Top Ways to Invest Money and Why
To make money when coming from a below average background needs work and dedication. The means of production for every business is designed to bring in enough income to make profit. This in turn increases the output of the business. There are companies that need investment and the returns can be very lucrative. The Stock exchange is one example where companies trade and profits are shared in accordance to stock purchase. However, it is not only business that make money through direct capital injection. There are other ways ordinary middle class working people can make money. Investment in things like art, classic cars or properties can yield welcomed cash in the long run.
Here are the Best Ways to Invest Money
1. Real Estate and Rental Properties
Globally over the past three decades has seen a raise in the property market. Speculation and future projections has made property a place where ordinary people made returns on their properties. In some porsche areas, property prices have doubled in less than a decade. You have to be sure of a few things before you invest in property. The stability of the country, area, proximity to services and any future developments like malls or train stations are things to consider. Some have lost money due of investments in dodgy areas.
2. Oil and Gas Industry
The price of Crude oil rose to a record $147 per barrel in 2007, driven by investors and speculation of peak oil. A lot of people who invested in oil companies such as BP or Shell made substantial profits. There are a lot of small oil and gas companies that you can invest in. When they find a big oil field, you will be rewarded with your faith in them. Risk equals reward for companies who know what they are doing. The need for energy is growing every day. China is one country that needs energy for its rapid industrialization. Oil is responsible for most products the modern world uses such as plastic, paint, transportation, and other big industries. Gas is a form of energy that household and industry needs. Investment in oil and gas is one of the best places for returns.
3. Hospitality and Tourism
The desire to see new places for leisure or just a general attraction to a destination is part of humanity. Hospitality and Tourism offers growth opportunities to investors. Think of number of people getting married every year. The honey moon travels that come with this. Another section of the population travel just for holidays.
There are big conferences every year held in cities and hotels around these venues make lots of money. Investment in this sector has to be done strategically. You will need to know areas of growth and businesses to invest in.
4. Transportation Industry
The Transportation industry feeds in perfectly into Tourism. They are joined in most aspects. When going on holiday, transportation will play a key role. From getting a taxi taking you to the airport. At the destination you will need to use transportation service providers to move from one location to another to explore the city. There has been direct investment by ordinary individuals in this sector. Transportation Apps have played a crucial role in ordinary people using their cars as small businesses providing services. Not only in tourism but the local population but business uses these taxi apps. Alternatively you can buy stock on any company that has a focus on transportation.
5. Textile Industry
Clothing is a primary need for humans. Clothes wear and tear in the process of time. There will always be a need for buying and selling clothes. Investment into this type of business requires patients and dedication. Returns do not come in a short space of time. You may want to buy shares in a listed company.
6. Information and Communication Technology (ICT)
ICT has been thriving and it will increase to do so. The need to communicate on personal capacity or interaction between companies is what the modern economy is built upon. All Fortune 500 companies have platforms and run on ICT facilities. More than 450 000 businesses are registered every year globally. You can rest assured that they will need ICT platforms to conduct transactions. You can choose to invest in service providers of these platforms or manufactures of hardware.
Governments always turn education sector into shambles. That is why enterprising individuals have made education private. There is great value in investing in companies that puts their financial worth into the future generation. You can choose to invest in an independent school or a group of institutions that provide education at cost.
8. Jewelry and ornaments.
The amount of couples tying the knot brings growth to this industry. Rings and ear rings are leading in this sector. Every weekend there is a wedding taking place. Consider also societal events that require glittering garments and necklaces.
Food is life and where there is hunger there is a need for food. The sector will always be in existence. Investment in this sector is for people who want returns in the long run. It is a capital heavy industry as it requires enough money to buy land, livestock or seeds, fertilizers and taking the produce to market. It takes years to see return on investment.
When is the best time to invest money?
Invest at an Early Age – When working as a young person is importance you begin to invest your money monthly. You can do this with a savings account or fixed account where you can get interest on your money at 5% to 8% depending on the banking institution. There are other financial products investment companies offer you can look into.
Buying and Owning Companies Shares.
Trading in the Stock Exchange is another way of investing. You need to know the companies you are putting your investment in. You need to know the sector and its growth prospects. You will need to know also the risk associated with investing with the companies you choose. It is best to have a balanced portfolio and not put all your money in one company or one sector but different index, commodities and ETF or currencies.
Mutual Funds and Treasury bills.
Treasury bills are long term investment products. Basically they are buying debt of a government with a promise to pay you interest when the date is due on matured bond.
Network Marketing Products.
Selling products that are from a marketing chain is what some people go for. They purchase stock at factory price and sell it to the public with a predetermined mark up. The difference they keep as profit. Some of these are Tupperware or AMway.
It is always best to start early to invest to see return that you can enjoy. It is advisable to study the section or sector that you want to put your hard earned money into. Learn about the past and look into future projections. Making money is not easy hence it is imperative to have another source of income.