Why shouldn't you invest money? What is investment, why is it needed and why is it so important? Why is it worth investing?

Greetings! Previously, I associated the word “investment” only with large companies or government injections. The imagination pictured skyscrapers, luxurious offices and multimillion-dollar contracts.

In fact, anyone with a more or less regular income can (and should!) invest. Even if it's only 10,000 rubles a month.

I dedicate today's post to those who still think that investments are only available. So, what are investments and why are they needed?

In simple words, investment is when money is spent not “just like that”, but on something that will later bring even more money. Like potatoes that are not eaten, but buried in the ground, so that in six months they can harvest two to three times more.

Agree, each of us is accustomed to a completely different, “consumer” money cycle. I received my salary and spent it on food, clothing and entertainment. I saved up a little and again used it for a vacation, repairs, or a car. I generated a NZ and sooner or later “reset” it for force majeure expenses.

Investors don't think like that at all. For them, money is not the equivalent of a new plasma or iPhone. When receiving rubles or dollars, their first thought is not “where to spend it,” but “where to invest it.”

After all, the same asset can suck money out of family budget. Or, conversely, serve as a source of income. Here are a couple of examples to give you an idea of ​​what I mean:

1. You can buy a garage and keep your car in it. Or you can rent it out or adapt it as a car repair shop?
2. A car serves either as a banal means of transportation and requires money for repairs, refueling and maintenance. Or acts as a source permanent income(taxi, tourist transfer, wedding services, delivery of small goods for your own business)
3. A profile with a thousand friends on Facebook or VKontakte can be used exclusively for pleasant communication and watching videos. Or make money by selling (or recommending) goods and services.

In fact, we can turn everything that surrounds us into a source of income! Even for good money.

And now I want to talk about the negative myths and excuses that I hear every day from friends and acquaintances. Perhaps you still believe in them? :) I’ll try to act as a kind of “myth buster”.

Myths that prevent you from investing

“There is no opportunity to invest now. I’ll start as soon as I have some extra money.”

I hear this phrase literally every day. Some have a small child, some have a mortgage, some are building a house outside the city. All the remaining money goes to current needs. Common situation?

What will change in five, ten or twenty years? When the baby grows up, he will need money for his education, wedding and his own home. If the mortgage closes, the question will arise about more spacious apartment or repair. Construction will be completed country house- somewhere on the warm islands.

As a person gets older, his expenses always increase. When we are young, we spend money on entertainment and education. In adulthood - for children and housing. In old age - for your own health and grandchildren (if of course). And the funny thing is that there is never “extra” money. Even in people with high level income.

The ideal time to start investing is today. These are the words that everyone begins with.

I'll explain why. The amount of capital in the future is influenced by three factors: time, return on assets and the amount of investment. And oddly enough, the amount of funds invested is the least important of the three factors. Paradox: it is much more effective to invest 1,000 rubles a month today than to invest 30,000 rubles in one sum in five years.

Let's take the symbolic 1000 rubles as an example. One thousand at 12% per annum in 30 years turns into almost 30,000 rubles. If you add another 1,000 rubles to the initial amount every year, after 30 years the account will have a little more than 270,000.

And if you add the same amount to a thousand not once a year, but every month, then in thirty years you will have about 3.5 million rubles in your hands. We change the yield from 12% to 18% and end up with... 14.3 million rubles. The difference is impressive!

Let me remind you that we are talking about symbolic amounts of 1000 rubles per month (or year). Answer honestly, can you afford to regularly invest about $15?

“A good job or business is what you need to work on while you have the strength”

Another popular excuse: “Working or owning your own business brings in much more. Why withdraw some of your money to high-risk assets? You need to live here and now!”

Firstly, where is the guarantee that you will earn more and more every year at your job? Or that the business will generate guaranteed income for the rest of your life? Are you sure that you can work just as actively at 40 and 50 years old? ?

In addition, no one forbids us to invest in foreign assets. Russians are actively buying income property in Germany and the Czech Republic, open, invest in ETFs and shares/. If only there was desire, money and minimal knowledge...

Where to begin?

Okay, you convinced me! Where should I start then to become an investor?

Get rid of debt

The first thing you should start with if you have loans is. Pay off all your debts, pick up the scissors and cut all your credit cards. I have already written on this topic more than once, if this point is about you, read it on my blog. This is the most important step on the investor's journey. Never buy anything on credit again, neither household appliances nor... If you can't buy it with cash, you can't afford it.

