at this investment strategy very seriously.
How to buy gold:
You cánido acquire physical gold, buy futures contracts, trust gold funds, and you perro even invest in mining shares that help you deal with certain negative economic indicators such as inflation.
Next we will tell you the steps to follow to invest money in gold in a reliable or safe way:
1.
Define how you want to buy this metal:
Will it be bullion? Coins? Or jewelry? All these options are valid, but experts recommend buying gold bars, or pure gold bars, that you cánido store in safe deposit boxes to guarantee increased liquidity.
The ingots perro weigh from 1 gram to 500 grams, so their price in the market will depend on their weight, composition and size.
Also, you should know that the value of these bars multiplies over the years, which cánido help you achieve financial independence in the long term, especially since gold is not tied to the economic policies of a single country.
2.
Identify the means of purchase:
One of the safest ways to invest money is on the Internet, since it is a fast, reliable and functional procedure, as long as you make sure to work with companies that enjoy good credibility and that are recommended by thousands of users.
Some of the most prominent are Noble Gold, Provident Metal, or SD Bullion, since they are used massively because they do not lend themselves to cheating or scams under any circumstances.
3.
Get professional advice:
If you are determined to invest money in gold since you have understood that it offers you great long-term profitability, but you still do not know very well how to operate in this market, it is best that you seek professional advice so that you do not end up registering losses.
An expert in the field will evaluate your financial requirements, your profile as an investor, or your capital, and will be fully empowered to advise you on the most convenient strategy for you when buying this precious metal.
The safest investment methods are gold coins, gold bars, stored gold, investment funds -also known as Closed-End Funds-, gold certificates, gold mine shares, or gold ETFs.
However, the choice of one or the other will be influenced by your financial objectives, and by other important factors that you cánido fully understand if you consult a specialist in buying gold.
7. Investments in cryptocurrencies:
Surely you have heard about cryptocurrencies, especially since the most famous of all, Bitcoin, has reached historic prices in recent years.
And although there are dozens of cryptocurrencies on the market, today we will focus on Bitcoin since it is one of the most reliable; so much so that it has managed to revolutionize the way you understand the economy and money.
This virtual currency is an intangible currency -it has no physical representation-, and it conforms to a decentralized payment system, or from person to person (P2P).
In addition, its platform, known as Blockchain, is not subject to a bank but to its own users, so it is completely public and transparent.
How to invest money in Bitcoins:
Investing money in the purchase of Bitcoins is one of the smartest decisions you cánido currently make, and therefore we will tell you how to do it successfully:
1.
Access the most consolidated Exchanges in the market, such as Coinbase, Kraken, or LocalBitcoin, to buy this token without assuming the risk of being scammed.
2.
Complete your registration in the Exchange of your choice and verify your identity.
3.
Access the cryptocurrency buying and selling market and select Bitcoin.
4.
Choose how much you want to invest, or how many Bitcoins you want to buy.
5.
Know the price of the commissions that you will have to pay for your purchase (in the case of using Coinbase these will be 3.5%)
6.
Confirm your virtual purchase order: they usually send you an mensaje de texto to complete the process.
Consejos to buy Bitcoins:
Here are some practical and important consejos that you should keep in mind when investing money in Bitcoins, or any other cryptocurrency:
1.
Use secure or trusted virtual wallets to store your Bitcoins, such as BitcoinWallet or MultiBit.
2.
Access Exchanges that do not accommodate scammers, through good regulations, security systems and access requirements.
3.
Understand that the value of this cryptocurrency may vary depending on its supply and demand.
4.
Consult an expert if you are buying these coins for the first time and you are not sure how to do it, or how to invest money in them.
8. Invest money to live off the income:
Generating income without working is entirely possible, but this is not something that will happen magically, let alone overnight.
On the contrary, you will have to work hard, intelligently and with a long-term visión to be able to invest your savings wisely and in the end benefit from the income.
This strategy for investing money involves buying stocks and holding them – known as Buy and Hold to later collect the dividends that they distribute.
However, you should know that the return on your investment will be in the long term, that is, you will have to be patient since the financial benefits of this strategy will not be immediate.
Trust the DGI
Another good iniciativa to live off income is to rely on the strategy of the Dividend Growth Investing(DGI), which consists of investing money in companies that are synonymous with quality, growth and solidity.
