One of the most common mistakes for many is having a savings account in which money accumulates, but not making a profit from it. That is, invest that money in the most profitable investments.
you know what they say money cannot stay still but has to move to obtain the maximum profitability of this. But how to do it? And in what? Here we present the investment options that you can carry out.
why invest
When you have some savings, beyond the cushion of money that you have for contingencies, you have to keep in mind that it cannot stay still. Account commissions, maintenance, etc. it will reduce those savings and, instead of earning, you would be losing money.
Therefore, you need to know places to invest. But, above all, because:
- Annual inflation will make your money worth less and less.
- The bank will take money from you for having that money deposited in your account.
To avoid this, you have to find more profitable investments that provide you with a benefit, either annually or for x time. Obviously, some will be safer than others. Do you want to know some?
The most profitable investments you can consider
Whether you have no idea of investing, that you have notions or that you are an expert, this interests you. Because there are always some ideas or practices that can be new and that will help you make your money work for you.
But, first of all, we recommend that you inform yourself as much as possible about it so that you know the risks and benefits and so you make a good decision.
Go for it?
Invest in real estate
One of the first actions that many carry out to invest that money and that also gives a return is real estate.
With real estate we are referring to those houses, dwellings, flats, premises, etc. that can be bought, but not to live in them or put up shops, etc., but to rent them.
For example, imagine that you have enough savings to buy a parking space in the center of Madrid. As you know, parking in Madrid is almost impossible, and even when you do, it costs you money.
So you could rent that space to people who go to the area where it is. For example, nearby office workers. In this way you would be getting monthly money at the expense of something you have bought and that, in the long run, once you cover the expenses, it will only give you benefits.
The same can happen with a flat, a house, a place...
Cars, one of the most profitable current investments
In this case there are two “businesses” that you can consider. One of them may be more expensive, but the other not so much.
Let's go with the expensive. Do you know luxury cars, sports cars...? Surely yes. And surely you have also dreamed of driving one of them. But they are so expensive that you cannot afford them. Or maybe with those savings.
But, of course, you buy the car, you use it and that's it. Why not profit from it?
If you control the market for cars and "dreams" a bit, you may be able to set up a small luxury car rental company.. For weddings, baptisms, communions, special days, summer... or simply to show off.
You would charge an amount of money to rent the car and when you cover the costs you would have benefits from that car.
What the other option? Do the same but with "normal" cars. Bearing in mind that today it costs a lot to maintain a car and more to buy it, some consider renting a car for the days they need it, in such a way that you would be getting an extra and investing the money you have stopped.
Invest in start-up companies
The so-called startups. They are companies that have just been born and that could use extra capital to get ahead. In return you would get a very economic benefit. But to be successful you have to apply it in companies that really succeed. And this is sometimes not always achieved.
Still, you could create one yourself. You just have to think about what you like or what you are good at and go for it. Remember that even while working you can undertake at the same time.
Cryptocurrencies
Let's start from the basis that investing in cryptocurrencies is not easy. It is recommended to have some notions and think things through before making decisions. But we can't hide from you it is one of the most profitable investments today, and even in the future.
More and more governments and countries are paying attention to them. Some have even adapted them as legal currency, so we suspect that it will be one of the businesses of the future. And better start now.
To do? Inform yourself, study and above all go with your head. In this "world" you can earn a lot of money. But also lose everything.
Invest in index funds
Did you know that experts say that it is one of the best and most profitable investments there is? Yes, and you shouldn't let it go.
The Index funds are actually a passive investment, because you hardly have to do anything. In addition, it can be maintained for a long time in such a way that you obtain your benefits and make your savings grow more and more.
Related to this, there is another option that is the robo advisor, which allows you to do nothing since they are the ones in charge of choosing which are the best funds to invest your money. In return you would have to give a commission, but it is usually very low.
In the long term, this is one of the best options to consider. But remember that it is long term.
invest in bonds
Here we are not talking so much about more profitable investments, but about safer ones. As well it works in the long term and you could get around 2% of what you invest. It all depends on the country where you invest and the risk you run with it.
Gold
Gold has always been (and still is) a cost-effective and very useful value. And it is something that has always been there and that can have value over time. So it is another option to consider.
As you can see, there are many more profitable investment options. The decision is not easy to make and you will have to look at many factors. You could even spread those savings across different investments. Everything will be better than keeping the money in your bank and losing part of it over time. Don't you think so?