Investment strategies for high return profitable investment with money management techniques
Wise and timely investments are undoubtedly the key to great financial wealth. With the right kind of information, the right kind of financial planning and the right kind if professional advice, our money can really work wonders for us.
There is no such thing as investment excellence since there is more often than not a certain level of risk that goes with just about all types of investment. Investing wisely will result in highly favorable returns while poor investment decisions will bring about great losses – it doesn't take a genius to figure that out!
Saving money does not expose one to any kind of risk and if it did in any way, it would be in the most unlikely of circumstances. What is key when one is thinking about making investments is to simply weigh the calculated risk alongside the anticipated returns/profit. Ultimately, the amount of money that you have available in terms of your earnings (or salary in most cases), is a determinant of how great or small one's investment will be.
Here's a technique commonly used in money management; since there are only 3 things one can reasonably do with money and they are namely: Spend, Save and Invest. It tells us how to distribute funds for perfect money management or ratio of investment and savings for an individual. It is therefore advisable to allocate a third (1/3) of one's funds to each of these i.e. spend 1/3 of your money, save 1/3 of your money and invest 1/3 of your money.
Spending money is, of course, inevitable and most people certainly don't have any problem doing this. Self-control inadvertently becomes a necessity especially if we don't want to go broke too soon! In order to spend, save and invest as best as we can, we would need to draw up a financial plan. We can never really hope to invest our money wisely or manage it properly without making a financial plan. We would also need to decide what specific assets we would like to invest our money in and how much exactly to allocate to each asset.What should be financial goals for high return profitable investment
Firstly, you will need to make a list of your goals i.e. what you aim to achieve by investing. There is also time-factor to consider. By this, I mean: do you want to invest your money short-term or long-term? You must already have in mind a specific level of return/profit you expect to realize from the money you have invested over a specific period of time. You need to know for how long you can actually keep your hands off your invested funds in relation to how many returns you intend to realize within that period of time.
Should you decide to invest for the short-term, you are going to want to therefore invest your funds in low-risk ventures while your long-term investments will definitely leave you open to a higher level of risk.Where to invest money for high profits/ returns
With so many different classes of assets to choose from, you should never make the mistake of investing all your money in just one asset class or market as the case may be. Natural resources, stocks, bonds, commodities, savings and real estate are some of the most popular investment choices. You would need to spread out your funds wisely and I would strongly suggest your consulting an investment expert in order for you to do this successfully.
A great way for you to invest your money is through mutual funds. These are a collection of stocks and bonds that is expertly managed by financial experts. It is also the best way for you to drastically reduce your chances of losing your money.Deposit money in bank
Opening a savings account in a bank and owning Certificates of Deposit(s) (CDs) may not accrue much interest but it's sure better than spending your money too quickly and losing it altogether! A Certificate of Deposit allows you to lend money to a bank for a certain period of time, six (6) months or a year. After this time has expired, the bank gets to pay you your money back with interest. Always choose a bank that offers very good interest rates on CDs.
Food for thought:
In recent times, there is the fear of investing that creeps up in everyone's mind due to the economy and the global recession that the world has already experienced. Nonetheless, the markets will always inevitably recover. The longer the period of investment, the more profit there is to realize.