The Best Way to Invest Money in 2020

The Best Way to Invest Money in 2020

Best Way to Invest Money

Best Ways to Invest Money: If you expect that this article will make you a millionaire without working hard, without earning or saving anything then you are in the wrong place. But if you are like those people who are disciplined and can save at least some money per month then today by the end of this article you will know exactly what to do to make your money grow.

1) PROPERTIES Putting resources into land is a well-known kind of speculation. Contingent upon your technique for contributing, land contributing can turn out to be incredibly worthwhile whenever done in the best possible areas and the right way. You can buy homes to set them up and sell them at a greater expense, or you can buy homes to pivot and lease them to occupants for a marginally greater expense.

2) FOREX Here and there, Forex exchanging is an occupation like whatever other activity where you need to invest energy to get a money related prize. One major contrast is that in Forex, you can invest effort and really lose cash! Be that as it may, the principle contrast between a vocation and forex exchanging is that once you can reliably get more cash-flow than you lose, you can expand your profit without investing more energy.

3) BONDS Government and corporate securities are at a moderate hazard level when contributing. These are obligation protections where the borrower is required to pay the premium as well as a guideline to the financial specialist sometime in the not too distant future. This is normally low premium except if the borrower defaults, in this manner, the hazard is moderate for financial specialists. Financial specialists can likewise profit by this sort of speculation by permitting the cash to increment while their youngsters are growing up; when the kids arrive at 18, the ventures can rapidly be gotten the money for out for school or another cost.

4) Savings Account A savings account is a basic bank account that allows you to deposit and withdraw money while earning interest. Withdrawing money from any bank is very easy but we are often tempted to spend as long term investment through savings account becomes a challenge. Liquidity is high because you can take your money at any time. However, each bank has certain financial transactions that you can do every day. The risk is zero. If you choose a reliable bank, your money is safe with the bank but the returns are low. How to invest? Simply select the bank you like or trust the most, walk into your nearest branch and they will help you open your savings account.

5) Fixed Deposit A Fixed Deposit is when you give a certain amount to a bank for a fixed period i.e I am not going to touch this money until this period ends and in return you will get a higher interest rate than a regular savings account. depending on how long are you giving your money for. Are you giving it for 7 days, 3 years or 10 years? Higher the tenure, the higher the interest you will get. Now coming to the parameters. Liquidity is medium because there are some banks that don’t allow you to liquidate your FD online. Plus, if you withdraw your money before your maturity ends then you have to pay a penalty fee. Risk is zero. The bank has to return back all of your money after your maturity ends along with the interest.

6) Health Insurance is not a typical investment option, Life is unpredictable. Tomorrow, if God-forbid you meet with an accident or are recovering from an ailment then the hospital bills are going to be crazy. In such a time, you don’t want to beg for money and spend the rest of your life in debt which is why health insurance becomes very important. The risk is zero and the returns are enormous because it can save your life or it can save you from debt. There are multiple websites like PolicyBazaar, Coverfox, etc that will help you compare health insurance so that you pick the best health insurance according to you. All you have to do is call the executive and they’ll come to your office or your house to get the registration done.

7) Stock Market If you’re like me, you’ll stay away from the stock market for most of your life, thinking, what if I lose my money?’ And you’re right. Some people have lost everything in the stock market but it has made some people very rich. The stock market by name is a market where you can buy or sell shares of publicly held companies. It will be your job to discover what that is and to bring it about in the future. So the risk associated with the stock market is higher because if your analysis is wrong and the company does a bad job, you may lose your money. Warren Buffett, the third richest man in the world, has made his fortune by investing in the long-term stock market.

8) Mutual Funds We have just discussed that the stock market is a one-man show where you have to make all the decisions. But the mutual fund is team-work because a mutual fund collects money from people and creates a money pool. The fund manager uses this pool to invest in stocks, bonds, and other assets. We do not have to worry about where it is being invested as the fund manager takes care of 0.05% to 2% commission for this. You can invest in it once or start a SIP (Systematic Investment Plan) where you can transfer a fixed amount of money every week, every month, or every quarter to a mutual fund as you wish. There are many mutual funds Some are good for short term investment and some are good for long term investment

The best investment for you depends on what your needs and requirements are. Do you want to buy a bike? Do you want to buy a house? Save for your children’s education? Save for early retirement? We just discussed 8 investment options. How soon do you need your money back will help you decide which of these investment options is best for you.