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10 steps to invest your money for high returns

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How to invest your money for high returns

No doubt, we all want to invest our money in the right place to get high returns. But most times, we do make some heavy mistakes which we end up regretting.

To be perfectly transparent, no investment is 100% safe from all risk. Because of fluctuating markets and a sometimes unpredictable economy, it’s hard to say which single investment is the safest. However, there are some investment categories that are much safer than others and eventually with high returns.

Low-risk investments carry a reasonable expectation that you may break even or incur a small loss. On the flip side, higher-risk investments can offer much better or even high returns. Finding low risk, high yield investments is a tall order.

That’s why we’ve come up with a list of 10 safer ways you can invest your money either online or offline with high returns. That said, no matter where you decide to invest your money, make sure your portfolio is diversified in order to minimize your overall risk. You can also see a list of the right investments to go into in 2020.

There are many investments where you can get good returns, including dividend-paying stocks, real estate and businesses. While these investments can produce high returns, some are much safer than others.

Deciding where and how to invest money to get good returns in 2020 should be based on your short-term and long-term financial goals, timeframe, tolerance to risk, and how much money you currently have in the bank.

These individual factors should make it easier to determine where to safely invest your money while still earning returns that will help you reach your financial goals and build lasting wealth.


See Also: Best investments 2020


How to invest your money for high returns

1. Set ups a budget: This is the most important process when planning to invest your money in expectation for high returns or not; hence, it’s the one that you should begin with. You need to make a budget and stick to it no matter what.

Your budget should be realistic and tailored to your current financial situation. Be intentional about this up to the last penny you want to save.

2. Read and understand finance concepts: Another important step to saving your money for high returns is to re-orientate yourself by removing wrong ideologies or perspectives about savings. Many grew up with poor saving habits which are now a part of them and their everyday life. A simple takeaway will be to restructure your mindset today if you apply this step while making your plans.


See Also: Top 5 Best Cryptocurrencies To Invest Into 2020


3. Your profit is actually not your money: Maybe this is not as Funny as it sounds, but you may also ask, “Is the business, not mine?” Don’t get it twisted, Quite truly, the business is yours, but the sooner you know that there is a difference between your money and your business’ money, the better.

That is why you should allocate a particular amount that serves as your salary, from the business, once you have gained enough revenue. That way, even if you are not doing okay, your business is perfect.

Adding this formula of investment to your investment plans will help you when you business is finally established because if it’s well carried out, you will eventually have high returns from your investment.

4. Track down your spending: We must spend because we all have bills to care for but don’t forget that spending is one of the easiest things you can lose track of, especially since it affords your wants and not so many of your needs. But no matter what, be intentional and be conscious of your spending.

5. Avoid credit payments: This is often the fastest way to get into debt. It covers your immediate cost but adds a minus to your future paycheck. Only make credit purchases, when absolutely necessary.

When you receive your salary ending of the month, just then you will remember you have some debt to pay. It would be hard to get high returns of your investments if you ignore this tip.

6. Know your needs from wants: We all have no choice but to spend money on meeting our basic needs. For wants, however, you can choose to cut them off. Identify, and cut off your wants, to save more today for high returns in the future.

7. Do not take loans when you do not have to: Loans are helpful when one has many payments to make and other financial needs that need to be met. Taking up loans at any time for any reason is a certain way to living a financially unhappy life.

Taking loans won’t actually give you high returns but One should note that every loan you take is equivalent to taking your earnings (salary or business profit) in advance and you will be working through the next months to pay back. On that note, except it is for a profitable need, one should avoid taking loans.


See Also: How Do People actually Make Money on YouTube?


8. Analyze and cut costs: If you pay closer attention to the financial aspect of your life, you would realize that some expenses involved you paying for things that you never needed. Analyze all your regular payments, and trim or remove those that only seem essential, but in reality, are not.

9. Review all insurance policies: Insurance takes its share from your paycheck before it gets to you. Reviewing the payment coverage for all your plans is a good way to cut costs. You might be wasting money or paying a premium for inadequate coverage.

10. Always review expenses: At the end of each month, review your expenses to see the ones that you could have avoided. As such, you can work towards avoiding it later.

Saving money is a conscious effort and not a switch that can be flipped in a second. You have to be intentional about it and set realistic goals with time frames and limits. However, you can only invest the money you have, hence the reason for saving. It is high time you get started.

Reading and knowing how to go about it is not enough. It is important to take action, and the best time to start is now.


See Also: 4 Ways To Create A Perfect Resume


In conclusion

Finding safe investments with high returns is one of the best ways to protect and grow your money to build lasting wealth. You may want to keep most of your money into super safe investments, like high-yield savings accounts, CDs and US Treasury securities. But if you are looking to get better overall returns, start by investing small amounts of money in bonds, dividend-paying stocks, REITs, real estate or P2P lending. That way, you’ll enjoy higher returns offered by lower-risk investments.

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I am a student studying computer science. I'm a passionate blogger that loves reading and writing, business minded with solution to complete financial tips. You love business? Stay tuned to Nairabusiness.com

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