Invest to financial freedom - 12 Investment Tools for your Personal Finance.
Today, I have nothing to do. So I sat down and open my Microsoft word and intend to type something out. I just type anything. Suddenly I came out an idea to list down all the investment tools that we might use for Personal finance or achieve financial freedom.
Below is what I type on brainstorming and without any long explanation:
Bonds : Returns more than Banks can give, low risk. However returns still low.
Saving: The most secure options to manage your money. However, returns are really low and consider weak compare with inflation rate.
Stock: Have the possibility to gain high returns, high liquidity but most of the time, risk is quite high.
Mutual Funds: Combination investment, invest diversification, most of time have at least one fund manager or expert to manage the fund or your money. However, your returns are too depend on the average returns of all investment in mutual funds.
Gold: The most trust worthy investment and can be make as long term investment in your plan. A good “weapon†to fight with inflation rate.
Forex: So far is the most aggressive investment that I found. Returns are extremely high. However, the risk also high and the market are easy affected by international news, events and politic decisions. So it is hard to be control.
Real Estate: Can reduce the risk of inflation rate for your money. One of the most popular investment tool in the market. Risk are depend on housing market and your management skill.
Life Insurance: Basic investment for many people. Protection is high but hardly can be depend for your retirement.
Coins (I don’t know the name exactly, please remind me if you know) : have its own value and artistic value, low production. But investment modal is high and this is periodicity investment.
Stamps: Hobby type of investment. You can enjoy it while you can make some money from it. But only if you are stamps collector and this investment is hardly get any returns in short period.
Antique: Something that not only can beautify your house but also can be an investment. However you need to have some expertise in antique, high modal investment and long term investment.
Lotto/ gambling : Really an investment? “invest†small but gain big. But once you addicted, your future will be ruin!
Above are just some of the list that I can think about and I believe that are a lot of different investment tools that available in the market. Maybe I don’t know or I miss it. Anyway, the best way to invest is having a plan that consist different type of investment to assist you to achieve what ever you want.
Hmm…I definitely won’t include gambling as part of my wealth accumulation planning
However, many people in this world do make gambling as their plans to be rich and wealthy.
I guess that the reason why many people in this world are not rich and wealthy.