Best Way To Invest Money Without Much Outlay is in These Four Musketeers
Best way to invest money in this day and age is first to study the mistakes that some investors make like the ones who trusted Madoff and got swindled with so much money it’s unbelievable. You see, Madoff employed a Ponzi scheme where he made people believe they were getting a good return but in reality there were red flags that were left unheeded.
Here are the four mistakes the Madoff investors made while the best way to invest money is down below:
They didn’t ask tough questions because they believed what their friend told them that it was good. This is something one should not take for granted. You can’t assume for instance that your friend has already asked those questions.
Don’t believe everything you hear from people who are good actors like Madoff. He played down his business making it appear as if it was exclusive, motivating people to jump into the band wagon. Again, making assumption that you will get what he says is dead wrong.
The investors did not pay attention to their investments. They were supposed to read the statements and ask questions if there is anything that are not easy to understand. Again, just assuming that there are accountants keeping Madoff’s files clean is a big no, no. You will have to do your own share of monitoring your investments.
Giving up on one’s financial responsibility is another one that has to be avoided at all cost. Although you have a so-called advisor, don’t let up on your own duty to keep watch of your investments because as soon as they go down, your advisor may be nowhere to be found. In other words, do your homework; don’t rely only on your advisor.
Knowing all those mistakes we will be able to avoid them by being prudent as to who to trust. Make sure you check out in detail the person you want to trust your money with. As has been said, before you start investing, try to lower your debt as well. After this the best way to invest money is down below.
Let’s deal with how to deal with debt as this is the best way to invest money. So how do we do this? I really like to invest now, you say? Relax, we have to take it one step at a time. Before we can make the money work for us by investing, we will have to see how to get rid of the debt first. Here’s how:
First, have a family budget, ensuring that no one in the family can go over the budget.
Stop using the credit cards. Keep one or two for emergency purposes. And emergency does not mean a new dress for so and so’s party.
Any money amount of money over the budget should be put aside to pay for the debt starting with the one that charges high interest. Others beg to differ and start paying off the smallest amount as this gives one a psychological boost. It does not matter which road to take on this matter.
Only after getting debt free should we entertain thoughts of best way to invest money. If you want to hasten the paying off debt process, you may want to consider adding more income. There are businesses you can start at home while keeping your regular job.
Here's the Best Way to Invest Money
I have one that started as a hobby and ended up as a small business. But you have to work hard at this. There is no such thing as get rich quick anyway. Just think of a real store on the avenue That is hard work and entails more money up front. Now let’s see what these ones are what I am alluding to and later on we’ll continue discussing each one:
Do you have a passion on any given topic? Then online affiliate marketing based on your passion may be the way to go.
If you love auction, you can start with an online auction business.
Will you be interested in buying and renting out real state?
Does your passion lie on creating ebooks or products like videos, seminars, and audios?
There you are. Those four businesses are well thought-of and do not require special skills that are not within anyone’s risk who is willing to work hard. We will have to study each one later on before diving in.
By: Evelyn Guzman
Best Way to Invest Money is to Make Them Grow With Your Children
Another best way to invest money, if you are in the stock market, is to make the asset allocation based on your child's age. When he is 8 or less, 60 to 95% of the money can be in stocks. Keep the investment simple like putting the money in mutual funds that have good track record.
When the child is between 9 and 13 years old, the investments should be more conservative. You can move the money into money market and short term bonds. When the bond goes over $10,000 you can buy short-term Treasury notes directly from the US treasury where you do not have to pay management fees.
Don't forget this though: Put Your Money Where the Cash Is
While it is true that the best way to invest is to have a diversified portfolio, cash, I believe plays an important part in the financial planning. Why, you ask? Well when the stock market goes on a roller coaster ride, cash provides a cushion to make the turbulent ride more comfortable.
1. Cash can help us meet the opportunity that comes along. When something goes on a bargain, we can then swoop in and take advantage of it.
2. Cash is a saving tool. When the roof goes leaking on us or the car breaks down we can use our emergency cash to meet these challenges head on instead of having to pay double digit interest to some credit card company.
3. Cash can help us rebalance the portfolio. It will allow us to tweak our holdings and put more money where it will earn more without being forced to sell some assets.
4. Cash still provides a return when the market is down.
Here's another powerful tool any internet marketing can't live without: