Where can I make my money profitable?, I want to make my money profitable, how can I do it?, this is the question that many savers are asking today.
Although the profitability of traditional deposits has declined in recent years, the financial market is beginning to offer many alternatives and ways to monetize the money of those who wish to take advantage of their savings.
Tips to make your money profitable
There are a number of elements that we have to take into account to avoid that our goal of making money profitable is truncated. Here we leave two of the most important tips to make money profitable.
- Inflation : We already know that the value of money over time is changing, it is variable. When the price of the products on the market rises, your purchasing power decreases gradually, and somehow the money invested is worn out. If you can not make it profitable at an appropriate interest rate the value of your money saved can be gradually reduced and therefore the profitability obtained through it, too.
- Taxes : When deciding how to make your money profitable you should consider what deposits or means it is most fiscally cheap to do, since a part of the profitability achieved is going to be in the form of taxes. For example, in the case of investment funds they have a series of tax advantages that will allow you to save taxes.
Ways and ideas to make my money profitable
For all those who wonder how I can make money profitable, we will go on to name some alternatives with which savers can make their money profitable and take advantage of their savings.
Bank deposits are the most widely used savings products where a natural person deposits money in a bank in exchange for a return with a very low level of risk.
As a result of this absence of risk, the profitability from bank deposits is much lower compared to other types of investments in the financial market. Therefore, if what I want is to maximize my money, I would have to resort to other types of financial alternatives.
The purchase of shares of companies with which to be able to receive a return for your savings in return, is also an appropriate option to be able to take advantage of your savings. There are companies with good economic health that offer interesting dividends, the average profitability in this type of operations is approximately 4%, but it can vary quite a lot according to the company.
However, in this case you have to keep an eye on the stock prices of the companies of which we are part of the shares, since small changes or events vary the price a lot, and therefore, the ability to make my money profitable .
Investment in fixed income bonds
It must be taken into account that the profitability of the Spanish bond over the last 10 years has suffered a continuous decline and has gone from 4% to 1% as of August 2016.
This is due to the economic situation that Each country suffers, so when making this type of investment to make my money profitable, we will have to be aware of the situation that the country is going through.