What is the Best Way to Invest Money today – According to Top Millionaires
Up to this day, Most people are still accustomed to a certain lifestyle of Work, earn, and spend. An endless cycle that causes poverty. Why? There are two factors that decrease your earned income, Inflation and taxes. These factors are responsible for draining your hard-earned cash. Most people never find the best way to invest money in and escape the rat race. But, there are some fortunate ones who do.
How? You might ask. Through passive income. Imagine generating money while you sleep, isn’t that amazing!? One of the main reasons why the rich are rich is because they make money work for them.
INFLATION – The continuous rise of the prices of products and services, while the value of money decreases.
TAXES – Government issued financial charge for working individuals.
THE 3 TYPES OF INCOME
1. EARN INCOME
The most common form of income. People who earn this type of income will probably have a hard time escaping the rat race. You work for money when it should be the other way around. It’s also the most taxed income. By the time you receive your paycheck, it’s already been reduced. If you want to become rich and successful if you want to know what is the best way to invest money in. Then, you need to forget about earning this type of income.
2. PORTFOLIO INCOME
This type is mainly acquired from paper assets such as bonds, trust funds, and the stock market. Although it’s still taxed. The interest rates of these paper assets are not enough to overcome inflation.
3. PASSIVE INCOME
The bread and butter of every entrepreneur. Low to no tax, easy income, no labor. Now that’s something I bet everybody dreams of. This is the only income that can overcome the two factors of poverty, inflation, and taxes. Want to become wealthy? Acquire passive income. With this type of income and the knowledge about the best way to invest money in, you will surely be successful!
There are multiple ways of earning passive income. You just have to find something you’re passionate about and pursue your dreams. Perhaps you’re exceptionally gifted in arts and craft. Make that your passion, build around it. After a while, if you’re ready to sell your product. Advertise it through social media or create a website or a blog.
One of the most important fact you need to remember is – Money is a symbol, not a value. What do I mean? You are the one who earns the money. It’s your decisions and choices that put money in your pocket. If you are not mentally prepared to handle a business, then educate yourself first. Because what you are will determine how much money will come to you. So, seek and learn the best way to invest money in and create your destiny!
There’s an old saying “When you want to go fast, go alone. But if you want to go far, go together”. But let’s switch it up if you want to go fast, SAVE! If you want to go far, develop an insanely good investment strategy! Many people associate investing with saving, but it’s completely different. Saving is good for people with short-term goals while investing is for those who have long-term goals.
Why invest? Investing is the most effective way of attaining financial freedom. You can invest in multiple investment vehicles, each with their distinct risks and rewards. And as well as with other things, in investing, time is of the essence. One of the most important factors you need to learn is an amazing investment strategy.
But, it’s important to know what to invest in, when to invest, where to invest. And most especially, what are the best way to invest money in today. Why? Well, of course, to maximize your profit and return on investment. Wouldn’t you like that? Yes, you would!
What is an investment vehicle?
An investment strategy is an asset which helps investors increase their wealth by either long-term and/or provide passive income. There are a number of investment options you can choose from, but there are only three types of investment vehicles. Each of these types has their own unique degree of risks and rewards, but don’t be discouraged about the risks. In investing, risks can be reduced and most of the time, are avoidable.
By thoroughly studying and analyzing a certain investment vehicle before putting your eggs in the basket. You are able to identify the risks involved in that vehicle, and how to avoid it. Now that is some top-notch, investment strategy. All of the best entrepreneurs are experts in analyzing their chosen investment vehicles.
For example, Warren Buffet, The man who is considered the best investor in the world. Do you want to know his investment strategy? He specializes in stock market investing. Another example is Donald Trump. Sure, many people don’t fancy the guy, but there’s one thing you can’t deny. He’s an expert in real estate investments. He is an excellent creator of an investment strategy. That’s why he is undeniably wealthy.
Three Types of Investment Vehicles
1. Ownership investments
The leading investment vehicle. These are the assets that many investors divulge in. The main reason why this is the most popular investment vehicle is because of its potential high returns. Ownership investments vary in risk and returns, as there are many categories involved in this investment vehicle. This is without a doubt one of the best way to invest money in. If you wish to make this as the basis of your investment strategy, I highly suggest that you study this field thoroughly. Here are some examples of lending investments:
- Stocks shares and equity funds – These are shares of a company, brought by a certain investor, expecting it to increase in value over the course of time. Currently, there are 2 ways on how to earn money in the stock market, Capital appreciation and dividends.
- Real estate – These are properties bought by investors, who then after leasing it for long-term income or sell it at a higher price in hopes of gaining higher profit.
- Collectibles – Antiques, paintings, and precious metals. Investors buy collectibles in hopes of auctioning it later to collectors for a substantially higher price.
