People now tend to be more interested in passive income, since money simply laying at home doesn’t bring any profit and risks to be devalued, especially during the global pandemic.
How to Make Money out of Investments?
The secret to that lays in the capitalization of interest. Reinvested profits significantly improve the rate of return, increasing the deposit exponentially.
Here is a simple example:
If you put $1,000 in the bank at 12% without capitalization, you will get $120 profit in a year. If you invest $1,120 instead of $1,000 in the next year, your profit will be $134.4 instead of $120. Doesn’t it look impressive?
Okay, then let’s assume that this money has been in the bank for 50 years:
- In 3 years – $1,400
- In 4 years – $1,570
- In 10 years – $3,100
- In 20 years – $9,640
- In 30 years – $29,960
- In 40 years – $93,050
- In 49 years – $258,040
- In 50 years – $289,004
If you were to withdraw interest annually, you would only earn $6,000.
If the interest was to be added to the deposit every year, after 50 years you would earn $289,004! Using the capitalization of interest, over 50 years you would have your deposit multiplied by 289 times. Don’t forget that you would have exceeded the yield of 6,000 standard units by the 16th year of investment.
History time: Benjamin Franklin, the person depicted on the hundred-dollar bill, knew how to make money on investments, and put $5,000 into his bank account in 1791. He bequeathed this money to the city departments of Philadelphia and Boston. But the terms of the will weren’t that simple: the authorities could withdraw the money only after 100 and 200 years. Over the course of the century $500,000 were withdrawn for public works. In 1991 $20,000,000 were received.
Not so many people are ready to wait for 50 years, so the investment arsenal can be supplemented with two types of weapons: an increased rate of return and a monthly additional investment. If in the example above the rate of return wasn’t 12 but 20%, the total amount would grow to $9 million. If we left 12% per annum, but added $1,000 per month, the total amount would exceed $39 million.
How Much Can You Earn on Investments with Additional Tricks?
Let’s say we have $1,000, we get 7% of profit per month, capitalize interest, and add $100 each month.
Our deposit will grow as follows:
- after 6 months — $2,216.06
- Year 1 — $4,041.03
- Year 2 — $10,890.02
- Year 3 — $26,315.26
- Year 4 — $61,055.86
- Year 5 — $139,298.31
Amazing results, considering the initial capital of $7,000 and regular additional investments in the total amount of $6,000. Even if you take the initial deposit of $1,000 at 6% per month and just reinvest the profit monthly without adding anything, the results will be as follows:
How to Make Money on Online Investments?
Surely you will ask, where can I find such a yield? You need to look for it where these figures were confirmed on the real people’s worth. Look at the Warren Buffett’s yield chart:
It’s very similar to the calculations above, isn’t it? Such profitability is provided by almost all financial markets. Many people avoid them, but nothing changes in their life — they earn money only as long as they work.
Now let’s move on to making money via investments in the Internet. There’re different ways to do that, and one of them is trust management in financial markets. A specific example is the FBC FUND.
It’s a UK-based platform that provides the transfer of funds for investing in private areas, such as cryptocurrencies, ICOs, currencies, company shares and so on. You just make a deposit and get up to 3% of passive income per day thanks to their unique FBC14 algorithm. The main thing is to take a responsible approach to choosing a manager and forming an investment plan (to invest in several plans at the same time).
The platform also offers its users the partnership program. It’s an opportunity to earn money by attracting new investors. Invite your friends, colleagues, acquaintances and get % of their deposits. You can create your own 10-level structure inside the platform. If you still can’t decide on your first investment, try starting with a small amount (at least $100): it will give you an opportunity to understand how the system works — it’ll be your first step towards the life you dreamed about!