Saving money is just as important as making money. The ability to create capital in the first place, allows you to save that money. Money that is saved can then net a slow return from interest rates banks offer for letting them hold your cash. But, making money is all about risk management, looking for innovative but solid strategies that will allow your money to make money. Now of course the money you have set aside in the bank does make money, but investing accelerates this to a faster pace. The combination of making money and then instantly saving money is an incredibly lucrative cycle. Any profits you make will be funneled back into you own private savings, so there’s no baggage left around. But how on earth do you do that? Cutting out the middleman is something investors have tried to figure out for many decades. Sometimes a bridge is needed to get to the other side and for that you pay the guard at the bridge a fee. On the other hand, what if you found a way to no longer need the bridge in the first place?
Newly created farmland
The world is growing and so is it’s appetite. With more people in the world, the need for more farmland has risen. Farmland is land with soils that are healthy and complex enough to grow food consistently year over year. Scouting parties all around the world are trying to do the math, and figure out just how much viable farmland isn’t being utilized. Every year, the acre patch of usable farmland increases by estimate and by research. First-time investors want two things, a great return but something that stands to increase in value by a lot over the coming years. Getting into an area of investment with little competition is therefore highly recommended. You can buy viable farmland at auctions buy real estate agents sell farmland as well.
Sometimes properties are attached to the sale price, which makes the buying of just the farmland almost impossible. However, you should look to invest in just farmland, preferably brown land that has been turned into green land. Green land that has been rejuvenated is perhaps the best buying strategy. Green land that has fallen into disrepute is almost the same value as brown land. But green land that has been brought back to health is incredibly quickly snapped up, so be on your toes. The agriculture value is what you want to be aware of, i.e. what the percentage chance is of growing produce in the soil. In the UK for example, it’s on average between £6,000 to £12,000. However the recurring value factor is from the year-on-year selling of produce grown from it. Working with farmers and businesses to give them access to your farmland is how you make the profit.
Treasuries, the solid bet?
Government treasuries are one of the most loved investment opportunities for all kinds of investors. They are easily the number one place to go if you want solid returns. However, they are complex at times, especially during economic turmoil. Essentially the government offers bonds that equate to long-term growth expectations. The yield is how much you stand to make from loaning the government your money. There are many subsets of treasuries such as the 2-year, 5-year, 10-year, 15-year and all the way up to the 30-year bond. Obviously the longer the time it takes for the bond to mature the lower the interest rate will be. However because you’re receiving interest on the bond for many years, the yield is larger the longer the bond is. Long bonds are designed for long-term economic growth, planning and expectations. Thus they usually have a higher threshold bar for investors to get in.
Start off with investing in a 2-year treasury bond as it’s the easiest to understand for first-time investors. These quite clearly are the shortest, so you can understand the sense of yield curve change and percentages shift up and down. The longer the bond is, the more stable the yield curve remains. But the quality of the economy per naton determines what makes a bond investment worthwhile, for example you wouldn’t want to invest too much in the Argentinian treasuries, as their economy is woeful at the moment. German bunds are also quite volatile and negative at the current time. The best bet is to look at UK, US and Australian bonds for the highest yields.
Cutting out the middleman
ISAs are versatile, that’s their main attraction to beginner investors. There’s more than one type of ISA as how an individual saves his or her money is made as flexible as possible by the free market. ISA stands for Individual savings account. An ISA can be hitched to almost any situation. One of them is the peer-to-peer ISA which cuts out the middleman which is usually an agent or a bank. Consequently, you don’t have to pay any fees to those entities, allowing you to take more of your profits away. This Innovative Finance ISA or IFISA stands to make your more cash than any normal ISA would. The interest rate is quite high, ranging from 3% to 10%. That equates to around triple what an ISA would get on it’s own.
A IFISA is usually for small business owners who want to receive funding to start their own business or grow their business in size. But why should you give your money to a business owner that may not have proven their ability to grow? Well, IFISAs don’t get taxed, so even if the return is not as large as you expected, you keep all the interest on the investment. The risks are clear, as P2P lending carries with it a trust balance. Borrowers business might not do as well as they promised, which could mean you don’t get your money back. If this occurs don’t expect any kind of compensation because again it’s a peer-to-peer investment with no middleman between. The middleman provides security in exchange for a cut of the profits i.e. fees. But since the ultimate reward is that you keep all the money you make, you have to be bold enough to take the risk that you could make a loss or lose all your investment. The trick is to invest in a business you have fully scrutinized and have confidence in to make good on your belief in it.
Into the fund
Investment firms are constantly looking for first-time investors that want to make consistent returns. However, beginners need to look for investment firms that are specifically for the average investor. The risk won’t be as high but nor the rewards. They will also usually be short-term investments but some small firms offer long-term investments with medium-high returns as well. Investment firms are private so you have to weigh up the liquidity of the firm compared to the risk you are taking. Firms that are not worth as much as you are putting in are not a safe bet as if they squander your money they cannot insure the losses. However index investment firms are growing in number and that’s because index funds are becoming the safest place to put your money.
Innovative financial ISAs are a great way to invest in businesses. Small businesses have no bounds to which they can grow, so you could potentially be making a massive return. However you must be aware of who you’re giving your money to and know the risks of peer-to-peer investing. Equally, you should look for a substantially solid bet such as treasury bonds as they are guaranteed by basically an entire economy and not just a small independent entity.