When you get an extra income such as the bonus payment, savings fund, or a work bonus the first question that arises is “How to invest money?
There are many answers to this question, which depending on the needs and financial situation that is had at that time, are more convenient some than others.
Investing the money received can be done in order to have an economic support to face any future eventuality, or take advantage of any opportunity that may arise, which is why this investment must leave attractive returns that not only guarantee that the capital does not lose its purchasing value, but over time increase its value.
One of the first options depends on the degree of indebtedness you have. The dedication of the capital to the payment of debts is one of the best ways to invest it either for mortgage payment, credit card settlement, or cover some other debt that is counted.
The interest rate paid for a loan is much higher than any yield interest rate. Reducing the amount of the debts becomes a greater amount of profits that can be had in the long run, if a considerable amount is received, it is very convenient to dedicate a large part of that capital to the maintenance of the debts, which in this case it is the best alternative that can be done.
For the case in which there are no debts there are several ways to invest money between them is the payment of insurance. Life insurance, car insurance, school insurance and major medical expenses are an option that pays off your long-term dividends.
Real estate investments are usually long-term, since property is expected to increase in value over time. If the objective is the sale of the property, it is always possible to extract more from it by renting it, so that the sale price reaches the values that are desired to sell it.
Real estate is a safe idea because it is difficult to lower the price, however this can happen; this type of investment has the advantage of being able to find a place to buy the real estate that guarantees the surplus value of the property.
Unlike other instruments, managing real estate is relatively simple, if they are leased their administration is to collect the rent and monitor that tenants keep the property in good condition.
For the sale of real estate it is necessary to know the real gain, that is, not only take into account the purchase value against the sale value, but update the purchase value with inflation to determine the real gain in the operation.
Another advantage offered by real estate is that you do not need great technical knowledge to be able to do it, just by having some knowledge about what are the causes of a property raising or lowering its price and be vigilant to sell when these factors begin to notice.
For this type of investment, it is necessary to have sufficient capital to make the cash purchase without recourse to any type of financing, since otherwise more funds will be invested than could be recovered later.
Own business is probably one of the best ways to make a profit, since in this way financial and labor independence is achieved.
Having a business of your own is not working less, it is often the opposite, lifting it can mean many hours of work as well as personal and family sacrifice, but in the long run it can bring the expected returns.
One of the requirements to invest in your own business is to be one in which an activity is carried out that is completely pleasing, you should not invest in a company that offers a job that you do not want to do.
Setting up a business is not an easy task; you must think carefully and see the feasibility of it being profitable. In addition, you must be aware that the amount invested will not be able to be seen either in the short or medium term, since for a business to start generating profits it may be necessary to spend a few months. That is why it is necessary to have a business plan that indicates the steps to follow to create a successful company.
Following these simple tips will be possible to invest in such a way that it does not get lost and generates good profits.