Do you want to be a rich and wealthy individual earning a lot of money doesn't make you rich , but possessing lot of assets make you rich and wealthy.
What is an asset?
Wealth = ASSETS - LIABILITIES
1. You, yourself
As people say "Investment in yourself pays the best result".
Mr waren buffet best investor of world said "The best peice of investment I have done is on myself".
The question arises How can we invest on ourself .
Here are 7 points to invest on yourself.
•READ BOOKS AND BLOGS DAILY
•LEARN MONEY MANAGMENT
•PRACTICE MEDITATION
•IMPOROVE SOCIAL AND COMMUNICATION SKILLS
•GIVE YOURSELF TASK FOR DIALY BASIS.
•TRY TO ESCAPE FROM RAT RACE.
•Learn Various Skills .
2. REAL ESTATE
Real estate is considered as the safest and best way , On an average real-estate give return of 12% to 15%.
There are 2 types of investment in realestate.
•Residential
•Commercial
There are 2 ways to earn money through relaestate.
1. Buy a property hold it for 10 years and sell it. While most of big investors says this is less effective in long run cause it pays one time.
2. Use property to generate rental income .
By doing this you'll earn monthly and for lifetime .
Commercial renting pays 10X as compared to residential.
Advantages of realestate :-
1. Banks gives loan easily.
A bank will not give you loan to but stocks or shares of company , you can easily get loan on a property.
2. It takes almost no or very less money in pocket .
We might think we need too much money to buy a property but That's not the right way many Wise investors Take a loan and buy a property later they rent it on more money than Emi so they don't have to pay much for it .
3. TAX ADVANTAGES
1. Deductions
One of the most basic tax advantages to investing in real estate is the ability to deduct certain expenses relating to an investment property such as a rental, which may include:
- Property tax.
- Property insurance.
- Mortgage interest.
- Property management fees.
- Property repairs, capital improvements, or ongoing maintenance.
- Advertising expenses (like the cost to list a rental or market a property for sale).
Many real estate investors choose to own and invest in real estate with an entity, such as a limited liability company (LLC) or limited partnership (LP). Doing so opens up a number of additional tax deductions relating to the operation of the investment business like:
- Advertising or marketing expenses such as mailers to find off-market leads, business cards, or a sign for your office.
- Legal and professional fees such as an accountant, attorney, or bookkeeper.
- Business equipment such as a laptop, printer, office desk, or phone.
- Office space, including a home office.
- Communication such as internet, a PO box, or phone line used for business purposes.
- Travel expenses including your vehicle mileage and parking fees.
- Education and memberships such as the annual fee for a trade association or cost for a seminar, book, or course on a topic relating to your industry.
- Meals (as long as the meal is with a prospective or current client or partner and business is discussed).
Most of the property-related expenses can be deducted at face value, although some, like capital improvements, are depreciated over a period of time. Many business deductions are a portion of the expense. For example, you can only deduct 50% of your meal expense, or $5 per square foot of your home office, with a maximum of 300 square feet.
3.STOCK MARKET / SHARES.
I will create an blog specifically on share market .
4. BONDS
What Is a Bond?
A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).
Simply it's a type of loan which you give to company or Government.
Why bonds are issued?
Governments (at all levels) and corporations commonly use bonds in order to borrow money. Governments need to fund roads, schools, dams or other infrastructure. The sudden expense of war may also demand the need to raise funds.
Similarly, corporations will often borrow to grow their business, to buy property and equipment, to undertake profitable projects, for research and development or to hire employees. The problem that large organizations run into is that they typically need far more money than the average bank can provide. Bonds provide a solution by allowing many individual investors to assume the role of the lender. Indeed, public debt markets let thousands of investors each lend a portion of the capital needed. Moreover, markets allow lenders to sell their bonds to other investors or to buy bonds from other individuals—long after the original issuing organization raised capital.
How Bonds Work
Bonds are commonly referred to as fixed income securities and are one of three asset classes individual investors are usually familiar with, along with stocks (equities) and cash equivalents.
Many corporate and government bonds are publicly traded; others are traded only over-the-counter (OTC) or privately between the borrower and lender.
When companies or other entities need to raise money to finance new projects, maintain ongoing operations, or refinance existing debts, they may issue bonds directly to investors. The borrower (issuer) issues a bond that includes the terms of the loan, interest payments that will be made, and the time at which the loaned funds (bond principal) must be paid back (maturity date). The interest payment (the coupon) is part of the return that bondholders earn for loaning their funds to the issuer. The interest rate that determines the payment is called the coupon rate.
The initial price of most bonds is typically set at par, usually $100 or $1,000 face value per individual bond. The actual market price of a bond depends on a number of factors: the credit quality of the issuer, the length of time until expiration, and the coupon rate compared to the general interest rate environment at the time. The face value of the bond is what will be paid back to the borrower once the bond matures.
