UNDERSRANDING HOW TO MANAGE MONEY - Part 3

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Investment which is also a form of savings is the act of releasing capital in expectation of generating income or profit from the use or appreciation of the material invested.

Money can be invested by purchasing marketable goods ahead waiting for an increment in the price of the commodity or product and then sell it out to make profit at the end of the sale. Money can also be invested as well by purchasing shares in companies or any established organization.

Buying of shares refers to the act of using money to purchase a portion or percentage of the companies or organization worth for some period of time majorly a year in most organization most especially banks and at the end of the year, the profit or revenue generated by the company is distributed between the shareholders according to each of their share percentage.

Money can also be invested using banks mostly commercial banks. Anybody with money that he or she wants to keep for use in the future and generate income within that time can walk up to any bank of his or her choice and create an account with the bank probably fixed deposit account and keep the cash for any stipulated period of time.

While the money is saved, banks continue to add interest each month, after all this, when the fixed time arrive, he or she can withdraw his or her money together with the interest added to it which turns to be a profit or an income for him or her.

Man power can be invested in such a way that, he or she can make decision to use his or her power or energy and time to work for someone else and get paid after the service has been rendered. Work rendered to someone is also a source of investment because he or she get return for the services rendered to the person and therefore, make income.

Assets like Houses, cars, any form of machines and equipment can also help as means of investment. When a house is built by someone’s savings and then rent it out to anyone else, the person that rent it have to pay for the rent monthly or yearly due depending on their agreement and then ought to generate more income for the landlord that rent the house out to the tenant.

HOW TO DEVELOP ATTRIBUTE OF SAVINGS IN ORDER TO MANAGE MONEY WELL

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Every individual have to relax and manage or run his or her expenses in proportion to his or her income or profit. Every individual should note the way and manner of generating his or her savings either by investments or shares buying. Savings have a very low tendency of risk of loss because money saved or material saved can not make any income or loss only for the circumstance of robbery which may be as a result of carelessness of the person concerned.

If anything happens to the savings of anyone in the bank, the bank will be the one to bear the loss though investment is a game of chance that is it can yield profit and it can as well make a loss, If the business invested business should run down, the investor may likely make a loss but if the business should yield well and smoothly, the person will definitely make income in relation to the invested money.

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