Investing For Beginners:

Generally speaking, there are four ways to make money.

Working for a company (job)

Freelancing (working independently)

Starting a business

Investing

Making Money Through Investment

A job can give you a good income and also financial security, but it does not allow you to build a fortune. It is difficult to build a stable income source through freelancing. Starting a business will allow you to make a lot of money but you will have to work really hard to build the business.

Investing means you invest money in various companies, businesses, markets, etc., and earn profits from the investment. If you want to make money from investing, you can start investing in

Share market

Mutual funds

Real estate

Startups

Businesses

Companies

Cryptocurrencies

Forex

The options are unlimited. However, what is the best way to profit from an investment?

It depends on what options are available to you how much you can invest, etc.

For example, if your country allows you, you can buy USD, Euro, Pound Sterling, Yen, Yuan, etc., and hold until the value of these currencies appreciate. You can then sell these foreign currencies to make a profit.  You can profit from foreign currencies when the value of your country’s currency depreciates compared to the USD. You profit from foreign currencies when the economy of your country fails.

Investing in a Start-up

Financing a start-up can be really risky, however, if the start-up becomes successful, you also make a lot of money. When you invest in a start-up, you will have ownership of the equity and when the start-up succeeds, you can either sell your equity or continue to earn profits on investment. In case the start-up is your own company, you have two options with your start-up if it becomes successful, you can either sell to another company or individual or get more financing to build it into a big business. Selling to another company is a common practice. Youtube, google's one the most successful products was not actually created by Google, Google bought it from another company. Whatsapp and Instagram are actually not facebook's products, Facebook bought these companies from other individuals. If you manage to build a successful business, you can sell it for a higher price, or continue to work in the business. Netflix is currently the biggest streaming service, however, the company was once at a loss and tried to sell itself to Blockbuster. If Blockbuster had bought the company, the creators would have made 50 million US dollars, but BLockbuster refused and today Netflix is a multibillion-dollar company.

How to Grow Yout Net Worth Through Investment

When you save money on interest-bearing accounts you might be able to profit just about 5-10 percent, however, in order to grow your money, you need to invest. Investment is the only way you can build your net worth. However, investment is not for everyone, and investment does not give you a guaranteed return. For example, you invested $1000 to buy stocks from a certain company and a year later the company filed for bankruptcy. Your $1000 investment will be zero in value. Well, this is a rare case scenario, however, losing in investment is very common, for example, the value of your shares might go down and your $1000 might become $500.

In order to invest, you need money. Unless you have inherited a lot of money from your parents or sold your assets for cash, how do you suppose to make an investment? Before you can invest, you need to start saving. In order to save, you need a regular income. Even when you have a regular income source, you need to save money for many months, or possibly for years, before you can build funds for investment. Therefore, the general rule of investment is to start saving. You need to save money in interest-bearing bank accounts so that your funds start growing and one day you can use the money to invest. Let's say you make $3000 per month and after paying your bills, paying outstanding loans, buying supplies, you have $100 left on your hands. You need to save for 10 months so that you have $1000, which you can use for investment. When it comes to investment, $1000 is not a big amount, you can not even buy 2 Tesla shares. But this is definitely a good start. You need to continue to save money and build your investment funds. If you are patient enough, you will have a sizeable investment in a few years.

First published on Trendri, in the author's name