Ideas for Investing Saved Money
If you have some savings available and you do not know where to invest it, in this note we give you some tips to choose the best option. Before putting your savings anywhere, it is good to keep in mind some recommendations of those who know more about how to invest money.
1. Pay Debts: Experts say that one of the best ways to invest is to pay debts. By paying off the credit card bills, a loan or mortgage will greatly reduce interest, and in the long run, the salary that is earned yields more.
2. Life insurance: Those who do not have debts can invest with life insurance, major medical expenses, home, car, etc. This is how dividends are paid in the long term. All are designed to help the person to face some high expenditure that not all have the possibility to face on their own.
3. Invest in stock or gold: For moderate savings, you can choose to invest in stock or gold . It is always advisable to have a broker or an expert to advise us, in order to explain to us perfectly which are the best moves, the most profitable markets, etc. And also, so that the profits are superior, entering in a greater group of investors and obtaining more interests.
“Experts say that one of the best ways to invest money is to pay debts. When you cancel them you reduce interest and, in the long run, the salary you receive is higher.”
4. Diversify: If you have a considerable amount of money saved there will be more alternatives to invest, but you must always take into account diversification, that is, do not put everything in the same transaction. Saving a portion of the monthly income helps increase that “well” of money to have access to better investment opportunities.
5 Investment in real estate: If you have a considerable amount, you can invest in real estate, buying an apartment or a house. Having a property can be a business or not. If we use it to live becomes a liability, not an asset, because it generates expenses. If we rent it, it is an income that we receive every month, and if we sell it when prices rise, we will increase our investment.
Strategies for Investing in Real Estate
1. Understand that it is an investment in the medium or long term: If you are looking for a profit in a few months, this sector is not a viable idea. Keep in mind that it takes an average of 8 months to be able to sell a property at a price that suits you. To this must be added the time that you spend to find the apartment or the house, and the one that you need to wait for its value to appreciate. According to experts, all this amounts to at least two years.
Money in hand and ideas for investing safely Saving a portion of the monthly income helps increase that “well” of money to have access to better investment opportunities.
2. Use your money well : If you are looking for a loan to buy a house, you should know that some banks or institutions offer financing for 70%, 80% with long terms. But you can also consider acquiring a smaller property first so you can liquidate it quickly, and then “add steps” to a larger one.
3. Living rents, a dream not so far away: Once you enter the “real estate bubble”, you will be acquiring more and better properties and have several to your credit. This can take you maybe 10 or 15 years, but the good news is that later, when you retire, you can live much better, or not have to wait until the age limit to stop working.
4. A mansion is not a good investment: The patrimonies that cost more are difficult to sell, especially when there is crisis. It is preferable to acquire two small houses or apartments than a large one. If it takes two years to sell “well,” a mansion requires about five. And if your idea is to rent the properties, it will also be easier to find two families who want to rent two or three rooms, than a large one that is willing to rent a house with five rooms and three bathrooms.
5. Always buy safe: There are “opportunities” that can dazzle you, but you should not always trust them. If it is too cheap or if there are many facilities to pay, analyze the case more carefully. While they charge commission and prices can be higher, a real estate is much safer, especially if you do not have much experience.
“If you are looking for a profit in a few months, buying properties is not a viable idea. It takes an average of 8 months to be able to sell it at a convenient price.”
6. Do not sell ahead of time: To recover your investment, as stated above, you must wait at least 24 months. It is the right time for a lease, for example, so you do not leave the property “empty” for two years and also take advantage to earn extra money each month. If you sell it prematurely, you may not get the desired amount and not get the corresponding earnings.