This is how you invest smart money

You want more from your money, because it is currently gathering dust in your savings account. You feel that you can buy less and less with the same euro. This is the result of inflation. If you want to protect your money against this by making it increase in value, you can invest it.

But how do you invest your money smartly? You also do not want to take too much risk.

You can read how to invest your money smartly in this article. You will discover the different ways to invest your money and how you can easily make money work for you.

Ways to Invest Money

There are different ways to invest money. Which way suits you best depends on a number of things:

• How much money you have to invest
• How much risk you want to take
• How much time and energy you want to put into it

There are five ways to invest your money. We will now discuss these.

Way 1: Self-Investing

The first way is by investing your money. You buy financial products, such as shares in a company. With investing, you buy shares, for example. You then own a small part of a company, as it were. You hold these for a longer period in the hope that they will become more valuable. If you then sell them for a higher price than you bought them for, you achieve a return. That is profit on your money.

Self-investing can yield a high return, but it also costs a lot of time and energy. If you are interested in financial markets and do not mind investing a lot of time, this can be a great option for making money work for you.

Way 2: Real Estate

‍If you invest your money in real estate, you buy land and buildings, such as a house, with the aim of achieving a return. Not only homes fall under real estate; you can also buy and rent out commercial properties. There are strict rules for this, so you need to know exactly what you are getting into.

Investing in real estate is often a complicated process and often requires a high initial investment. However, there are also possibilities, for example, that you can use the equity in your home as collateral to acquire a commercial property. There are risks associated with this.

Way 3: Crypto

Cryptocurrency: a hit one moment, the next moment you hear nothing about it. But one thing is certain: you will definitely have heard of coins such as Bitcoin, Ethereum, and Dogecoin. Some people have become rich from it; others have lost everything. However, we cannot deny that investing in cryptocurrency is a popular way to do something with your money. You can easily do this via exchanges such as Kraken or BitVavo. Investing in crypto is often accompanied by high risks.

Way 4: Crowdfunding

The idea of Crowdfunding is that people with a good (business) idea can directly raise an investment from private individuals. You can see this as investing in a company, but without the intervention of a third party. You have platforms such as KickStarter and GoFundMe where you can choose from different projects. You can choose which project you have faith in and then invest a desired amount here. In return, you will receive, for example, a compensation, such as a percentage of the profit or an early-bird version of the product.

Way 5: Wealth Management

Wealth management means that you have your money managed by someone who specialises in it. Wealth managers invest capital with the aim of achieving a return. This used to require a high initial investment, but that is not necessarily the case nowadays.

There are two different types of wealth management: individual and collective. Individual wealth management is custom-made. Your situation is assessed and an investment plan is drawn up based on this. A high initial investment (from €100,000) is often required for individual wealth management.  

Making money work for you for the future without worry?

Do you want to build up capital for the future, but would you rather engage an expert who knows exactly what to do?

Vive is an online individual wealth manager. We put your money to work with a personalised investment plan tailored to your needs and execute it for you. This way, you build capital while you hardly have to do anything. You can read more about what we do here, but you can also easily try the app.

Please note! Investing involves risks.

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