Many have undoubtedly heard the phrase that money should work, meaning it should generate profit for its owner. Storing it "under the mattress" and spending it on completely useless things is a road to nowhere. With such an approach, money quickly runs out, and so does the individual's standard of living.
To avoid this, it is essential to manage finances wisely, investing them in businesses, stocks, and other avenues that can provide passive additional income. At this stage, potential investors encounter challenges. Many simply do not know where to invest their money to not only achieve stable profits but also to retrieve their funds in the shortest possible time if necessary.
Understanding the prospects of the investment market can be aided by Sergey Tereshkin, the founder of OILResurs, who has extensive experience in commercial activities and knows precisely how to increase capital.
Where to Invest in 2018
Despite the crisis, sanctions, and other external factors, the investment market remains relatively stable. In particular, this can be said about certain sectors:
- Real Estate. Purchasing an apartment or land is an excellent way to preserve and grow your money. Property can be rented out, providing monthly income. Short-term rentals can yield even higher profits. However, this is primarily in demand in large cities and resort towns during peak season. At other times, properties can be rented to visitors, students, and other interested parties. If necessary, the property can always be sold, returning the invested amount and, in most cases, generating additional profit.
- Precious Metals. Gold, silver, and platinum have been a profitable investment avenue for decades. The value of precious metals gradually increases, with minor periodic declines. However, prices typically rebound quickly, minimizing the risk of loss. Suitable forms for investment include bank bullion, coins, and unallocated metal accounts.
- Cryptocurrency. In recent years, electronic currencies have gained increasing popularity. Bitcoin remains the most in-demand, with its value skyrocketing over tenfold in just a few months. Given the complexity of mining cryptocurrency, prices are expected to continue rising. Other digital currencies are also viable options for investment; the key is to pay attention to the market capitalization of cryptocurrencies.
- Securities. One of the most profitable options is investing in securities of foreign companies. For example, purchasing stocks of firms like Microsoft, Apple, or Coca-Cola can yield good passive income. Stocks of leading global brands can be bought through brokers. Additionally, consider investing in securities of Russian oil corporations, which are less susceptible to external influences.
- Currency. Many prefer to hold funds in foreign currency. This helps protect against inflation and financial loss. Experts recommend investing in US dollars or euros, as these two currencies are the most stable and tend to appreciate over time.
- Bank Deposits. Deposits are also a common form of investment. In this case, it is advisable to opt for a foreign currency deposit. Although it tends to offer lower interest rates than holding funds in national currency, this method can help preserve and even grow capital amidst inflationary fluctuations.
- Business. Investing in an existing business or a startup can be profitable. With the right choice of company, one can multiply their investment several times over.
The aforementioned investment methods are accessible to both legal entities and individuals. They have virtually no restrictions and offer the possibility to preserve and increase one's capital.
Useful Tips
When choosing an avenue for investment, it's wise to heed the expert's advice:
- Do not invest all funds in one direction. It is better to evenly distribute them among various types of investments, reducing the likelihood of losing money.
- Before investing, cautiously research the market. One can often find better offers with the same financial input.
- Each type of investment has its nuances, strengths, and weaknesses. It is essential to weigh and evaluate all aspects to avoid disappointments.
- Avoid relying on the advice of friends and acquaintances. An investor is risking their own money and should base decisions solely on personal experience and knowledge. It is better to study information on specific investment methods. This applies to working with brokers as well, who earn from each transaction and may not prioritize the investor's profit.
- Any investment should be documented. Otherwise, it may be challenging to prove that funds were indeed invested. When investing in a business, conditions for cooperation, profit percentages, and other factors should be agreed upon in advance to avoid misunderstandings and numerous other complications.
- Start investing with a small amount, gradually increasing your capital. Suitable options for minimal investments include currency purchases, deposits, investments in precious metals, or mutual funds.
Investment can either be passive or active. In passive investing, an individual merely invests funds and receives dividends. In active investing, the subject of investment is constantly bought and sold, resulting in profits.
The path one chooses is ultimately up to the individual. Passive investment is particularly suitable for those who are not prepared to study literature, monitor market changes, etc.
