The odds, however increase, if you risk a huge part of your savings as capital for your own business - and the business eventually takes off and makes a killing. This takes huge amounts of hard work and patience, and is not for those who quickly want to be ranked among the wealthy. Most of the time, money or profit is tied up somewhere, and you are not as liquid as you might want to be.
But the most wealthy people have unlocked the secrets to getting the most out of their money. Except for one option, all these options take a lot of time, and quite a bit of money. The chances of failing, however are small, especially since there are plenty of competent advisers who will tell you when the best time is to cash in.
Put your cash to work by investing in a high-yielding money-market time deposit. If you are looking for an option that provides a quick solution to problems of liquidity, then a time deposit is what you need. For entrusting your money under the care of a bank for a fixed period of time, you are given way more interest than any plain savings account can normally bring. In short, your money is the one earning more money for you. Your investment/capital is untouched, and will not be affected by low market rates - but your interest (profit) is that which will fluctuate - in case the value of your currency goes down. For example, a $100,000 time deposit may earn 15% if kept tied up in a bank for at least 30 days. Interest will of course depend on the length of period you keep it under the bank's care. If the value of money goes down. Your principal of $100,000 still remains intact, but you interest of 15% may go down to 13%. Not too bad, because there is no risk of losing your initial investment.
Should you however need to withdraw your investment before the end of the required period, you certainly can, without problems - but you can only get a portion of the 15% interest agreed on. This is really good for emergency situations, because there is no waiting period required.
Pros:
Initial investment remains intact despite variations in the value of money
Easily withdrawals
Returns/profits are quickly earned
Con (one only): Relatively lower chance of multiplying money compared to other options
Invest in Real Estate / Property. Among all the options to create wealth, this would probably yield the most, but it if you want to earn the most out of your investment, you would have to wait the longest. Why? Because one square meter of land that cost $10 back in the 80's may now cost $100 in 2012. In short, your investment multiplies tenfold in a span of 30 years. Think of how much money you made had you invested in 5 acres of land 30 years ago? For as long as you are willing to wait, you end up multiplying your investment so many times over. It is worth mentioning that property/land does not decrease in value, and any fluctuation in the value of money makes you richer. Also, another factor that adds value to your investment is an increase in population. The higher the population, the more the demand for property - to build your home on. Land is finite, and can never be multiplied.
Therefore, there is a limited supply of it, thus making it highly valuable.
Other than land, you can also choose to invest in the purchase of inexpensive houses, fix it up a little, then sell high. A lot of wealthy people got rich this way.
Pros:
High yield
Investment never decreases in value
Very little supply, thus demand is high
Can be left alone for long periods of time with minor maintenance but will still re-sell high in the future
Low-stress. No need to worry about sudden changes in market.
Cons:
Expensive investment
Takes a long time before the investor realizes the biggest profit
Invest in Stocks and bonds. If you have limited time, want to get rich as soon as possible, and have steel nerves, then this is the investment for you. You earn a lot in such a short period of time, but must constantly be on your toes. Market fluctuations become your enemies, and may be so tense-filled as you make a mad dash to dispose of your stocks while the rates are high, and then be always on the lookout for market trends. Knowing and keeping abreast on what stocks are currently selling low, while concurrently keeping in mind if those particular stocks have high potential for gain takes good timing, non-stop research, and sleepless nights. The people who have profited largely on stocks and bonds are highly alert, definitely not lazy, and never complacent. If your market gets hit by something like the Great Depression in the United State during the 20's, then you can easily lose 100% of your investment.
Unless you are a true-blue risk taker, stocks are not advisable for people who do not have a lot of money to lose. Losses may very well leave you poor, but when you have really good assistants (called "brokers") helping you out, they take a load off your chest.
Pros:
High returns
Very short-term. You earn a lot in a short period of time
Easy to invest in
Cons:
Very high risk
Not for the faint-hearted and complacent investor
Needs constant research, and requires 100% awareness of market trends
Subject to all forms of fluctuation in the value of money
It's very tempting to invest all your hard-earned money on a venture that earns tenfold, is low risk, easily retractable and quick, but as we see, each option to create wealth has its own set of pros and cons. Be very wise when choosing, because money is never fun to lose. It's never worth all the money if you're going to lose your peace of mind in the process.
Please remember to see a financial plan expert as this article does not represent any advice that should be taken without seeing a professional.
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Michael Griffiths is the CEO and Founder of Secrets Of A Super Life, providing individuals with personal development strategies to increase their purpose, passion, happiness and life fulfilment. For your free life success pack please visit http://www.mysuperlifetoday.com
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