The most stable form of investment is the banking system. If you bank your money with a reputable bank, not only are you resting assured that your money is safe, but the bank virtually pays you to keep your money. It gives you a return on investment. However, this return is not considered to be very high and one would require a considerable sum of money in the bank in order to be making a healthy return on investment. Nevertheless, banking your money is a sure and stable way of making it work for you. And that brings us to:
Making your money work for you
People with a lot of money, or people with a moderate sum of money to “play with” often find themselves at their wit’s end as to what to do with that money. Putting it in the bank is good, but for some, with the bank’s slow annual return, it’s just not good enough. And a lack of vision, expertise, skill and “business sense” often lead people to compete instead of innovate. That is, put one cotton store next to another cotton store. Instead of creating a business that relies on the success of all other existing businesses, many “investors” or “business people” often seek to drown out an existing business in order to “take over” the market. This certainly is neither good nor ethical business sense, but not all people are gifted with the same financially creative intellect.
Individuals and professionals whose “upper limit financial potential” is “capped” may look for ways to invest their money for a return on investment, or an “auto pilot” income stream – money which keeps coming in even when they take a holiday. These may include government employees and the “working middle class”. Some people even indulge in practices that are virtual gambles and think of it is investment, and the stock market and Forex Trading are good examples of “virtual gambling”.
Possible forms of investment
Gold – A person may invest in gold by purchasing it and keeping it stored in a safe location. He or she may sell it at a later date when the price increases or at a location where the demand is greater and the price higher, thus making a profit, or “return on investment”.
Dry Goods – A person may invest in dry goods such as soap, shampoo and perfume. He or she may sell it at a location where the demand is greater and the price is higher. The goods may be resold slowly over time in a retail environment, or in bulk in a ‘wholesale transaction.’
Related: From manufacturing to consumer: the stages of business.
Land – A person may purchase land as a form of investment. Land is often perceived as one of the best forms of investment since land tend to increase in value year by year. On top of that, titled or transported land is a preferred form of collateral when it comes to taking loans from a bank. An individual could purchase a land for X dollars and also take a loan for X dollars from the bank, using the land as collateral or security.
Real Estate – A person may invest in real estate by purchasing it at a reduced or bargain price and later sell it at a higher price. In these cases investment strategies such as adding value through renovation and building additional assets such as a water well or better fence may skyrocket the investment potential.
Related: Items which make big business.
Investment Firms – People may also invest with investment firms which give investors a return on investment. All the person needs to do is give his or her money to the company, and the company uses it to fund businesses which produce a return on investment for the owners as well as the investors. There are many fraudulent investment companies which deprive people of their money, but there are also many genuine ones which honor their commitments as well.
Discovering Talent – Some business people invest their money in human resources: talented individuals such as singers, artists, actors and athletes. Through a management system, these investors sometimes make a very high return on investment.
Related: The most reputable investment companies.
Related: Why I choose to stay away from the stock market.