Most bonds can be sold by the initial bondholder to other investors after they have been issued. In other words, a bond investor does not have to hold a bond all the way through to its maturity date. It is also common for bonds to be repurchased by the borrower if interest rates decline, or if the borrower’s credit has improved, and it can reissue new bonds at a lower cost.
5. Gold and other minerals.
There are a plethora of precious metals, but gold is placed in high regard as an investment. Due to some influencing factors such as high liquidity and inflation-beating capacity, gold is one of the most preferred investments in India. Gold investment can be done in many forms like buying jewelry, coins, bars, gold exchange-traded funds, Gold funds, sovereign gold bond scheme, etc.
Though there are times when markets see a fall in the prices of gold but usually it doesn’t last for long and always makes a strong upturn. Once you have made your mind to invest in gold, you should decide the way of investing meticulously. If you want to know more about Gold Investment plans and other facts like different ways to buy and invest in gold, how to invest in gold online and much more, you are at the right place.
How to Invest in Gold: Best Gold Investment Plans
Coming to the most important part which deals with – “How to invest money in gold.” Well, there are some conventional and modern types of gold investments preferred by people. In conventional forms, it was just buying physical gold in the forms of jewelry, coins, billions, or artifacts. The scenario has changed nowadays and investors have more options to invest such as gold ETF and gold funds.
Gold ETFs (Exchanged Traded Funds) is similar to buying physical gold but the only difference is you don’t actually buy the physical gold. You don’t have to go through the hassles of storing the physical gold, instead, the gold bought is stored in Demat (paper) format. On the other hand, gold funds deal with investing in gold mining companies.
Let’s delve a bit deeper into the differences between the basic gold investment methodologies, Viz.
- Physical Gold
- Gold ETFs (Exchanged Traded Funds)
- Gold Mutual funds
- Sovereign Gold Bonds
- DIGITAL GOLD.
6. Franchise and licencing.
There are few faster or more profitable ways to grow your business than by licensing patents, trademarks, copyrights, designs, and other intellectual property to others. Licensing lets you instantly tap the existing production, distribution and marketing systems that other companies may have spent decades building. In return, you get a percentage of the revenue from products or services sold under your license. Licensing fees typically amount to a small percentage of the sales price but can add up quickly.
For example, about 90 percent of the $160 million a year in sales at Calvin Klein Inc. comes from licensing the designer's name to makers of underwear, jeans and perfume. The only merchandise the New York-based company makes itself, in fact, are its women's apparel lines. Many large corporations, such as the Walt Disney Co., generate less significant proportions of their revenue from licenses. IBM, after energizing its efforts to license its thousands of technology patents a few years ago, now attributes $1 billion a year of its corporate sales to licensing. The downside of licensing is that you settle for a smaller piece of the pie. Calvin Klein-branded products, for example, generate $5 billion in sales a year, the vast majority of which goes to licensees and retailers. At the same time, licensing revenue tends to be high-margin, with almost all the fees from licensing flowing straight to the bottom line.
7.Cryptocurrencies
What Is Cryptocurrency?
A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.
Advantages and Disadvantages of Cryptocurrency
Advantages
Cryptocurrencies hold the promise of making it easier to transfer funds directly between two parties, without the need for a trusted third party like a bank or credit card company. These transfers are instead secured by the use of public keys and private keys and different forms of incentive systems, like Proof of Work or Proof of Stake.
In modern cryptocurrency systems, a user's "wallet," or account address, has a public key, while the private key is known only to the owner and is used to sign transactions. Fund transfers are completed with minimal processing fees, allowing users to avoid the steep fees charged by banks and financial institutions for wire transfers.
Disadvantages
The semi-anonymous nature of cryptocurrency transactions makes them well-suited for a host of illegal activities, such as money laundering and tax evasion. However, cryptocurrency advocates often highly value their anonymity, citing benefits of privacy like protection for whistleblowers or activists living under repressive governments. Some cryptocurrencies are more private than others.
Bitcoin, for instance, is a relatively poor choice for conducting illegal business online, since the forensic analysis of the Bitcoin blockchain has helped authorities arrest and prosecute criminals. More privacy-oriented coins do exist, however, such as Dash, Monero, or ZCash, which are far more difficult to trace.
Bitcoins give return of 800%.In fact, $1,000 in Bitcoin bought on March 23, 2020, would be worth about $8,816 today.
If you don't find a way to make money while you sleep, you will work until you die.
Warren buffet
Written and edited by :-
Shivnath Pandey
Very nice ...keep it up,👍🏻👍🏻
ReplyDeleteNICE CONTENT.KEEP IT UP.👌👍👍👍
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