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6 Intelligent Investing Ideas to Maximize Your Returns

6 Intelligent Investing Ideas to Maximize Your Returns

When you are looking to invest your money, then return on investment (ROI) is a term, you will frequently hear. The objective of investing is to maximize return on the money that you are spending.

People do not like to risk their money. They prefer to go for safe investments. But there is no way of knowing whether the investment is safe or not. One thing that can be done is to note the investment target. It will help in determining the risk that you can afford to take. Here are some of the standard options for safe investments that ensure high return rates.

1. Index funds:

It is considered wise to invest in Index in totality. Investing in an index is smart not just because of high returns but also because of the relative safety of the investment. The level of uncertainty is much less than the individual stocks. It prospers because it has a low collection beta and

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The level of uncertainty is much less than the individual stocks. It prospers because it has a low collection beta and high dividend paying stocks. It makes it an ideal combination of safety with the returns. It is also considered a more direct approach for booking aspirations, and it also limits the exposure to unexpected unstable moves.

2. ETF:

The risk proportion can be reduced or minimized by decreasing the unpredictability from the portfolio. AN Exchange Traded Fund or ETF provides that opportunity. It helps in reduction of risk when you are trying to capitalize on the brighter side of the stock market. As compared to the stocks, it is a better bet of maintaining the ratio of return. It especially helps when the potential of dispersion is narrow, and there is a possibility of any knowledge about an enhancement of the stock. It helps in enjoying the flexibility in trading just like the stocks. They are not like mutual funds, and you do not have to wait for closing of the market and an only base the transaction on a closing rate.

As compared to the stocks, it is a better bet of maintaining the ratio of return. It especially helps when the potential of dispersion is narrow, and there is a possibility of any knowledge about an enhancement of the stock. It helps in enjoying the flexibility in trading just like the stocks. They are not like mutual funds, and you do not have to wait for closing of the market and an only base the transaction on a closing rate.

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3. Certificates of deposits:

The certificates of deposits are also included in safe investment list. It has higher yields as compared to treasuries. You can produce benefit from the changing interest rates trends as well. You can spread out the maturity dates over a period of 3 to 5 years. In this way, not all of your money will be committed to a single rate of interest. If the interest rates increase over two to three years, then you can take advantage of that trend. You can use the pattern to maximize the return potential of your

In this way, not all of your money will be committed to a single rate of interest. If the interest rates increase over two to three years, then you can take advantage of that trend. You can use the pattern to maximize the return potential of your investment for business. It will make up for any possible losses. It will also get rid of any worries about the stagnation of investment at one particular rate.

4. Gold:

Gold has always been considered a safe investment. It is also expected to give high returns. Although the gold prices have gone down a little, they are still able to generate positive returns. There are so many cultures that link gold with high safety value. It is considered an ideal hedge against inflation. It increases the appeal of gold and it acts as a vital key to the investment portfolio. It is an excellent tool for cutting the unpredictability of the market to a large extent.

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There are so many cultures that link gold with high safety value. It is considered an ideal hedge against inflation. It increases the appeal of gold and it acts as a vital key to the investment portfolio. It is an excellent tool for cutting the unpredictability of the market to a large extent.

5. Collectables:

Hobbies and passions can also become safe and source of high generating interest. Collectibles such as paintings, coins, and other antiques are worth a lot of money. The value of these antiques increases with time. They can be auctioned or exhibited. They are a good source of generating income.

6. Bonds:

Debt is one of the most common tools of investment. It is a good option for those who are looking for safe and stable interest rates. The maturity rate of the bonds is less than three years. The return rate of this investment is among the best. The money should be invested in bonds after extensive research.

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Proper analysis of potential losses is essential before investing. Such careful and detailed study helps in minimizing the possible losses. There are various means of investments for a business. They should be monitored carefully so that the best one is chosen. Each genre should be studied in detail so that the risk is kept to a minimum.

Featured photo credit: ndtvimg.com via i.ndtvimg.com

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Published on September 17, 2018

How Being Smart With Your Money Leads to Financial Success

How Being Smart With Your Money Leads to Financial Success

Achieving financial success is not something that just happens. Maybe if you win the lottery or something, but for the average person like you or me, it comes from a series of small steps you take over a long period of time.

With each step, you form a new smart money habit. And with each smart money habit, you build towards financial independence.

So what sort of habits can you form to get on that path? Let’s take a look at smart money habits you can start today to get you closer to a financially independent future.

1. Avoid being “penny wise but pound foolish”

It’s tempting to try saving a couple cents here and there when buying small items. However, that’s not where the real money is saved. You’re putting in extra effort for something that doesn’t move the needle.

You get the most bang when you’re able to cut down on your bigger bills. For example, finding a lower interest rate for your mortgage could save you $50+ per month. And cutting your transportation bill by purchasing a cheaper car or taking public transportation can provide large gains as well.

So, look at your recurring expenses such as housing, transportation, and insurance, and see where there’s wiggle room. It’s a much better use of your time than trying to pinch pennies here and there on smaller purchases.

