How To Invest Money

                    If you’ve played Black Jack, you know that the goal is for the sum of your original two cards and any other drawn cards to be no greater than twenty-one.  You never know whether the next card to be drawn will be the one to put you over that limit.  You must predict whether each possible step (drawing another card or “staying”) will bring you closer to or further away from your goal.  This is how investing your money works.  Investing money is the process of placing your money in a given account that will ideally allow you to accumulate wealth over time, but you are never completely certain whether a given investment will bring you closer to your goals. 

                     Investing money prepares you for the future, either to financially support your lifestyle goals or to ensure that you have enough money to survive unexpected hardships.  Investing money is not like saving your money because investing money allows you to increase its sum over time by accumulating interest each quarter or year.  Investing money prepares you to survive after retirement, allows you to reach financial goals faster, helps you to start a new business or grow a current business, and puts you in a better position to help others reach their financial goals.   In this website we’ll take a look at three types of investments: real estate investments, stocks and bonds, and gold. 


Real Estate Investing

To invest in the real estate industry, you can either buy a property to be upgraded and sold for a profit or you can purchase and lease a property to renters.  To minimize risks, invest your money in an account held by a Limited Liability Company (LLC) or a Limited Liability Partnership (LLP), which is not linked to your personal assets.  The amount of money that you earn should cover the investment risks, the property taxes, and the costs of maintaining and owning the property.  As you invest in real estate you accumulate wealth from: 

1. Increases in property value caused by market fluctuations, changes in the nearby real estate environment, or property enhancements,

 2. Income from renters, 

3. Income from property managers or real estate agents, and 4. Income from vending machines or coin-operated laundry machines located in the property. The risk in real estate investments is relatively low and the returns on investment are usually high and earned quickly

Stocks Investing

The next way you can invest your money to accumulate wealth is through stocks and bonds in the stock market.  Many business owners sell a portion of their company, called a stock, to interested members of the public, giving them some ownership stake in the company in return for money needed to fund some of the business’s operations.  A bond is a debt agreement between a business and an investor in which the investor receives income from interest on the payment he or she made to the business. Stocks carry greater risk with longer-term rewards as they offer equity stake in the business, while bonds carry less risk but fewer longer-term benefits.  Bonds offer the benefit of income in the short-term. 

Gold Investing

You can also invest your money through gold.  Gold is a good option because it is a rare resource that doesn’t depreciate in value and is protected against inflation.  You can invest in gold by purchasing gold bars or coins, investing in gold exchange funds through a broker, or by investing in the stocks of gold mining companies.  Experts recommend investing gold as part of a diversified portfolio plan that includes other options such as stocks and bonds and mutual funds.  Investing your money in gold contributes to the growth of your wealth over the long-term.  Popular gold coins include American Eagle Coins, Canadian Maple Leaf Coins, and South African Krugerrands.  They can be bought online through websites such as eBay or specialty gold websites, banks (your most expensive option), or gold dealers.  Gold bars can be purchased in the same ways, but they are harder to find.  When investing in gold, it is important to be aware of the economy’s health. For example, if you believe the economy is headed for a downfall, then that would be a good time to buy gold. 

Investing in yourself

            Investing your money means investing in your future.  It is important to have a plan with time-sensitive steps to ensure you reach your financial goals in the future.  To have the best chances at maximizing your wealth, you’ll want to have a diversified portfolio with different investment options, each with different levels of risk.  It is important to have a good understanding of how the economy fluctuates and to be aware of the prices of your various investment options before you decide where to invest your money.  You need to know yourself: What do you have now? What do you want for your future?  How much risk are you comfortable with?  By making a solid financial plan now and sticking to it, you will have the type of financial future you always dreamed of!