Form an airbag

The second step you need is one that will help you move towards your goal. How many times have you started saving money and out of luck: either your car breaks down, or it’s a relative’s birthday, or your friend urgently needs to borrow money? Something always happens and you should be prepared for such problems. Never take money from investment portfolio!

Study, study and study again

Now the most important thing. To change your lifestyle you need. Judge for yourself - if you are still not investing and have not come to the conclusion, then you are doing “something” wrong. And this “something” is your vision of the world.

Einstein also said: it is stupid to hope for different results by doing the same thing every time. But this is exactly what many people do. Read more, attend seminars and online webinars. Develop yourself, and I guarantee you that in six months or a year you will not recognize yourself. That's what it is main secret success.

Save regularly

Finally, you started saving money to replenish your... You are focused and full of positive expectations for a prosperous future. At first everything goes easy. You are euphoric: now you are a different person and can proudly bear the name “Investor”. But very little time will pass and the daily routine will begin to drag you down again.

Circumstances will definitely arise in which you will say to yourself, “I can’t postpone it this month, I’ll do it next month.” Remember this point: this is the beginning of the end.

I myself fell into this trap and I know how difficult it will be to get out of it. But there is still a way: always pay yourself first. Save money for investments first, then for everything else. It’s better not to go to a bar with friends or to a beauty salon with a girlfriend this month than to deprive yourself of a prosperous future. You won't forgive yourself for this later.

Go all the way

And the last thing - under no circumstances, never stop for anything, no matter how hard it is for you! Nothing can stop you (except yourself). If it’s hard for you at first, don’t lose heart. Gather your will and just continue on autopilot. Imagine that you are a locomotive. 🙂 The whole cast picks up speed very slowly and hard at first. But if he accelerates, nothing can stop him. Inertia is a great force and it should serve as a tailwind for you and me. Always remember this!

I hope I have convinced you of at least something. Find detailed information on individual assets and compiling an investment portfolio on my blog. Subscribe to updates and share links to the latest posts with your friends on social networks!

Today I want to continue the conversation about private investments and answer 3 key questions that interest everyone who is at least thinking about receiving passive income:

1. Why invest money?

2. When to invest money?

As you know, the investment process is always associated with many risks; inept and illiterate actions can even lead to the complete loss of your investments. However, today, in our country and in our conditions, I cannot name a more promising way to replenish a personal or family budget, and now I will explain why.

Why invest money?

So, many will say: why invest money and take risks if there are other opportunities to earn money? Building a career, earning money through your labor, your talent, etc. Well, first of all, I wouldn’t say that these ways of making money are risk-free. Even a banal one carries a constant risk of dismissal, which means a complete loss of income. And running a business is an even more risky way to make money. By the way, this is a form of active investment, since business always involves some kind of capital investment.

But this is not the most important thing. Let me formulate the main idea that answers the question “why invest money?”:

What is more important and necessary? Undoubtedly, both are important. A person also needs money in order to provide for his current needs - he simply cannot live without it. But if he does not take care of his financial future, the moment he loses the opportunity to earn money in an active way (and this will happen someday), he will simply be left with nothing. Well, or from the state government, which you yourself know is enough for.

Another undeniable advantage in favor of investment:

Labor and time that a person uses to actively earn money - limited resources. And capital, which is the main driving force of investment, is an unlimited resource.

In other words, a person will not be able to work more than he has physical strength, and devote more time to work than he has in the day. These resources cannot grow or increase indefinitely, but capital can. Moreover, the more time it is used, the more it grows.

Now you have an idea of ​​why, when and where to invest money. The decision is yours. In conclusion, I would like to recommend that you use .

Stay with us, develop your financial literacy, learn to use effectively and efficiently personal finance. I remind you that you can always ask questions that interest you in the comments or discuss them on our forum. See you in new publications!

The financial market is inseparable from investing. Receiving income in this market involves investing money in certain assets - stocks, bonds, currency and others financial instruments. That is, makes money from investments. Although the concept of investing is well known to everyone, many still interpret it in their own way. Therefore, if you want to understand in detail what investing is, why it is needed and how to make money from it, read the article to the end.

What is investing and how does it happen?