- Businesses – Now this is something most people know. Businesses are made to provide the public with products and services, and in return, the public provides their income.
2. Lending investments
This type is basically lending your money to a certain company or entity for a promised fixed interest in your investment. It’s typically low risk but also has a low reward. It’s ideal for the people who are afraid to take risks and are a stranger to danger. This is also one of the best way to invest money in if you are a safe player. Examples of this are:
- Bonds– Investors lend their money to the government or a company, expecting to get a fixed interest gain at a predetermined period of time.
- Certificates of deposit (CDs) – This type of vehicle is commonly offered by banks. It’s basically a note, promising to give the investor a slightly higher interest rate for a fixed period of time, for lending his/her money in the bank.
- Treasury Inflation-Protected Securities (TIPS) – These are investments offered by the government, in order to protect the investors from inflation. It works similarly like the certificates of deposit.
3. Cash equivalent
This type is mainly savings accounts and money market funds. This has the lowest risk among the three, but also the lowest returns. This type is a highly liquid investment with a maturity date of three months or less. This is ideal for people who have low income, or teenagers who are interested in saving but don’t have the luxury to make huge deposits. This is certainly one of the best way to invest money in if you don’t have much money.
Why do I need an investment strategy?
Asking this question is like asking why you need a map before going to a foreign place. Without a proper strategy, you will get lost. If you want to succeed in life you need a map. You need to create a plan to follow. Otherwise, all of your investment will crash when you least expect it. Having an effective investment strategy is vital in investing. Because it ensures safety and at the same time promotes profit.
How to develop an awesome investment strategy?
Developing an investment strategy is not a walk in the park. It will be hard, you will need to do a lot of research on your dedicated investment vehicle. But the fruits of your labor will be amazing. To help you start your journey in making your investment strategy. Here are 5 tips to follow:
- Conduct a research for possible strategies in your selected investment vehicle
- Know the in’s and out’s of your investment
- familiarize yourself with the potential outcomes, both positive and negative
- Find mentors to help you in your journey
- Never be afraid to experiment, most successful investors have their fair shares of failures
24 passive income ideas that can generate real wealth
Real estate investing
– Leasing is the key in real estate investing, acquiring a long-term passive income for years to come is the goal of real estate investing. A famous strategy used in real estate is buying foreclosed properties, fixing it then leasing it for future profit.
– This is similar to affiliate marketing. but, for this one, you first need to build relationships with your customers. Either through a blog or through social media. Then you promote advertisements of certain companies. The amount of commission you receive will vary based on the actions of your recipients. Making this a great tool for passive income and one of the best way to invest money in.
Make an online course
– One of the best generators of passive income. Much like selling a book, all you need to do is produce quality content that the people will find appealing enough to make them want to buy it. Then sell it online and make the internet work for you.
Buy a successful blog
– If you don’t have the time or the patience to start a blog, then this option is perfect for you. It may be more expensive than starting your own, but it does give you fast results. by purchasing a successful blog, then monetize it for profit. You can easily gain fast and reliable passive income. So, buying a blog isn’t a liability. it’s one of the best way to invest money in if you want to earn online!
Sell your photography
– Do you have the passion for photography and at the same time you want to earn passive income? Then try selling your passion. There are a lot of sites you can access to advertise your products. Examples of these sites are: Shutterstock, Photoshelter, Fotolia, Smugmug, and many more.
– There’s a sure way to winning in the stock market, and it doesn’t involve risks. Investing in long time successful blue-chip companies that give high percentage dividends is a must, for investors who don’t fancy risks.
Sell arts and crafts on Etsy
– Do you have the talent for arts and crafts? then maybe this is for you. Post your creations on Etsy and start earning you passive income now! I’m sure there are artists out there who want to display their art to the whole world and earn while they’re at it. So, I’m sure that this is one of the best way to invest money in for them.
Build an online app
– Chances are when you build your online app, a lot of people will come flocking in. Because it’s online. Now this is the time to start monetizing it or advertise your own products (if you have one). Or if not, there are numerous ways to learn programming and building your app. There are also several websites that offer free courses of these like: Zedlx, Teamtreehouse, and much more.
– In order to be successful in giving webinars, you must first be an expert in your niche. No one would want to pay for a webinar hosted by a random guy. They need to know that your webinar is worth the price. If you’re an expert on personal finance and money management, then you could give webinars about proper financial planning or how to get out of debt. Hence, if you are an expert, then this is truly one of the best way to invest money in for yourself.
– This is basically dividing you money equally in different CDs (certificates of deposit) with different maturity rate to increase the interest rate while decreasing the risk. Talk about placing the eggs in different baskets. Not, only is it diversified, it’s also placed in a larger safe zone.
