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How to invest money?

Are you looking for a way to invest your hard-earned money? Get some tips from real-life investors who’ve made wise decisions.

Clearly write down all your investment goals

When you make payments for high interest debt and build an emergency fund, you must think about the reason you’re investing. You must have a clear idea about the amount of money you want to have. Furthermore, you must also write down the date when you want this money. Investment goals vary vastly from person to person. People invest for building a college fund for their children, a retirement fund for themselves, or simply for re-investment purposes.


Bonds, considered as fixed income, are loans taken by an enterprise or a government. Bonds are paid back with interest. You need to be aware of the par value, coupon rate, and maturity date.

Fixed Deposits (FDs) or Certificates of deposit (CDs)

Offer higher rates of interest than savings bank accounts. These instruments are low-risk but have reduced liquidity. These instruments are ideal for retired people who have a huge capital.


Stocks are normally purchased through brokers. Direct stock purchase plans (DSPs) and Dividend reinvestment plans (DRPs) permit you to buy stocks directly from companies. Not all companies offer DSPs and DRPs. Before investing in stocks, it is essential to learn a bit of technical and fundamental analysis. Technical analysis of a stock helps you in buying the stock at the right time. Fundamental analysis of a stock helps you in knowing whether the stock is worth purchasing.

First make sure you have no debt and enough savings to cover your expenses in short term

6 months is usually a minimum.

Real Estate; best type of investment – Buy low

When you choose to invest in real estate, buying low is absolutely important. Buy a property when it’s “On Sale”. In other words, buy a property when no one else is either willing or able to buy it. Purchase a property in a buyer’s market; i.e., when there are more sellers than buyers.

Read a few books about investing

Invest only when fees and commissions make up less than 2% of the amount you plan to invest

Select your investments

When the amount of money you have for investment is bigger, you certainly have more options. While it is always better to invest money in more than one place at any given point, your investment plans depend hugely on your goals.

Mutual funds

Mutual funds have built-in diversification and low initial purchase amounts. However, they aren’t insured by any government agency and charge an annual management fees.

Gold and Silver

Gold and silver are great instruments for investing money. They can be bought and sold easily.

Real Estate – Hold on to your property investment

Hold on to your investment for a few or several years if necessary. The longer you hold, the better your prospects of making bigger profits.

Real Estate – Sell high for huge profits

Sell your property when the price is considerably higher than when you bought it. Ideally, you should able to generate returns between 50 to 100% in a few years’ time on the investment. Additionally, you must consider investing the profits in a government scheme to reduce the tax burden.

Have a long term and a short term investment plan

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