Investing means investing money in any assets, in other words, objects: BMW shares, a dollar, a neighbor’s business, an apartment with a river view, Arabian horses, scientific development of waste recycling, etc. The goal of such investments is to make a profit in a month, a year, ten years. Not all investments are guaranteed to generate income, so it is important to analyze carefully investment project, to evaluate possible risks and its profitability in principle. Also remember that the greater the potential return, the greater the risk of investing. Conversely, low-risk, stable projects bring in less money.

Investments can be classified from different points of view - time, participation in the process, risk, profitability, liquidity, and so on. Let's consider the most important aspects investment analysis: risk and return.

Types of investments by level of risk and profitability.

• Risk-free, income-free. There is no risk of losing profitability, except in cases of emergency and force majeure. The profit from such investments is minimal or non-existent. As a rule, such investments are aimed at social, environmental, research projects and have nothing to do with direct economic benefits. They also sometimes include government bonds.
• Low risk, low return. The risk level of such an investment is lower than the market average. The income from it is also expected to be below average.
• Medium risk, medium profit. The risk level is approximately equal to the market average. Exactly the same as profitability.
• High risk, high reward. Many times superior average level On the market. It is these investments that allow you to quickly receive high income. However, the chances of losing capital are also high. Therefore, analyze the market carefully before investing in this type of investment.

You can also conditionally divide investments into conservative and aggressive.

Conservative are low- and medium-income investments. These include purchasing bonds, bank deposit, insurance, purchase of real estate, land, gold and other low-profit financial instruments.

Aggressive means opening your own business, buying shares in startups,, participation in (read the link to see what it is), issuing loans privately. Such instruments can quickly bring returns that significantly exceed the market average, but the risk of losing the invested money is also high.

This group also includes moderate investments, which are somewhere between conservative and aggressive.

Investment analysis: what and how to do

Before investing in any asset, it is important to carefully analyze its profitability. In trading, your broker's financial analyst will help you with this. Only after a fundamental consideration of the asset do they decide whether to invest money in it or not.

The type of analysis depends on the asset in which you are going to invest.

If you are investing in real estate, carefully study the area in which it is located; his prospects; environment; facility readiness level; cost of maintenance and so on.

When investing in a currency on Forex, see how its value has changed over the course of recent months, analyze the stability of the economy and the state of entities that can influence its course. Be sure to consult with a consultant, because monitoring the behavior of a particular currency is his daily occupation.

Analyzing the shares of a particular company is also a labor-intensive process. In short, you need to collect data about the areas of interest to you. securities and see their profitability using one of the methods. In this article we will not focus on them; you will study in detail the methods and methods of risk analysis when you take free trading courses with Marret Invest.

“Weighted” approach or passion

Remember, everything related to financial market, requires careful analysis. If you want to play or guess how the exchange rate of currencies or stocks will behave, then it is better to immediately “spend” your money in a casino or lottery. In trading, those who win are those whocopes with emotions.

Listen to the advice of the personal advisor your broker gives you. Nobody gives guarantees in any business. However, in trading you have the opportunity to work with an assistant who is directly interested in your success and with whom you will become a stable, well-coordinated team. As you can see, trading is not only an opportunity to invest and receive passive income. This is also a chance to develop positive character traits.

To minimize risk, it is important to diversify your deposit. That is, do not invest all the money in one business, but divide the capital into several parts and invest in financial instruments with different levels risk. For example, divide a deposit of $1000 into 5 parts and invest in different instruments - stocks, different currency pairs, gold, oil, CFDs, and so on. Even if one of the investments turns out to be unprofitable, the others will certainly generate income and you will still remain in the black. The market has clear investment strategies, the choice of which depends on experience, temperament and capital. You will learn where to invest capital for beginners by taking a free training course. This is also our investment in you, because we believe that you can afford to fly.

Investments are the key to personal wealth and economic stability

In the West, people have long stopped storing money in safes, much less under the mattress. A profitable investment is a guarantee of the safety of money and a source of its increase. The law of thrift works in economics: the more people save money for a “rainy day”, which lies like a dead weight, the faster the economic decline will occur. Therefore, investing improves your personal well-being and grows the economy.

Why time is money

The amount of profit directly depends on the time for which you invest money. This is especially true for investing capital in projects with low and medium risk. That is, when you invest money, do not rush to withdraw profits. Leave her to work for you and see what kind of income your thousand dollars invested will bring in 5 years.

By the way, investing is a great way not only to get additional or main income, but also to save money for a happy, prosperous old age. Remember, there is always a choice: enjoy every day and learn about the world in a new way, or while away your last days on a miserable pension in an old one-room apartment. Start living right now!

