“What should I invest in with idle money?” is a question that AHS believes many investors are interested in. Especially those investors who have recovered their investment capital but still have some idle money left.
If so, you should find a way to make money from idle money by investing in passive money. That is, plan to build wealth in the long term. What is idle money investment, the most effective way to invest idle money and the regulations will be provided in this article. Let's find out with AHS to use idle money effectively!
What is idle money?
Idle money is understood as a personal amount of money that is not needed for a certain period of time. This is the remaining amount after you have divided the expenses for life, including the reserve for emergencies. Normally, with this idle money, many people will choose to invest, seek more profits and expand assets, so that money can generate money again.
Suppose, if you do not use idle money to invest but just keep it intact, is it a good idea? The answer is no, because over time this amount of money will also be affected by inflation. When inflation increases, it means that idle money will lose its value. Therefore, investing is the way for you to protect your idle money from the risks of inflation.
What is idle money investment?
Investing idle money is buying a certain type of asset when you have an unused amount of money. The purpose of this is to create profits and increase the value in the future. Some forms of idle money investment that many people are currently applying include: Investing in gold, investing in stocks, investing in real estate, opening a company, opening a store, buying open-end fund certificates... The time to invest idle money in the above channels is often long-term and somewhat riskier than saving in a bank. However, if successful, it can bring great profits.
4 effective investment methods to profit from idle money
Savings
This is one of the most popular forms of profit. All banks today focus on capital mobilization channels with many terms and types of savings to meet customer needs.
Investing is simple, does not require specialized knowledge, so anyone can do it. There are both online and offline savings for you to choose from. If you want to save time, you can choose to save online. The risk is low because banks have deposit insurance for customers.
The interest rate for savings deposits is around 4-7%/year, a relatively low rate, not bringing high profits. However, to receive the above interest rate, customers can only withdraw money (principal and interest) at maturity. If withdrawn before this time, the interest rate received is usually only under 1%. Bank interest rates can fluctuate strongly based on changes in macroeconomic factors.
Buy gold, USD
Gold is an asset that has value over time and also has the effect of preventing inflation. Therefore, using money to buy gold is also considered a popular method of investing idle money in Vietnam.
The price of gold in Vietnam depends heavily on the State Bank. In addition, there is a large gap between the domestic gold price and the world gold price. Therefore, many investors are quite hesitant to invest in gold. There is a risk of theft if gold is not stored carefully.
Invest idle money in stocks
This is also considered the most beneficial method of investing idle money for business investors. Specifically, when participating in stock investment properly, investors will receive interest rates 2-3 times higher than the amount of savings deposited in the bank. This is the simplest, most flexible form of investment and does not require high investment capital, simple, easy and fast transactions. Anyone can participate and easily make transactions.
Low profitability, high risk. Regularly update financial knowledge and market situation to invest at the right time. Stocks can increase artificially leading to sudden increases and decreases. Insider trading affects stock prices on the market.
Real Estate Investment
High long-term profit growth. The growth potential of the real estate sector is huge due to the strong urbanization and infrastructure development in important economic areas.
The limitation of this form of investment is that the investor must have enough capital and a long time to carry out the transaction. If unfortunately there is an accident, the real estate will have low liquidity, easily get involved in lawsuits related to law, paperwork, and encounter many difficulties while researching and choosing segments to invest in. To get income from this source of investment, you must have an understanding of the real estate market. However, the market has many information channels and "blind" information, so you need to find and filter useful information. You can learn and update real estate market information at AHS or visit the AHS website to analyze and invest in suitable real estate.
