How to invest money to make money?

How to invest money?

In 2010,4.4 billion adults of the Earth's population gathered $195 billion worth of assets. A statistical adult has therefore financial resources of an average value of USD 43,784. On average, the most prosperous European is Switzerland, which has USD 372,692 and the poorest is Moldova's inhabitant USD 2,534.

It is no coincidence that the Credit Suisse Research Institute is involved in the research of wealth, as it is the richest banks in Switzerland that willingly locate their fortune. Banks offer them a service called wealth management. It is based on locating customers' money in various funds and financial instruments with a high rate of return.

How rich do they invest money?

35% in stocks and equity (growth trend)
45% in deposits, cash deposits (low trend)
20% other investments

The rich use credit much more often than the poor. They borrow cash in order to multiply it. Their borrowed capital costs them cheaper than if they were to take advantage of their own capital, which is usually well invested in the long term.

Non standard investments - profits over 25 years

French wines up to 20% a year
Works of art up to 15% a year

This type of investment works better for experts in this field; those who do not have knowledge and understanding of the art or wine market may lose or be cheated by bad advisors.

8 steps to wealth

Systematic savings

Systematic placement of even small money on a bank deposit can eventually make you a millionaire. With the current interest rate on bank deposits and taking into account the capital income tax, it is enough to deposit USD 950 each month into a savings account, so that after 30 years it will take one million. Its value will be smaller than today, due to inflation, but it will be a full million USD.

Certain investments

Bank deposits and the purchase of treasury bonds are the most reliable investments. They do not guarantee the highest rate of return, i. e. the profit from money invested, but they cannot be lost. With fixed interest rates at the moment of opening the deposit, you know how much you will gain.

Safe portfolio

The investor's golden rule is that not all eggs are kept in one basket. Investments must be diversified. Create a wallet in which shares and deposits, as well as deposits, are held, property, gold and collectors' items.

Home budget management

In every household, money is wasted. You need to locate where you leak and look for energy savings. And if they are lacking, do not use expensive moments, but a bank loan.

Caution with credit

Loans are for the rich, not for the poor. The dwellings of rich America are twice as dull as the inhabitants of developing countries. The rich benefit from investment loans, the poor benefit from consumer credit. Take credit only if you are sure that it pays for your repair.

Only assets

Everything that you have can either earn, or cost you money. A house whose livelihood is expensive for you is therefore a passive one. But a rented flat, from which you derive profits, deposits and stoks- these are the assets that you work for. The godly people are trying to put the main asset.

Risk investments

Do not be afraid of risk, but limit it in practice. The highest income is obtained from investments burdened with risk - one can earn profit or lose money. Do not invest everything you have in risky ventures.

Psychology of stock market games

Warren Buffett, a well-known billionaire who enriched himself on the stock market, said that if your hairdresser advised you to buy stoks, it's time to sell them. Tracking market trends is the responsibility of every investor. So listening to what others say. As the Buffetta example shows, there is limited confidence in any counsellors.