What is investing?

Investing is putting money into something like an asset with an expectation to have a positive return or to increase in value.

How do I invest my money to make money?

Are you asking this question or wondering how you can invest your money? Well, this post will give you an answer on ways you can invest money.

Here are the best ways to invest money.

1. Stocks

One way you can grow money is to invest in stocks. Stocks are company shares, when you buy a company’s stock you get a share or right to participate. In return most stocks pay you dividends .stocks comes in variety and it all depends with the company.

2. Business

Business is another way you can invest money .If you want to grow your money, you can start a profitable business depending on the amount you have. When starting a business it is good to start small and then grow. This will help you to learn how to operate and spending money where necessary.

3. Valuable goods

Another best ways to invest your money is buying Valuable goods. This is precious metals like Gold, Platinum, palladium, silver etc. Your portfolio keeps balanced when investing in precious metal which protects a portfolio from inflation. This is because precious metal keeps their intrinsic value.

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However, like any investment, you shouldn’t put all your money into precious metal.

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4. Real estate

Investing in real estate is another way you can grow money. Real estate investing involve buying commercial or residential property, owning, managing, Renting or reselling real estate to earn a profit.

Also, there’s a way you can invest in real estate without buying property. For example, invest in real estate mutual funds, Invest in a company that own and manage real estate, lend a hard money loan –loan to real estate investors, invest in real estate online etc.

5. Lending investment

Lending money to earn interest is also a way to invest your money but you earn a low return. There are many online platforms where you can lend your money .for example there’s Peer to Peer lending, Lending Club etc.

NB; it’s advisable not to lend all your money to one person or company .Instead, try to diversify risk.

6. Saving-investment

Saving is another less risky way to invest your money. You can open a saving account in any bank. When you deposit money in your saving account, you lend bank your money and in return you earn interest. If you consider yourself as risk-averse, you can go for this method though the return is very low.

7. Bond investment

Also, a bond is another way you can invest your money. Bonds is loan lend to company, organization or Government by investors. In return, investors get bond face amount /principal value plus periodic interest which is according to the agreed terms.

8. Mutual funds

Another method you can invest your money is investing in Mutual Funds. Mutual funds are a pool of funds from many investors which is managed by one manager. Mutual Funds is invested in different ways to diversify risk.

Other investment includes:

9. Education

In many cases, education is often called an investment. To me, I agree with that because you can use the skill learned to increase your income. For example, you can enrol to a certain course and then start offering that service e.g. catering, programming etc.

10. Trade options

Trade options is another way you can invest your money. There are many options in trading like Forex, cryptocurrency, binary options trading etc. if you don’t have the skill required to trade, you can hire a broker to manage your money or a Robo advisor.

Bottom line

The list above shows some of the ways you can invest money to grow your money. When choosing your portfolio, you need to analyze each an every option. Also. You need to know the risk involved and period required.

It is also important to diversify your investment to reduce the risk of losing your money “Don’t put all your eggs in one basket.”

Have you used any of investment? Share your experience

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