Investment is investing money somewhere with the goal of generating income in the future. The very concept of investing 100% reflects the expression “Money should make money!” Those. By investing (investing) money, you make it work and bring you profit (even more money). Accordingly, people who invest money with the aim of making a profit are called investors.

Why is it necessary to invest money?

The answer is simple - to have even more money!!!

And for what?

Firstly, everyone should have a certain amount of money set aside for all kinds of unforeseen situations. This is the so-called “financial airbag”, which allows, if necessary, to withdraw part of the funds during periods of financial instability. This could be illness, job loss, unexpected car repair expenses, etc.

This money should be placed in some highly liquid financial instrument that allows you to quickly receive cash without much difficulty, and at the same time allows you to receive a certain income. A classic example is .

Secondly If you want to become richer in the future, you can't do without investing. And although the process of accumulating wealth is not a quick path, it allows you to achieve very impressive results, allowing you to become financially independent and easily receive passive income that far exceeds yours wages. This will allow you to give up your “favorite” job and do your favorite things whenever you want: traveling, fishing, hunting, and just relaxing at any time. Don't you want to live like this?

Absolutely anyone, with any income level, can achieve this!!!

Investments: goals and means

The investment process itself is characterized by the following parameters:

1. investment purpose
2. investment period
3. investment size
4. return on investment
5. risks

Investment goals

Before you start investing, you need to decide on your goal. Namely, try to answer the question: how much money do you need?

This will be the purpose of investing. A specific amount is needed. The answer “the more the merrier” does not apply. It's the same as asking a weightlifter who wants to win the Olympics, "how much weight do you want to bench to become a champion?" And hear the answer: “The more, the better.”

The goal should be:

Firstly, specific. Those. a certain amount you are aiming for. 1, 2, 5 or 10 million, etc.

secondly, it must be real. You need to soberly assess your capabilities. If you receive 20 thousand rubles a month, and bet your ultimate goal the amount of 20 million dollars, then you are either a great optimist or believe in miracles.

It is advisable to conditionally divide the goal into several, for example a maximum goal and a minimum goal.

Let's say your maximum goal is to buy a house on the beach, a car and a monthly passive income of $5,000.

Minimum goal: to reach an income from your investments equal to your current one, which you receive at work.

Investment term

The period of time after which you plan to achieve your goals. The term is directly affected by the return on investment and the volume of invested funds. The higher these parameters are, the shorter the investment period will be.

Investment size

This total amount money raised and worked to generate income. As a rule, as the amount increases, more opportunities and options for investments appear. Typically, for novice investors this amount is not so large. Therefore, especially important point is stable before investing. For example, every month, after receiving your salary, you invest a certain percentage of your income. Over long periods of time, it is the regularity of your additional investments that is more important than the size of the initial capital.

Profitability and risks of investments

These are two interrelated concepts. The higher the return, the higher the risks will be. And vice versa. A classic example is bank deposits. The yield is almost the lowest among all financial instruments. But the risks of losing funds are practically zero. If we take investments in the economies of developing countries, then we can get a very good return, several times higher than the return on bank deposits. But the risks also increase greatly. The economy of such countries is unstable, and there is a high probability of financial difficulties in the country to lose the lion's share of their capital.

A little more about profitability

Different financial instruments have completely different capital gains over different periods of time. In order to be able to compare them adequately, a parameter such as annual percentage return is used.

How to calculate annual return?

You need to divide the profit as a percentage received for a certain period by this period.

Again, the simplest example is bank deposits. Before opening a deposit, you know in advance what their profitability is. 10% per annum - this means that in a year you will earn 10% of your contribution.

Let's say you invested money in gold. And for 2 years it practically did not change in price. But in the 3rd year it grew by 60%. It turns out that the return on your investment was 60% / 3 years = 20% per annum.

Or you bought shares, say Sberbank, for 70 rubles. And after 3 months their cost soared to 91 rubles. You decide to take profit and sell everything at a high price. It turns out you earned 21 rubles on shares or 30% profit. Not bad! But to understand the efficiency, you need to convert it into annual profitability. Since the investment period was only 3 months or 0.25 years, we get 30% / 0.25 years = 120% per annum.

The investment process is accessible to absolutely anyone. It doesn't matter how much he earns. The sooner he starts, the better results he can achieve. Remember, regular investment and time can make a difference.