How To Save Your Money And Grow Wealth

More important than entering the world of investment is to know how you entered this field. What is investment?

INVESTMENT

An investment it is an asset or item obtained for the purpose of generating income or appreciation. Appreciation refers to the increase in value of an asset over time. When an individual buys a commodity as an investment, his intention is not to consume it, but to use it to create wealth in the future. An investment always focuses on spending a certain asset today - time, money or effort - in the hope of obtaining a higher return than the initial investment in the future.

Tips for Investment Methods

How an Investment Works

Investment activities are designed to generate income and increase value over time. Investment can refer to any mechanism used to generate future income. This includes buying bonds, stocks or real estate. In addition, buying real estate that can be used to produce goods can also be regarded as an investment.

Previously, business consultant Layan Al-Salhi mentioned in a previous video about the “50-20-30 budget rule” theory. This theory is one of the best ways to save money, facilitate your life, and secure the future for you.

What Is the 50/20/30 Budget Rule?

The rule of thumb is to divide after-tax income and allocate it to spending: 50% on needs, 30% on wants, and 20% on savings.

Savings are one of the investment methods that do not return a large financial return, including current bank accounts and bank deposits. There are also deposit and documents that can be purchased.

1. Economic Investments

Economic growth is related to investment. When companies and other entities adopt good business investment practices, they tend to generate economic growth.

2. Investment Vehicles

Investment banks provide a variety of services to individuals and businesses, including many services designed to help individuals and businesses increase their wealth.

Investment banking can also refer to specific sectors of the banking industry related to the creation of capital for other companies, governments, and other entities. Investment banks issue new debt and equity securities for all types of companies, assist in securities sales, and help facilitate mergers, restructuring, and brokerage businesses for institutional and private investors.

In investing, it is necessary to know the way to divide the money, as we mentioned about dividing your income on the “50-20-30 budget rule” theory. There is a division of investment, so do not put your money in one fund, make it in several funds to reduce the risk.

When we mentioned the division of income at the beginning of our article, we said that there is 20% that we will use in investing and saving with it.

For example:

Suppose you collected 10,000, and the amount is divided by 10%, we put it in a current account in the bank, 20% we buy documents and deposits in the bank, or we buy gold.

As for the remaining 70%, we divide it as follows, 50% we put it in real estate, trade, and shares. 20% we use in the trading world.

Video of business consultant Layan M. AlSalhi. In Arabic, I explained everything about investment.

The world of investment is a beautiful and wonderful world, but you must know how to enter it and ways to use it, know its aspects and risks, understand the basis of investment and divide your money on it, so do not expect quick money, but wait and you will see the wonderful results.

⛔ Be smart and do not invest your money with anyone unless it is a reliable or company party with solid foundations and rules, and that there are papers proving your right so that your money is not lost.⛔