People nowadays tend to be more interested in passive income, since keeping money at home doesn’t bring any profit and even becomes devalued, especially during the global pandemic.
How to Make Money on Investments?
The key to accumulating large amounts of money is in the capitalization of interest. Reinvested profits significantly improve the rate of return, increasing the deposit exponentially.
Here is a simple example of making money on investments:
If you put $1,000 in your bank account at 12% without capitalization, you will get $120 profit in a year. If you invest $1,120 instead of $1,000 in the second year, your profit will be $134.4 instead of $120. Not impressive?
Alright, let’s assume that this money has been in a 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! With the capitalization of interest, over 50 years you would have your deposit multiplied by 289 times. Keep in mind that you would have exceeded the yield of 6,000 standard units by the 16th year of investment.
History time: Benjamin Franklin, the person from 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 were tricky: 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 Over the course of the century $500,000 were withdrawn for public works. And in 1991 $20,000,000 were received.
Not all of us are ready to wait 50 years, so the investment arsenal can be supplemented with two types of tools: 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 Using Additional Lifehacks?
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:
Half a year — $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 Impressive 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?
Where can you find such a yield? You need to look for it where these figures were confirmed on the real people’s worth. Look at Warren Buffett’s yield chart:
It looks like the calculations above, doesn’t it? Such profitability is provided by almost all financial markets. Many people avoid them and nothing changes in their life — they earn money only as long as they have a job.
Now let’s move on to online-investments. There’re different ways to do that, and one of them is trust management in financial markets.
An example of them is FBC FUND. It’s a British platform that provides the transfer of funds for investing in private areas, like cryptocurrencies, ICOs, currencies, company shares and so on. You just make a deposit and get up to 3% of passive income daily due to their unique RJVX13 algorithm. It’s important to take a responsible approach, though. You should choose a manager and an investment plan (the key is to invest in several plans simultaneously). The platform also offers its users to become a partner and earn money by attracting new investors through their affiliate program. Invite friends, colleagues, acquaintances and get % of their deposits. You can build your own 10-level structure inside the platform. If you’re still hesitating about your first investment, start with a small amount (at least $1000): it will give you a chance to understand how the system works.