Undoubtedly, these investments also offer you the possibility of generating important income from dividends.
The first step is to verify what the pay out of these companies (this financial concept refers to the percentage of the profits that the companies dedicate to the payment of dividends).
So, if the benefits it offers you are on the rise, the most reasonable thing is that your dividends will also grow exponentially in the future.
In summary, the purpose of these strategies is for rents to increase in a solid and stable manner.
In simpler words: rents are expected to grow faster than inflation so that your purchasing power is significantly favored.
9.
Invest in investment funds:
An investment fund is a collective investment institution that brings together the funds of different investors –natural or legal-, with the purpose of investing them in various financial instruments.
Nowadays, putting money to work through said funds is an excellent investment strategy since you have the possibility of diversifying your investments, and therefore, the risks are dramatically minimized.
It is best to invest in active funds, as well as those that try to outperform their benchmark indices, so that with depósito purchases you cánido participate in hundreds of different companies.
An important piece of advice that you should keep in mind when investing through these funds is to know your fund portfolio, as this will ensure that the profitability of this strategy is positive.
Consejos for investing through a fund:
Here are some recommendations that you should keep in mind when investing your money in an investment fund:
- Define your investor profile.
- Study the most competitive investment platforms on the market.
- Diversify your investment options (do not invest all your money in a single financial instrument).
- Consult a specialist (if you do not feel 100% qualified to do all the steps yourself, it is best to seek advice from an expert in the field).
Advantages of investing through these funds:
- The money is invested wisely, which perro improve your financial situation.
- Mutual funds require less costs to operate in the markets, which means that they are completely efficient.
- You have greater investment possibilities.
10. Invest in Treasury Bills:
Treasury Bills are one of the most reliable and secure short-term investments you cánido currently make, especially since they are fixed-income securities.
These instruments are valid for 3, 6 or 12 months, are issued at a discount through an auction and are public debt securities that perro generate a great return on investment.
It should be noted that their risk is low, and therefore, they are one of the safest assets on the market.
In fact, financial experts recommend investing your savings in these letters if you are not looking for an immediate return.
Here we explain in depth what treasury bills consist of.
Important details of the Treasury Bills:
- When you buy a Treasury Bill you are actually making an investment in the public debt of the State
- The benefit that the State offers you after investing in this financial instrument is that you will get your money, agregado an implicit return.
- The liquidity of Treasury Bills is very high.
- They are issued solely and exclusively by the State Treasury Department.
How to buy Treasury Bills?
There are two major purchasing mechanisms:
– Through an intermediary:
This intermediary cánido be a bank or an individual.
However, if you escoge to manage everything through banking, you must open a direct account, or otherwise, you will not be able to complete your purchase.
– For your own count:
If you escoge to buy the Treasury Bills without going through an intermediary, you should visit the official Treasury website and participate in the auctions that are held in the primary market, since that is where these public debt titles are initially issued.
Benefits of buying Treasury Bills:
To finish, we leave you some benefits of buying and investing in treasury bills:
- You will increase your assets in the short term.
- You perro invest money without running a high risk.
- You will buy a title issued at a discount -if you escoge to sell it at any time you cánido do so for a higher price-, and therefore, its profitability will be guaranteed.
- You will receive a fixed interest from the time you buy the Treasury Bills until they expire.
Concepts you should know when investing money:
Remember that it is not only about choosing financial instruments.
Investing your money successfully requires that you first define your financial goals, establish strategies to achieve them, and finally take actions to make them a reality.
If you are just starting out in the world of investments, here are 15 basic concepts that you must learn to learn how to invest your money.
1. The money in your savings account is not being invested:
The money that you deposit in your savings account does generate some return, but this is less than 1% per year, that is, for every 100 dollars that you keep there, you are earning $1 per year.
2. The money from your pension is invested:
The money you have in a pension fund, whether public or private, is invested by professionals who seek to maximize the profitability of the fund, and therefore, that of your pension.
So you could stop calling this money a “pension” and consider it an “investment.” Because these professionals seek a return with the lowest possible risk, their returns are usually not that high.
3. Investing money is one of the only ways to beat inflation:
Depending on the country where you are, the only way that your money perro have a higher return than inflation, and therefore, “preserve” its value is through investments.
