Money has become the most important need to sustain. From the very early ages to the modern era. Money has always acted as the sole binding power behind every action.
The world economies have been built and decided on the basis of it. It has changed the thought pattern of humans. We always look forward to sources that can earn us more money and profit at the end. We search the ways through which we can save our hard earned money. Many of us want to get maximum profitfrom our efforts put forth. One of the best ways to save money and get the maximum output is " Investment". Before we discuss the modes of investment. It is very important to get into the anatomy of this word. What basically investment is? How is it so significant? All these questions have one answer and that is " Profit". Investment basically means using your money into a specific project or idea that you think might be profitable for you later. But investments are not always profitable. They are always done on the basis of a probability present. Firstly, you look for an idea that you think might be helpful in giving you maximum output in a shorter period of time. There is always a high risk involved in investments. But taking risk is worth it only if you work out in a sharp way. They are always going to give you the profit you desire if you will be a bit more active. Many huge businesses and brands have this ideology behind their operation. They always look for the best time and sources to invest within. As a business expert, I have come across many incidents where the people invested a huge amount. But they did not get what they desired at the end. Not only this, but many had lost their initial amount too. In some cases, many had earned a very few profit in a long time span. This led me to consider the issues behind the right kind of investments. I studied the business strategy of many top leading brands. I found one reason lying underneath their success. It was nothing but the right kind of investment at the right time. But what is going to be a right kind of investment? Well, it depends upon your mode of investment. What you think is going to get you the most profit. But looking at the right kind of source is not enough. You have to look for the money in hand too. Many people often complain that they don't earn a substantial amount of profit at the end. What they don't realize is their amount being invested in a project. Though, I understand that many of us want to get more profit than the amount we are going to invest. But is it always going to work that way? The answer is a sharp "no" You have to think of many factors whenever you are going to invest. Only going for the profit and time span won't be enough.
Talking about the profit source in a very short time, many of us think about the stock market. Investing in stocks has always remained a very dominant investment mode. As we all think that it is going to provide us with the maximum kind of profit we want. The stocks usually assure you 10% profit or return at the end. But, many of the times, it is not an absolute statement. It is risky in terms of both the time span and your amount. Because many factors collectively decide a profitable stock ratio. At the time of deteriorating economies, it becomes considerably difficult to look for the standard profit ratio. The problem does not end here only. The main problem is the risk of losing your initial amount too. What if all the amount gets in vain? This risk has made the stock market a dangerous place to invest in. Now the question arises, what are some other modes of safe investments ensuring the security of your money? The answer is there are some other alternatives to it. These alternatives though might not be as quick as stock market investments in their mode of action. But still you can rely upon them for the security of your money invested.
The U.S government has devised many steps for safe investments. They ensure full security of the money being invested. There are various ways through which you can directly become a part of their investment modes. The easiest among which are Treasury Bonds. These are considered very safe and profitable. Not only the Treasury saving bondsbut alongside several bills and notes are also there. Having an investment in the treasury is quite simple. You purchase different investments as per your demands. If you are willing to invest in saving bonds, you are required to purchase them for $25. If you want to purchase notes and bills alongside bonds, this investment is going to cost you $100. The maturity period of these security investments is about 30 days.
Once you become a part of "secure investments" of treasury. There is complete profit in terms of safety. Because of many reasons. U.S Treasury itself assures the safety of investors. In case of any mishap, it repays the investors by adopting various steps. It can either sell more securities, or can print more notes. As the U.S economy is one of the top built economies of the world. So, international investments are also a part of it. If you are into security, go for buying securities within the treasury. It allows you to buy several securities on zero interest rates. They are called zero-coupon bonds. Rest, the interest ratesare there with the securities. Though, discounts are also available on the purchases. Many of the interests are paid by the government at the end of the maturity date. This is not the only benefit, but, you can also sell out the securities you buy, if you find a market good enough. This needs to be done just before the end of maturity period. The only drawback associated with it is the high interest-rates coming along the securities. This is because of the economic downfall due to high unemployment and inflation rates. Yet, it is the safest mode you can think of.
Bank saving accounts are the easiest and safest way to secure your money at one place. All you need is just an access to the trusted bank. You can open up a saving account in particular. This can be done both online and offline i-e you can either open an account on phone or go to the bank in person. Opening up a saving account is advantageous because the banks pay up high interest rates annually thus helping you in earning your desired profit. Secured by Federal Deposit Insurance Corporation. It comes with many advantages. One of them is security of the money being invested as FDIC manages to pay you back in case of any mishap. It also ensures saving upto $25,000. The easy access to your saved money also makes it more desirable. You can save and deposit money all the time throughout an entire year. Besides, in case of any emergency, you can get your money instantly. Though, the economic crisis is also going to impact the interest rates sometimes. You can notice fluctuations in them. Rest, it is a safe mode to rely upon.
Though not secured by FDIC or U.S Treasury "full faith policy" but for short term investments Money Market Mutual Funds can be of great help. It gives you two advantages. First, you can earn high returns. Because of the presence of experienced researchers, traders and business analytics you can expect to earn more. Secondly, this short-term investment provides you with the opportunity to take your money any time you want. So, if you are into short-term investments, it can be a great option for you.
Certificates of deposits (CDs) are the safest way to secure a maximum amount of money. You can start your investment from as little as $500 to $1000. You will be paid constant interest rates throughout the maturity period. Though, the maturity period is quite longer ranging from some 6 month periods to 10 years. They are very secure. Associated with FDIC and National Credit Union Share Insurance Fund (NCUSIF), it works in the same way. You are allowed to save upto $25,000 and can keep your deposits in many banks. The slight difference lies in the higher interest rates. It pays you higher interest rates than that of banks. Even if the interest rate falls, still there is this surity of providing you with the one which was ensured at the time of opening up the CD. Whenever you are about to purchase a CD, always look for Credit Unionsbecause they provide you with a higher interest rate.
One best way to invest through CD is CD laddering. This is a process by which you split up your invested amount into different certificates of deposits. This could be particularly helpful if you need money from one CD. You can withdraw that. Meanwhile, your money grows in the rest of the CDs. You need to be very careful while purchasing a CD. Because if its callable, the bank may call and sell it any time irrespective of the maturity date. This is going to benefit the bank. Because, they can sell it at a higher interest rate. Later, though you receive the amount. But, it can be with much lower paid interest rates than that of the bank. Callable CDsare not desirable for this purpose. Though, this type of investment is highly recommended.
With these mediums, you can get full satisfaction of a perfect secure saving.