The common phrases ‘money makes the world go round’ and ‘money doesn’t grow on trees’ are tossed around frequently, and are both true and not true in equal measures. Technically money does grow on trees seeing as they are made from paper, however you can’t just pick a handful off every tree you pass. If you could, the issue of deforestation would be solved in an instant. As for it making the money go round, most people will agree that there are so many thing that are more important than money, however, you need money to live, and so it does make the world go round. Although – if you want to be technical, what makes the world go round is a careful balance of gravity and magnetism as we rotate the sun. But back the the main topic; investing.
Like leaves on a tree, there are ways in which you can ‘grow’ your money.
The term ‘investing’ encompasses a large and varied list of items and interests that you can become involved in, but all with the same end result of making a profit – hopefully. Smart investments should bring in a profit no matter how large, however, parting with your money is always going to be a risk, which is why it’s a smarter idea to spread your money out across enterprises, rather than lumping it all on one. The rewards will be smaller, but any losses will be smaller too. You can invest in material things, or hop onto the stock market – however you choose to invest your money remember only to do so if you have done the research. You can’t blindly throw your money at things – unless you are incredibly lucky, you will lose it all.
A ‘bond’ is when an individual lends a company or the government an amount of money for a set amount of time. Usually, the company’s physical assets are used a collateral in case the business folds, and they are unable to pay the loan back. A corporate bond is considered riskier than a government bond for that exact reason, so the interest rate set on a corporate bond is almost always higher. Th interest is how you make your profit. You should take advice on giving loans until you are skilled in this area – if the company does fail then there is zero guarantee that the assets will compensate your loss. Which is the reason why government loans are less risky – they can’t go bust, but they can fail in the enterprise you have invested in.
The stock market is a confusing, but a potentially profitable thing. People make millions off the stock market every day. Again, you should confer with an experienced professional. Buying stock means to buy a share (or shares) of a company who has gone public. The shares you own will either go up or down in value and will continue to fluctuate for as long as they exist. The idea is to sell your shares while they are high in value, but you can make a loss if a company fails or if you hold out for too long. If you get involved in the stock market you need to do one of two things; the first is to become immersed in the stock world, and the second is to hire someone you trust to do it for you.
Buying property is a really good investment. If you are buying a house to live in, then any improvements you make over your time there will be an investment for when you eventually sell. When selling any property make sure you are selling at the right moment – the real estate market fluctuates between being better for the buyer and being better for the seller. Keep an eye on the market and time it right. You can also go into property investment by buying to rent. This way you see a return on your money sooner and, over time, you can even make more money than the property is worth. And, in the end, you can again sell for a profit.
Art investment can bring in major money. But, as with any investments in material collections, it takes time to come to fruition, and you need to know what you are buying in the first place. You might discover the next Pablo Picasso, but remember that Picasso’s work was never worth anything until after he died. Art is particular and down to personal preference, so always get advice if you don’t know enough about the industry to make an educated decision. Also, you need to make sure you are buying the real thing. Don’t buy art online, and only buy at an auction if you are positive that it’s the original, not a replica.
Wine is another material thing that can take years before it becomes profitable – purely because if you are buying an old bottle of fine wine, you are likely to be paying cost price, and so will have to wait for a few more years before that price tag increases. Collecting wine is a practiced art – you need to know your region’s, your vineyards, your types of wine, and your grape years. There’s no point buying the best English White from 2012, as the grape harvest that year was far below par – in all fairness, most English vineyards scraped their entire harvests that year so there shouldn’t be any 2012’s floating around. Do the research, become familiar with the way wine is made, and how to best look after the bottles you have acquired. You don’t want to buy a Merlot for $500 just to sit it upright next to the window – you’ll spoil the wine and then no one will buy it.
Gold is a hot investment at the moment and has been growing since 2007. The gold market has its own rules and regulations, and it is always worth getting acquainted with them before you try to break into the gold market. Gold miners have failed over the years to match the rising demand for gold jewelry, pushing the price of gold steadily higher. Buying gold, or investing in gold shares, can yield a nice profit.