Ways to Invest money

[PerDev]

What do you think, What are the effective ways to invest money ?

Real estate, Stock market, bank saving, lending to people or spend on self improvement - like books, training, getting degrees etc..

Please suggest?

[Gene]

Originally Posted by PerDev

What do you think, What are the effective ways to invest money ?

Real estate, Stock market, bank saving, lending to people or spend on self improvement - like books, training, getting degrees etc..

Please suggest?

Most of my investments are in real estate. It is in agricultural real estate and I buy for the long term rather than quick profit. I purchased my first 20 acres when I was 13 and from money I earned and a small inheritance and still own the property.

This kind of property has cycles as does most forms of investment. It has been a decent investment for me.

[jimbos123456]

Real estate is going to tank the next couple of years and drop over 50%. Just buy real estate when it is nice and cheap later on. Bank saving is good only when it is done in foreign currency accounts, or foreign currency bonds at the moment due to inflation. The US dollar is basically toast for the next couple of years, perhaps even decades. I think you should stay in foreign currency, because it's simple and safe. If you get a degree do it debt free otherwise you might end up like the poor suckers graduating with 40k debt during a recession. I think the australian dollar, swiss franc, euro, canadian dollar, and chinese yuan well do well against the dollar.

[mustard76]

Invest in yourself. Invest in your education. E.g. Classes, books, experiences, networking opportunities, online courses.

Then use what you learn to make more money.

[Akasha]

Originally Posted by mustard76

Invest in yourself. Invest in your education. E.g. Classes, books, experiences, networking opportunities, online courses.

Then use what you learn to make more money.

Good idea, mustard76! That's exactly what I'm doing. I'm starting back to school for the first time in 11 years next month. I'm going to be taking classes aimed at Graphic Design which is exactly what I've always wanted to do. I'm tired of hourly jobs that barely pay the bills. I want a career and a job that I will be happy with. Everyone should aim for that. The sky is the limit!

[mustard76]

Originally Posted by Akasha

Good idea, mustard76! That's exactly what I'm doing. I'm starting back to school for the first time in 11 years next month. I'm going to be taking classes aimed at Graphic Design which is exactly what I've always wanted to do. I'm tired of hourly jobs that barely pay the bills. I want a career and a job that I will be happy with. Everyone should aim for that. The sky is the limit!

If you keep that attitude nothing can stop you.

[Key2Wealth]

I think you should invest in your self as well as invest in other passive investment opportunities that will take very little time once you have them up and running.

Have you read the book "The Richest Man in Babylon"?, this book teaches you in a very simple and easy to follow method how you can invest 10% of the money you earn to become Financially Independent.

What ever investment opportunity that you look at be very careful to do your due diligence, you can afford to get a lower retun on your money more easily than you can afford the loss of your principle.

Follow Warren Buffett's two rules of investing
1. Never Lose Money
2. Never forget rule number 1.

I would also suggest that you save 5% of the money you earn and invest this money into your own education, both of these investments will pay you back many times over.

To your Wealth

Lee Stuckey

[dmauder]

Originally Posted by PerDev

What do you think, What are the effective ways to invest money ?

Real estate, Stock market, bank saving, lending to people or spend on self improvement - like books, training, getting degrees etc..

Please suggest?

No brainer -- invest passively in the entire market (ie. indexed investing). Read "The Little Book of Common Sense Investing" or "The Boglehead's Guide to Investing." Simple stuff really, and you don't have to know anything about picking stocks, trying to time the market, which stocks with go up/down, none of that!

Incidentally, I also agree with the advice to invest in yourself via education. Purchasing the above two books would qualify!

Dave

[escapee]

Gold & silver

or

Dividend stock/Blue chip ( may be a good hedge against inflation )

[Orionjoel]

If you want to maintain your initial investment then the bank or fixed interest investment's are the way to go. I am unsure about the US unfortunetly, but in Australia Banks are an absolutly great place to put money that you do not want to lose at the moment. Depending on the amount you have you can get rates up to 8.00% per annum, which is fairly good i think considering that all you have to do is open an account and put the money in.

Without taking on extra risk i do not know of many invesments that return that much, especially when i was reading an article the other day which mentioned that a 10% return could often only be found on high risk investments.

[Brutha]

When you invest in the stock market as lay person it's best to just take an indexed fund. Because most

Without taking on extra risk i do not know of many invesments that return that much, especially when i was reading an article the other day which mentioned that a 10% return could often only be found on high risk investments.

Investing in foreign currency like australian dollar is always higher risk, because you don't know how the currency rates develop.

Investing in education is generally a good idea. It's good to read books but often it doesn't matter that much whether you lend the book from a libary or whether you buy it yourself. It only matter that you read and apply it.

Follow Warren Buffett's two rules of investing
1. Never Lose Money
2. Never forget rule number 1.

Actually betting one rare events and losing money in most transaction can also make you are fortune.
Most people try not to lose money and it much easier emotionally than to choose a strategy where you lose mostly but get a big hit that pays for all the loses.

Be willing to invest time and money into a book or seminar that might not bring you value.
Be willing to take risks.

[hotwired]

Speaking of rule #1, has anyone read and used the techniques and style from "Rule #1 Investing" (something about 15 minutes per day). I just bought it and it is hitting home.