Almost everyone earns money. Across the world, people use their skills to earn money required to pay for basic necessities- food, clothing and shelter and meet lifestyle demands such busying expensive smart-phones and cars.
Anyone who earns money will testify, it is much easier to spend than earn. Meeting expenses is easier than savings. But above all, investing money is most difficult task for everyone, unless they are financial experts or know how to make their savings work to earn more.
Fortunately, banks, NBFC and other institutions are aware of this common handicap of laypersons, when it comes to investing money.
Hence, they have created innovative savings schemes that allow people to invest small amounts of money and yet receive high returns. It is myth that investment is a luxury and privilege of the wealthy: anyone who can save a small amount of money can also invest it wisely to get good returns.
There are several ways to earn a regular income by making your savings work, while you go about the daily mundane routine. Here we explore some top time tested and proven ways to invest to earn monthly and regular income.
Top Investment Options
You need not have a treasure or mini-fortune to begin investing. It can be done by monthly deductions from your wages or by putting savings to work. There are several investment ideas that are universal. You can view some of these ideas online or get information from your bank or by approaching an NBFC.
Stock market is an excellent place to invest and earn considerable money every month or regularly. The good news is, you need not be an expert on stock trade or know about how shares of any company listed on the bourse are faring.
There are several stock brokers who will provide the information and trade on your behalf for a small commission. Investing in stock market has a major inherent benefit: you can withdraw money anytime, should the need arise.
In some cases, you may lose money if the stock market index and market capitalization is low on a given day. Generally, such lows are just passing phase unless the country is witnessing an economic depression.
Retirement plans available nowadays allow you to choose the age to start receiving pension. It is not necessary to wait till you have attained retirement age of 58 to 60 years. The amount of pension you get is directly linked to the total investment you have made in the plan over a period of years.
Pensions are paid every month through direct credit in your bank account or through checks. You can either spend the money or invest it elsewhere to earn more. Some pension plans offer a fixed monthly amount till your death or a fixed number of years.
The amount can far exceed your investment. Some pension schemes are even better: they offer an assured monthly sum up to a fixed age and later, return your investment.
Worldwide, speculation and trading in foreign currency is a favorite form of investment. It allows you to create a basket consisting of top currencies of the world and those not very popular.
Top currencies include American Dollar, Euro, UK Pound Sterling, Japanese Yen and Australian Dollar, among others. Not so popular but high earning currencies include Indian Rupee, UAE Dirham, South African Rand, Brazilian Real and Chinese Renminbi (Yuan), to name a few.
There are two ways to invest and earn regular income through foreign currency speculation and trading. The first one is by buying physical currency from exchanges and banks when prices are low and selling when they hit a high.
The other is by online trading of currencies. A lot of banks and brokerages offer online speculation and trading in foreign currencies. Foreign currency trading can get you good returns every month.
Mutual Funds are an excellent way to earn regular or monthly income. A Mutual Fund (MF) is nothing but a collection of stocks traded on exchanges. The MF provider buys a large number of stocks of different companies to create a mutual fund and offers it to investors.
This means, you are buying some stocks in many companies, which would not be possible or cost a lot of money if done individually. Mutual Funds are generally industry specific. This means, an MF provider will create a Mutual Fund by buying stocks of several companies involved in a particular industry like telecom, hospitality, infrastructure development, energy and myriad others.
You can buy MFs of industries that are witnessing high growth rate in your company at a fixed price. These can be sold after a fortnight or month or held longer to give you the desired returns.
Commodities are precious metals like gold and silver, crude oil, food grains and myriad other items that are traded daily and find uses in daily life. Their prices fluctuates according to demand and supply in your local as well as international market.
Investment in commodities is also excellent for anyone looking at monthly or regular income. Again, you need not have in-depth knowledge about prices of gold, silver, crude oil or other commodities and their price movements: there are several brokers and NBFCs who provide financial advice free.
You can also avail paid services where brokers keep tabs on the commodities market, advice on investment and trade them to earn you good returns. Similar to every other financial market, commodities trading also depend upon external circumstances such as demand and supply, political scenarios, conflicts and natural disasters and various other factors.
Similarly, dips in commodities market are never permanent. Prices do rise. It is possible to trade in commodities whenever you wish. It also offers easy exit.
Investment options for monthly and regular income vary in every country. Some banks allow you to deposit a huge amount of money and pay interest every month, quarterly, half-yearly or annually, depending upon your choice. In other countries, you can buy short-term fixed deposit certificates for a month and get back your investment with a small interest.
There are many investors looking at crypto-currencies such as Bitcoin for regular and monthly income. However, this is a very specialized field and for investors who have knowledge about this field.