If you think that your capital is small enough to start investing, you can be wrong. As early as today, you should learn the ways on how to make your money grow to prepare yourself for the future. You can do it either the slow or fast way, just make sure that you’re well-informed with the risks that accompany the type of investment you choose.
In this article, we will explore different ways on how you can increase your capital.
Blue Chips Investment
Blue chips stocks come from reputable and large companies who have an established record of paying dividends, making it a dependable source of earnings. The market valuation of these companies usually exceeds $10 billion and they have the ability to sustain their market’s worth even during a crisis.
Because of the abovementioned characteristics of blue chips, they are known as reliable investment vehicles. However, their annual returns amount to 10%, which is actually slow and small compared to other forms of investments. It is also important to diversify your portfolio and it is advisable to not bulk up your investment into one blue-chip company alone and be overly confident with its performance.
Forex trading is another reliable way of doubling your capital, if you’re gonna do it the smart way. Participating in the forex market, which is the most liquid and fastest in the world, can be a stable source of profit since a lot of financial institutions and entities rely on movements of currencies. Plus, this market is open 24 hours a day, 5 times a week, and you can choose between day trading or night trading, and be a part-time trader – all depending on your lifestyle.
How does one earn in forex trading? The goal of forex trading is to trade one currency versus another, banking on the confidence that its value will increase over time. More specifically, you will sell a currency pair if you believe that its price will depreciate and buy the other if you think that it will have a greater value than the ones you sold.
Did you know that you can also gain profit from your health insurance. Although the purpose of this kind of investment is for your protection in case of health emergencies, the money you’re paying, especially when left untouched after a couple of years, can be actually withdrawn as personal funds. The bigger you pay, the more you’ll gain from it.
Financial advisors would not recommend withdrawing the money you’ve invested until it reaches a certain maturity period. Some companies offer top-up deals where you can increase your contribution for other purposes. This kind of investment, however, requires patience as it will take a long period of time before you can harvest its fruits.
Real Estate Investment
Another investment that has guaranteed returns is real-estate. Although it will not give you on-the-spot cash when you need it, real-estate is still one of the most dependable ways to grow your money especially if the property you acquired is situated in a highly commercialized area. The value of properties is assured to increase each year and this is how real-estate investors earn back their capital.
If you want to earn continuously through your property, you can opt to lease it to interested business owners. Also, you can fix an undervalued property and sell it a higher price in the future. This kind of investment only requires you to be hands-on during the buying and selling process which is ideal for people who have full time professional careers.
When you sell CFDs, you don’t have to possess the underlying asset literally, so you’re speculating on the asset’s (financial instrument) price action. This means you will benefit from rising or declining rates on thousands of worldwide stock markets including indexes, commodities, currencies and more. This offers you potentially greater flexibility to trade.
Trade CFDs increase the purchasing power, enhancing the money and future income of your trade. However, it is necessary to remember that leveraged betting often places you at higher risk, because if the transaction goes against you, risks will be similarly amplified since they will be focused on the maximum valuation of the investment.