Practically everyone we know today believes that they need to make more money. And if you ask them how they intend on doing this, very few have a specific answer outside of robbing a convenience store. In all seriousness, increasing our incomes goes right along with our being able to meet our life objectives that include being prepared for emergencies, protecting and providing for our families, and living a full and rewarding life.
Because money is such an important asset for everyone to have, there are many options for trying to make as much of it as possible. The challenge is that most of these options either require intense years-long training, lots of capital to get started, or some specialized natural skill that very few have.
Outside of these roads, many of the remaining options are risky or inconsistent. There are however some things that people do regularly that lead to more money in their bank accounts. We have focused on one area in particular that can lead to great wealth or incremental income depending on how much time and effort you put into it.
The stocks and bonds markets have paid out more money to investors this past decade than any other investment. They can be entered with small amounts of capital and with time, patience and a little luck, you can do extremely well financially with them.
Of the three bonds are the safest investments. Federal and state governments take out loans when they want to do government financed projects like bridges, sewer systems and power plants. They sell these loans as bonds to investors who are paid a fixed interest rate for holding them a pre-determined period of time. When the period has passed an investor can cash in the bond and receive their investment back. These bonds can also often be sold before they mature to other investors. Bonds are so safe because a government would have to default for you to not receive your payments and principal back. In terms of State or city bonds this rarely happens and in terms of the US federal government, it has never happened. Bonds, because they are rock solid secure do not pay high interest, so people looking for steady and sure income are the ones most attracted to them.
Stocks are a different animal than bonds. Here you have the option of buying equity in public companies whose shares are traded on an exchange. In the US these include the Dow Jones and the Nasdaq stock exchanges. Stocks are notoriously difficult to predict investments. There have been times when the markets have fallen nearly half and other times like the current period we are in, where the market is on an extended bull run, increasing its value by more than 20%. When investing in stocks, you need to play it safe and do your homework. The highest flying companies also come with the most risk, so caution is advised. However there are companies called Blue Chip which are the companies that have proven to perform over time. These companies have solid long term track records in terms of sales and profitability so people have come to trust them. As a result their values rise steadily over time. Investing in a mutual fund which owns a variety Blue Chip stocks, thereby spreading your risk, is the safest and best way to go.
One strategy for investing in stocks that is recommended by equities expert Jean-Yves Sireau is to purchase stock options which give you the ability to bet with or against a stock. Binary options are the simplest way to participate. You can leverage a large amount of shares for much less money and if you pick right, your percentage return can be as great as if you had owned the stock. Many also use options as a way to hedge their stock purchases.
If you decide on investing in bonds, stocks or options, research how they work in great detail. This way you will know when to buy and when to sell, which is the key to making money here.