Investments That Don't Cover for Inflation

Investing is one thing a lot of people preach and some people even sell the idea of investing to the regular average earning people and when we hear this things, we are willing to put in every of our funds into investment programs which we aren’t certain about but rather hope that we make profit. Investing is the act of putting money, time and/or effort into a thing, commodity, or business with the aim of getting profit. The aim of investing is making profit so when profit isn’t made, it becomes a bad investment. There are good and bad investment and good investment bring returns while bad investment d the entire opposite.

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Investment to Avoid

Bonds

I am sure you are surprise? Well, generally bonds aren’t bad investment, but their returns are very low and fixed compared to investing in stocks. Bonds usually have a fixed amount of return but in most cases, it could give a profit of 1% to 3% annually but from an investors view, it doesn’t meet with inflation which means based on value, the investor is losing more money as its return is lower than that of stocks. Bonds can be used to secure funds during a downtime, but it is not used to generate wealth.

Certificate of Deposit (CDs)

People call it fixed deposit/certificate of deposit, in this type of investment, the bank gives profit for leaving money with them without toughing it for a specific time. Just like bonds, certificate of deposits do not fetch high income which means they can be affected by inflation making the value of the money remain the same or lesser when out of the investment, which is not what you would want.

Artifacts

A lot of people invest in artifact but unlike the rich, they do this with their spare money not their money for businesses and investment as they know that it has a market where its price is determined by the amount people are willing to pay and not the amount it is worth. Furthermore, this type of investment does not bring in hourly, daily, weekly, monthly or annual income, rather it must be kept for more than 10 years to expect an increase in price.

Conclusion

Unlike investing in these things that are used to preserve funds, there are better things to invest in to get good returns, example stocks, businesses, options, commodities, real estate and many more. Thanks for reading, do have a good day.