First of all, you need to know: there is NO way of investing money in Montgomery County, Ohio, which would allow you to be 100% sure that your funds are safe. However, there are some reliable financial tools.
Here are tips on how to use savings if you do not want to lose your money.
Fixed income investment tools
Below we talk about the so-called fixed income, which implies:
- low risk for the investor;
- known terms and amounts of payments.
Trustworthy issuer bonds
Bonds are considered to be an instrument of caution – securities that secure the loan relationship between the issuing company and the investor.
The issuer – the structure that issued the bonds – is obliged to return to the depositor the amount received from him with interest in the form of coupons. Interest rate is announced in advance. Coupons are usually paid once every 6 months.
The issuer can act as a commercial corporation and the state. Government bonds are the most reliable (although the interest rate on them sometimes turns out to be relatively low).
Deposit for the amount within the specified DIS framework
DIS – this abbreviation stands for the deposit insurance system. This is a mechanism for the protection of deposits of individuals, working in case of revocation of a license from a bank. When the bank faces a critical situation, investors will be reimbursed amounts up to $30.000.
Until 2014, the marginal compensation was only $15.000.
In Montgomery County, Ohio, all banks that attract individuals’ finances are required to enter DIS.
Investment in real estate
To keep savings from inflation, many people put them in square meters.
The most advantageous option is to buy a room at the stage of construction of the building, but this option is fraught with some risks.
Alas, there are cases when the developer is unable to fulfill the obligations assumed. With such a scenario, real estate investors become owners of an imaginary living space in an abandoned long-term construction.
The buyers of finished new apartments, who in the future plan to resell the purchase at a bargain price, are at less risk.
However, their investment will be justified if the area will be rented to good temporary residents or required to live by a close relative until the time of sale.
The owner is obliged to bear the burden of certain payments (maintenance and repairs, heating) even if no one is registered in the apartment.
Where to invest a small amount of money?
It’s naive to believe that financial management is the fate of the Rockefellers. Any money should work. Even a not very impressive amount can be successfully invested. But how to invest little money in Ohio? Let’s figure it out.
Application for modest savings
With proper ingenuity, it is realistic to multiply even a $100 amount (for example, on the purchase and resale of cheap popular goods or the purchase of inventory for the provision of simple services).
However, for convenience, we will mean by “small money” not $100 but at least $1000. We suspect that this is interesting to most readers.
Bank deposit with capitalization
Examine the current offers of the bank you trust and determine the money for the deposit with good conditions.
If the amount is small and it is easy to part with it, try to pick up a contribution with capitalization (even if the available interest rate is not too high).
Deposit capitalization is a regular (once a month or quarterly) transfer of interest. In each successive period, interest is charged on a larger amount, which gives an obvious benefit.
It makes sense to open a deposit. Now the amount is small, but over time you double or triple it.
Buying precious metal coins
Perhaps your savings will be enough to buy a few coins of gold and silver. They have the potential to increase prices due to fluctuations in the course and increase in collection value.
Coins can be put on the so-called “metal contribution” – the interest on it is charged in gold (silver).
However, for profitable investment of this kind, it is necessary to follow the rates and correctly predict the situation.
Options for gambling men
If you understand the mechanisms of functioning of the currency markets, try to play Forex.
Just do not reassure yourself too much – there is no need to wait for a guaranteed profit in this case.
We add that the owner of $400-$500 can use tools such as PAMM accounts and mutual funds.
Investing in your business
Well, one of the best options is to invest in your startup. For this, you need to comply with the following requirements:
- your personal interest in the chosen field;
- availability of demand for goods and services that you would like to offer;
- moderate competition.
Outline a niche for yourself, carefully study the competitors. If possible, visit them as a client to assess their level. Write a business plan, paying special attention to the calculation of initial costs and payback.
Further you, probably, need the advice of a specialist. For help, you can contact either lawyers (for a fee) or a regional business incubator.
Do not be afraid of the registration process – it is much easier than it seems.
Even before the start of serious work, it will be very useful to study programs for stimulating small businesses that operate in the territory of your region. It is possible that you will be able to get material support for them – it will hardly seem superfluous even if you have your own savings.
The most reliable firms are those that focus on basic consumer needs – household goods and food stores (provided that the outlet has a good location), hairdressers, etc. However, they can have a rather long payback period.
Pay attention to the IT sphere – online stores, various services.
Also, there are good opportunities for growth:
- various delivery services;
- projects aimed at the early development of children;
- fitness clubs and other institutions in the field of healthy lifestyles;
- organizations for the repair of apartments or equipment, etc.
There are plenty of options, it is necessary to dwell on something concrete, taking into account the situation in the region.
This small business does not have to take up all your time. Perhaps he will be only a side job and – concurrently – a pleasant hobby.
Tips for investors
- A typical mistake of investors is the pursuit of apparently solid business initiatives;
- The modern world has many faces. Sometimes ridiculous “cool” services and goods bring more profit than a material rural sawmill. Here is an example: a virtual cat simulator and self-cleaning T-shirts are one of the most successful startups of recent years;
- Look for projects in which there is a “trick” – something new, memorable, allowing to attract the attention of the consumer, which is littered with thousands of different offers;
- It is important that developers can not only come up with something worthwhile attention but also translate the idea into real life. Assess the adequacy of young entrepreneurs will help their business plan;
- The business plan should contain a minimum of abstract beautiful words and a maximum of reasonable calculations, as well as a clearly defined monetization scheme;
- When you are planning a particular startup, be sure to clarify whether there is something similar in the world. Many initiatives copy projects that have already been implemented abroad. Information about the fate of similar companies will allow sensibly assess the real potential of the newborn idea;
- Remember the importance of the legal component. The presence of an already issued patent for the promoted invention plays a crucial role in the fate of a start-up. Otherwise, with the first claims to success, the innovation will become the prey of more enterprising competitors.
Category: Finance
Tags: Business, financial