Modern man tends to be more interested in the possibility of passive income, since money lying at home doesn’t bring any profit and becomes devalued, especially during the COVID19 pandemic.
How to Make Money on Investments?
The secret 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 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 second year, your profit will be $134.4 instead of $120. Not 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.
Historical fact: 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 Over the course of the century $500,000 were withdrawn for public works.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 Using 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
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?
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 FBC FUND.
It’s an UK platform that provides the transfer of funds for investing in private areas, such as cryptocurrencies, ICOs, currencies, company shares and so on. That is, you just make a deposit and get up to 3% of passive income per day thanks for their FBC13 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 to become a partner and earn money by attracting new investors through the partner program. Invite friends, colleagues, acquaintances and get % of their deposits. You can build 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 — this will be your first step towards a good life!