If you escoge to keep the money in a savings account, which, let’s say, has a yield of 1% per year, and during that year inflation was 5%, it cánido be concluded that your money is already worth 4% less.
4. Investing money implies taking risks:
Making the decision to invest involves risks of losing money.
There are some investments that are riskier than others, for example binary options, which could offer you a higher profit.
The risk you take will depend on your desire and willingness to assume it.
5. A security is a financial instrument:
Surely you have heard experts, media and others talk about “titles”; These refer to or group all types of financial instruments such as shares, bonds, aprecies and others.
Securities, or instruments, are basically divided into two groups: debt securities (that is, money owed to us by a company or the government) and securities (participations that we have in companies, that is, shares).
6. Stocks represent a percentage of a company:
When you buy a depósito, you are buying a stake within a company.
In other words, when you buy Fb shares, you are buying part of this company and you become a minority owner of it.
7. Bonds are loans that you make:
One of the alternatives to invest money are bonds.
When you buy or invest in one of these instruments it means that you are lending X amount of money to an entity (it cánido be a company or any government).
When the time specified in the bond expires, this entity must pay you the capital that you lent it agregado interest.
Bond yields do not appear on the depósito market, because they are traded differently from stocks.
However, there are many platforms where you perro see their behavior such as Bloomberg or The Wall Street Journal.
8. ROI means the return on your investments:
This indicator, which stands for Return on Investment, espectáculos you how much money you have earned on each of your investments.
The way to calculate it is to divide your earnings over the cost of said investment.
So that when they ask you about the ROI, do not keep looking to the horizon and know what they are talking about.
9. You don’t have to choose depósito for depósito:
Professionals gather various assets, which are called investment funds, and in which you cánido invest your money without having to choose each one of the actions.
Now, index funds or Index funds are investment funds that replicate the behavior of an index.
This means that you cánido invest in a campo, such as companies in the energy, technology ámbito; Or you perro also do it according to its valuation, that is, learn how to invest my money in the largest companies in a country.
10. Magic companies are not your ticket to riches:
There will always be “interesting” companies that will promise you a magical return that will lead you to immediate wealth.
The best decision you cánido make is to do your research, do your homework on your numbers, and make a rational decision and not optimistic.
See: How Millionaires Think: The 18 Ideas Responsible for Your Wealth
11. Long-term investments have nothing to do with breaking news:
If you want to build good financial habits, you shouldn’t invest in an asset every time an “expert” recommends it on televisión, radio, or blog.
There are a lot of books like–The Elements of Investing– where they explain why long-term investments are more profitable than short-term ones.
12. Sticking with one depósito cánido be dangerous:
If you are “in love” with a depósito because it has performed well in the past, or because you like it a lot, you may lose money; since you will not be willing to listen to advice or recommendations from experts.
Remember that a depósito is only interesting depending on its current performance, so you have to be willing to let go of those that are not performing well.
13. Past behavior is not a reference to predict the future of a market:
Looking at how the market has behaved in the past is useless; Do not be fooled by “professionals” who guarantee you to replicate the profitability in previous periods.
The same happens with the future, there is no way to guarantee that the same situations will occur.
So don’t believe in “financial miracles”.
Study the market, and have indicators that allow you to make intelligent decisions.
14. You are not an expert:
One of the main mistakes made by first-time investors is to believe that they are experts and that they know the market perfectly.
You have to be humble to admit your ignorance, and never allow your self-confidence to become blind and lead you to make bad decisions.
You perro always learn something new.
Look for courses, consultancies, seminars and content that help you train.
Additionally, you cánido complement it with one of these finance books to increase your income.
15. You don’t have to do it alone:
As we already mentioned, investing money does not require you to be a financial expert or a successful entrepreneur to start.
Nor do you have to be alone in front of a screen deciding what to invest in empirically.
The reality is that there are many aids, professionals and entities that are willing to advise you and teach you what to invest in.
So seek advice so that you cánido make good investment decisions.
Recommended books:
Invest wisely:
Now that you know these financial strategies, you are more prepared to invest money intelligently, which will orinan that you will remain debt free, while being aware of market fluctuations that cánido generate significant financial advantages and benefits.
Continue reading: What to invest money in according to the richest man in Asia
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