Tuesday, March 26, 2013

6 ways to invest your money


If you're European, and you have some money in a bank account, you're probably wondering where to put or invest your money. We are living times of uncertainty. Investing is always a risk, so you should always weigh the risks with the probable gains. Here are 10 ways to invest your money:

1) Stocks - Investing in company stocks is one of the most popular ways of investing money. Each share you buy represents a small portion of ownership of the company. It's an investment where you can win quickly, if the value of shares go up, but you can also lose a lot of money if the company does not go well, and the value of shares drops.

2) Banking - Bank accounts are the traditional way of storing cash, and offers you extremely low returns. There are different types of accounts at banks, like personal savings accounts, business savings accounts, personal checking accounts, business checking accounts and Certificates of Deposits. By these days, this is the kind of investment that we are all trying to avoid.

3) Business - Be our own boss is the dream of many of us; to have our own business, means that we could became financially independent and free from hierarchies, but it is an extremely risky investment; there is an huge risk of losing everything. To start your own business, you must do a lot of research, make a business plan and seek advice from others with experience. And, must important of all: what kind of business.

4) Real Estate - Investing in properties is one of the most popular type of investment. Real estate investing can become extremely lucrative if you can buy in the proper locations. You can purchase homes to fix them up and sell them for a higher price, but nowadays it's very difficult to sell in some countries across Europe. Or you can purchase homes to turn around and rent.

5) Commodities - Commodities are physical products like corn, sugar, oil, metals, etc. Don't panic! You don't have to stockpile them at your home. They are traded on exchanges, similar to stocks. This is a high-risk investments because they are exchanged based on futures contracts, so you're betting on costs going up...

6) Metals - Precious metals, such as gold, is another way to invest your money. The value of precious metals rises when other investment values drop. By these days investing in metals seems the most secure way to save your money; although the return is very low, by other way it is very improbable that the value drops. And you can keep it at home! So, if your are mainly concerned on how to keep safe your money, independently of gains, this is the better option! Or you can keep your bank notes under your mattress...

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