Where to invest extra money in 20, 30 and 40 years

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

You started earning more than you can spend. Received a large deal or inheritance bonus. Won the lottery and acquired a large sum. What to do with money - Lifehacker understands.

Where to invest in 20 years

Into education

We have several years of work behind us, and it is already clear what skills are lacking and in which direction we need to move on. Free money should be invested in courses, seminars, trainings. The main thing is to make sure in advance that they are not carried out by charlatans, but by people respected in their midst. Such spending will bring new knowledge and new connections. And this promises many interesting projects and salary increases in the future.

Into the airbag

The period from majority to 25–30 years is the age at risk. The landlord can refuse a rented apartment. At work, the youngest will be laid off, because he came last. I would like to move to another city where more prospects open up.

To survive the crisis period with minimal losses, you need to have an amount that would be enough for a normal existence for two months. It will be enough to pay a deposit for a new apartment and pay a percentage to a realtor so as not to starve while looking for a new job. For the move, it is desirable to use additional sources of income.

Advice for a younger age applies to all subsequent periods of life.

In stock

When the savings are small, you can test the system for the future. Determine the amount that you will survive parting with for the long term, and invest it in blue chips - stocks that show an upward trend. After 5-7 years, check how much money has “dripped”.

To the franchise

A franchise is an option for a ready-made business, when all the conditions for development have already been created. But in this case, not only you choose, but also you. A willingness to comply with the rules and work in a team is essential.

Franchise costs can range from 100 thousand to several million. There is no direct relationship between the value and the prestige of the company. Costs for production areas, equipment and so on are important.

A franchise is training for which you do not pay money, but also earn in the process. So it is she who is ideal for a young businessman. And it's easier to combine with work than your own business.

Roman Alekhin, founder of the marketing group "Alekhin and Partners"

Where to invest in 30 years

To the stabilization fund

This amount should be enough for the family to live as usual for at least six months. It is convenient to store money on a savings account in a bank: a small percentage is charged monthly, and you can withdraw the entire amount or part of it without loss.

In savings

If the money is not needed in the near future, it can be deposited in the bank for a fixed period. Early withdrawal will most likely strip you of all bonuses, but the interest rate is higher here. Pay attention to whether there is capitalization. If there is, the charges will be added to the total amount on a monthly basis, then interest is charged on the increased amount.

Another important point is the possibility of replenishing the deposit. The more you deposit, the more you can take back.

It will be possible to increase capital if the interest rate is higher than inflation. If not, it's just about saving money.

In real estate through a mortgage

This option works if you already have a home. Perhaps you have already managed to get rid of the mortgage for one apartment and accumulate a down payment for the second. In general, investing in real estate through a mortgage is a controversial step.

Let's say you buy an apartment for 3 million rubles with an initial payment of 750 thousand and 13% per annum. You are ready to pay 33.6 thousand rubles a month for 10 years. During this time, you will give the bank 4.03 million, including 1.78 million in interest. The apartment cost 4.78 million rubles, and it is likely that its market price will not soar in 10 years.

If this is a secondary housing market, the apartment can be rented out all this time. Based on the cost of housing, it can be assumed that the tenant will pay 20 thousand rubles a month. For 10 years, he will give 2.4 million, which will fully cover the interest on the mortgage and 20% of the original cost of the apartment. In this case, housing will cost you 2.38 million.

Into your own business

Let's say you previously trained on a franchise or otherwise mastered the skills of running your business. Now you can invest in your own business.

It is not necessary to open an enterprise from scratch, you can buy a ready-made company. There are similar offers even on sites where they mainly sell hand-held irons and baby strollers. This is, of course, not about factories. Usually these are small flower stalls, dill greenhouses, service stations, online stores, beauty salons.

The advantage of such a purchase is that the company is already working: the staff has been formed, suppliers and customers have been found. What you should pay attention to in order not to burn out:

• profitability;
• reputation;
• no problems with the law;
• lease terms for premises or land.

Even taking into account the fact that the company is already working, in order to make a profit, you will have to sweat: understand business processes, additionally invest in advertising.

To be successful, it is important to understand how to resolve problems, including with the auditors, which tools work and which do not, which line of business you like and where you can ideally implement your knowledge and skills.

Roman Alekhin, founder of the marketing group "Alekhin and Partners"

Where to invest in 40 years

In retirement

Only complete optimists can hope for state support. Therefore, it's time to think about how to feed yourself in old age. Long-term deposits, "blue chips" are suitable in this matter. There are other options that will only bring profit in the long run.

Buying gold

We are not talking about jewelry, most of the price of which is the work of the master. Buy gold bars or coins, buy precious metal-backed stocks. The peculiarity of such an investment is that it will pay off only after a decade or two. That is, just in time for retirement.

Venture funds

It's not worth betting all your money on this horse. Venture capital funds invest clients' funds in innovative businesses and start-ups, which is always risky. 70-80% of them do not become profitable, all hope is for the remaining 20-30%.

On the other hand, a small company can grow into Google or Apple. In this case, the investment will be not only profitable, but also enjoyable: you can boast that you invested in a conditional Google at the dawn of its activity.

In real estate without a mortgage

Buying an apartment without overpayment and renting it out is an option of stable passive income. You can hardly live comfortably on rent, but this money will be a nice addition to your income. Moreover, real estate is an asset that grows in value. The main thing is to check that the house is not on the list for resettlement or renovation.

In health

Passive income is great. But if interest on deposits, securities and other investments can feed you, you have hardly faced financial problems before. For the rest, it will not be a superfluous goal to extend the working age.

After 35 years, the body begins to slowly but surely break down. Therefore, it is worth checking all important systems and continue to do this regularly. Dentistry is a separate line. Now the implants are inserted in mostly natural color, but for the price these are truly "golden" teeth. So go to the dentist and get the caries cured right now.

Investing is always a risk. But who does not risk and keeps money at home, he loses a percentage of the amount at least equal to inflation. According to the forecast of the Ministry of Economic Development, in the next three years it will be 4%. …

Storing money at risk, or storing it safely but ineffectively under the mattress - which way did you choose?