Real estate investment trust (REIT)
– This type gives investors high liquidity stake in real estate and also offers high dividend yields. It’s similar to trust funds, but, whereas in “REIT“, your money goes into real estate. And as we know, real estate is the leading assets in making wealth. Almost every billionaire on the planet has investments in real estate, making it one of the best way to invest money in.
Answer paid surveys
– If you’re always on your laptop, then try something that could generate money while you work. It will only take a minute or two to finish these surveys. After that, you are rewarded with points you can convert into cash. Most survey sites are easy to find, here are some examples to jump start your day: Swagbucks, Toluna, Vivatic, My survey, Onepoll, and much more.
Monetize Youtube videos
– Another option of monetizing is through youtube. Just like in a blog, you need to have a good source of traffic before you can earn through monetizing your channel. But, once the ship has sailed. You’ll get many fish! There are hundreds of people out there that are making millions because of youtube. Which makes this one of the few best way to invest money in.
Write and sell your own e-book
– Writing an e-book is very time consuming, but the rewards after it’s been published are magnificent. The wonderful thing about writing an e-book is you don’t need a publisher to publish your book. You can self-publish it! Go to Amazon or any other platform that supports self-publishing authors and let the world see your creation.
Start a blog
– Starting a blog is a lot of work, but once it’s been acknowledged and you’ve monetized it. The passive income you’ll receive will be phenomenal. You can monetize it, you can use affiliate marketing or even sell your own products in it. This absolutely deserves a spot in the best way to invest money in. The possibilities are endless once you have gained a good source of traffic, you can sell almost anything you want, provided that they are related to your niche.
Create a membership site
– Make a website with content exclusively for members only. This will prompt other viewers of the website to pay you to be able to view your content. Note that people will only subscribe to you if you give them high-quality content. One of these great membership sites is a site called- The truly rich club – A members-only website that discusses the latest and best stock market updates, give loads of benefits and wealth strategies as a part of being an exclusive member.
Use credit cards for cash back rewards
– Be wise in using your credit card. You can earn a lot just by being smart, gather all your receipts and see how much you can get for cash back. There are several companies out there that are giving out services related to cash back rewards. So, this truly deserves a spot on our list of the best way to invest money in. Imagine getting a percentage of your money back while shopping!
– If you have a blog or a website, you should try affiliate marketing. You earn by advertising certain products in your domain. Your commission depends on the actions of your viewers towards the advertisements. It’s similar to insurance and real estate advertising wherein you receive your commission base on how your customers react to your products.
Start your own loaning company
– Loaning companies are making a fortune because of their interest rates. If you have an abundance of wealth and you wish to multiply it. Chances are, loaning is perfect for you. This type of investing is advised only for those people who are already in the big time investing world, as you will need a lot of capital in order to do this. This type is mainly used by banks as a way to multiply their profits. And is one major reason why the rich are getting richer because they found a way to leverage the system and use one of the best way to invest money in and make it grow!
Sell your art
– There are many investors who buy collectibles for future profit. You could sell your art in auctions to attain maximum yield. Of course, this is only applicable to artists who really have a passion for the arts. Why is this a thing? Well, there are thousands of investors who have explored and found out that art – through time – was found to increase in its value. That’s why more and more investors are now investing in art!
Get out of debt
-It may sound strange but it’s not. Escaping debt will lower your expenses, increase your income, and gradually give you passive income. This is without a doubt, a major step in becoming financially free and is one of the best way to invest money in. If you want to become rich and successful one day. Then, be sure to only have good debt. Never ever let bad debt control your life.
Create an app
– Another way of making passive income is building a mobile app, then either adding in-app purchases. Or monetize it through ads. This is similar to building an online app, but this one is limited to mobiles. Games and applications that are being sold at the android play store or apple store. Did you know that there is an estimated $50 billion circulating in the app development market and is increasing every year? I bet you didn’t.
Start a podcast
– In starting a podcast, it would help if you’ve already had a stable fan source or a popular blog. To backup your podcast. Much like a blog and webinars. Most people will listen to you if you are an expert in one subject. Because they want something new to learn, no one likes to sit a whole 2 hours and get up without gaining anything new. If you do want to start a podcast, become an expert in one field and provide value to your audience.
Write a book and collect royalties
– In book writing, you’ve got to have a publisher. So in return, you’re not paid directly like in publishing an e-book. Rather, you are paid through royalties. It pays lesser than self-publishing an e-book. But, having a physical copy of a book and distributing it globally is much more special than having a self-published e-book. Plus, it’s much more likely to give you praise, credits and even awards which will benefit your future books in the making. This is an incredible feat that every passionate writer wants to experience and is truly one of the best way to invest money in if you are that writer.