How much can you really get, how to make money on investments, and in what financial instruments it is worth investing money.

Russians are increasingly interested in the question of passive income, because the money lying at home does not bring income, but only depreciate.

How to make money on investments

The secret of accumulating large amounts is the capitalization of interest. Reinvestment of profits increases the rate of return and quickly increases the Deposit.

For clarity, take $1000. Let's say you put this money in the Bank at 5% without capitalization, after 1 year you get $50 profit. Let's say that in the second year you decide to put not a thousand, but $1220, then in the second year your profit will be $ 61, not $50.

The result is not impressed? All right, then let's say these funds have been lying around for 50 years.

• In 3 years - $1 158
• In 4 years - $1 216
• In 10 years - $1,629
• In 20 years - $2 653
• In 30 years - $4 322
• In 40 years - $7 040
• In 49 years - $10 921
• In 50 years - $11 467

If you were constantly taking interest, you would earn only $2500. If you added interest to your Deposit every year, you would earn $11,467. This difference will be much larger at higher percentages.

Thus, the capitalization of interest even at low interest rates on deposits will increase your capital by 11 times.

Historical fact

Benjamin Franklin, depicted on a $ 100 bill, knew the "power" of compound interest. Back in 1791 he put on a Bank Deposit of $5000. These funds he bequeathed to the city offices of Boston and Philadelphia. In the will it was said that the authorities will be able to withdraw funds only after 100 and 200 years. After 100 years, the city received $ 500 thousand In 1991, the remaining amount was paid and it was $20 000 000.

Of course, few people are willing to wait 50 years, so the "power" of compound interest can be supplemented by two points:

• Monthly additional investments. If in the above example not only left interest on the account, but also reported monthly $1000, the total amount would exceed $209 thousand.
• Increased yield percentage. So, if in the example above, the percentage of return was not 5%, but 20%, the total amount would increase to $9.1 million.

How much can you earn on investments using secrets

Let's say we have $1000 in a month we get 7% profit, capitalize interest. Every month we will report on 100.e. In this case, the Deposit will grow as follows:

• 6 month – 2 216,06 have.e.
• 1 year – $4 041.04.
• 2 year – $10 890,03.
• 3 year – $26 315,29.
• 4 year – $61 055,92.
• 5 year – $139 298,5.

The result is impressive, isn't it? Given that initially we invested $1000 regular additional Deposit made in the total amount of $6000.

Even if you take initially $1000 to put these funds 6% per annum, and just reinvest the profits without reporting anything, the results will be as follows:

1	1 060	1	2 132,85	1	4 291,63
2	1 123,6	2	2 260,82	2	4 549,12
3	1 191,01	3	2 396,46	3	4 822,06
4	1 262,47	4	2 540,24	4	5 111,38
5	1 338,21	5	2 692,65	5	5 418,06
6	1 418,5	6	2 854,2	6	5 743,14
7	1 503,61	7	3 025,45	7	6 087,72
8	1 593,82	8	3 206,97	8	6 452,98
9	1 689,44	9	3 399,38	9	6 840,15
10	1 790,8	10	3 603,34	10	7 250,55
11	1 898,24	11	3 818,54	11	7 685,58
12	2 012,13	12	4 048,71	12	8 146,71

 

How to make money on investments on the Internet

Surely, you have a question, where to find such a yield? It should be looked for where these figures are confirmed by a condition of real people. For example, look at the chart of the yield of Warren Buffett.

Reminds me of the above calculations, is not it?

Such profitability is provided by almost all financial markets. Many people are afraid of them like fire, so nothing changes in their lives – they earn while working.

Next, let's talk about specific ways to earn money on the Internet.

1. PAMM accounts – a system that involves the transfer of money to the management of a professional trader to trade on the interbank currency exchange. The potential yield here is 100 – 120% per annum of the invested funds. The main thing is to choose the right Manager and invest in more than one trader.
2. ETF funds – companies that buy shares included in specific stock indices. For example, the Dow Jones index consists of an average of 30 companies. ETF DIA buys shares of these 30 companies by copying the index.

The essence of such investments is that the share of the Fund is not expensive, unlike the shares of 30 companies, if you bought them yourself (about 20 thousand dollars). What to say about the ETF copying the s&P500 index, which includes 500 companies.

Shares of ETF-funds are traded on the stock exchange, as well as all other shares (Sberbank, Gazprom, Apple and so on). If you like the idea and want to have funds in your ETF portfolio, then read the guide on how to buy stocks.

3. Bonds and other securities. Investing in government bonds is a great way to keep savings: the yield percentage is higher than most deposits, the performance of obligations is guaranteed by the state, you can buy 10 - and 30-year bonds, bonds can be sold at current value at any time. Foreign funds are very fond of Russian government bonds, having bought this year 85% of government bonds.
4. Trust management of securities. Many companies provide these services. The advantage of this tool is full state regulation.
5. Investments in start-UPS and real business via the Internet. Currently, this method of investment is gaining momentum and gives investors the opportunity to increase their capital.

How to make money on investments offline

You should not put all the money in one basket. To form a "safety cushion" consider the classic ways of investing:

1. Realty. This asset has a number of advantages:
   • Can be used – live alone or rent;
   • The price of the property increases every year on average;
   • Has objective value and application.
2. Bank deposit. A great way to save money for a rainy day. The main thing to choose a reliable Bank and choose the right conditions. Part of the funds can be put for a long time, part – to leave with the possibility of early withdrawal.
3. Business. This is one of the most socially useful ways of investment, as it not only creates new jobs and fills a certain segment of the market, but also helps the state and the economy of the region. By the way, such investments can be not only active (that is, when you are engaged in entrepreneurial activity), but also passive (we will discuss this in the next article).

How much you can earn on investments

Let's look at the specific figures of the yield of some shares from the NASDAQ stock exchange.

The growth rates of well-known Russian companies are lower.

By the way, smaller companies are more likely to grow if their activities are really needed by people. The growth of such companies can be in the thousands of percent.

If we analyze the profitability of PAMM accounts, we can see the following picture.

106 715,8% profit all the time, taking into account the capitalisation of profit.

This Manager was entrusted with funds in the amount of over $1.3 million.

Is it possible to make money on investments

Above were listed the most profitable financial instruments that anyone can use. Millions of people around the world work with these financial instruments, earning profits.

Competent financial management will not only save, but also to increase capital, getting a stable passive income.

To start earning money passively is not difficult. It is enough to allocate a certain amount, choose a project and invest in it, then expand your portfolio, deepen your knowledge and expand investment horizons.

If you are still afraid to start investing, try to invest a small amount – it will allow you to understand how the system works, and will be the first small step to a better life.

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