2. When you want something big, wait

Impulsivity can get you in trouble in most aspects of life. Finances are no different.

It’s human nature to see something and want it right then and there. It starts as a kid in the checkout line at the grocery store, and it continues on through adulthood.

We get an idea in our head of something we want, and it’s hard not to go out and get it right then.

A good example is wanting a new car. Perhaps you’ve had your car for several years. It’s crossed the 100k mile mark. Maybe maintenance is due, and you’re annoyed that you need to replace the timing belt or purchase new tires.

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So, you get the itch.

You start digging around online, and you realize you could trade in your current car for something newer and more exciting… all for a few hundred bucks a month. Then you get obsessed.

Here’s where you have to take a step back.

Your newfound obsession is clouding your judgement. Rather than giving into the impulse, wait it out.

Set a timeframe for yourself. Maybe you come back to the decision three months down the road. See if the obsession lasts.

It might, but often, a funny thing happens. Often, you forget about it. And often, you find that the new car wasn’t a need at all.

The impulse faded. And you just saved yourself a ton of money.

3. Live smaller than you can afford

You finally get that big raise. And you want to celebrate – and why not?

You’ve been looking forward to this forever. And after all, it was all due to your hard work.

That’s fine, splurge a little. However, make it a one-time deal and be done.

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Don’t get caught in the trap that just because you’re now making more money, you should spend more.

Too often, people get more money and feel like they that gives them the means to buy a bigger house, a bigger car… you know the drill. Resist.

The fact is that living smaller than what you can afford is one of the fastest ways to build savings.

But if you constantly upgrade as you begin to make more, then you’ll never get ahead. You’ll just build up more debt along the way and have just as little wiggle room as before.

4. Practice smart grocery shopping

Food… it’s one of the biggest portions of any budget. And if you’re not careful, it can be one of the biggest drains on your wallet.

But luckily, there are a few things you can do to ensure that you stay smart with your money when buying groceries.

Create a grocery budget

Set a strict weekly grocery budget. When you know how much you can spend on groceries, you can then plan your weekly menu around it.

Once you know what all you need, you can go shopping and keep a running tally as you shop to ensure you’re on track.

I tend to do this in my head, rounding for each item. However, writing it down as you go would probably work best for most people.

Make a list… and never deviate

Never go to the grocery store without a list. If you go to the store with a ballpark idea in mind, you don’t have a true ide of what you need.

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You’re not well-researched. You don’t know what the sales are. As a result, you’re going to make decisions on the fly.

These impulse decisions will lead to overspending, which will derail your grocery budget.

Eat before going grocery shopping

It’s also important to eat prior to going to the grocery store. Hunger is a powerful force.

If you’re shopping on an empty stomach, everything is going to look good. In particular, you may find a lot of ready-made, processed snacks will look enticing.

After all, you’re hungry now and that food is easily available. So subconsciously, you may lean towards those items.

Unfortunately, not only are those items typically less healthy, but they’re likely more expensive. You pay for convenience.

However, when you eat prior to shopping, then you’ll shop with a clear mind. Your hunger won’t cloud your judgement, influencing you to make poor decisions like a cartoon devil resting on your shoulder whispering in your ear.

This makes it much easier to stick to your grocery plan.

5. Cancel your gym membership

Now that you’re all set on your food, it’s time to get smart about managing your budget in terms of physical fitness. And let’s begin by avoiding the gym. The gym bill, that is.

The average gym membership costs around $60 per month. That’s $720 a year.

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Yet, two out of three gym memberships go unused. That means two-thirds of people who have a gym membership are literally giving away almost a thousand bucks a year. It’s crazy!

I recommend seeking an alternative. One good alternative is to look into fitness streaming services.

Streaming services allow you to stream hundreds of workouts like Insanity and p90x, right in your own home for around $10-20 a month. That’s $40-50 less a month than the average gym membership.

Of course, then there’s the free option. The internet is full of free workouts that you can do on your own with minimal or no equipment.

For example, there’s the Couch to 5K program, that I personally used a decade ago to ease myself from couch potato to running my first 5K race. If I could do it, anyone could.

Then there are free resources like reddit that have limitless information on workouts. The Fitness subreddit has done all the research for you, populating workout tips and detailed workout routines for anyone to use in their wiki.

There are several routines that require no equipment. And you can join in on the subreddit to become part of the community, making it easier for those seeking comraderie and encouragement in their fitness goals. All for free.

It’s baby steps… And baby steps can start now!

I’ve never met anyone that can’t stand to be a bit smarter with their money. And on the flip side, anyone can get smarter with their money. But remember, it doesn’t happen all at once.

Begin by fighting your impulses. Prepare for the week and be smart at the store. And cut monthly expenses like gym memberships that are overpriced and you probably aren’t getting your money’s worth out of anyway.

The devil is in the details. And the details can change your lifestyle and prep you for a financially independent future.

Featured photo credit: Unsplash via unsplash.com

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