Where to safely put or invest your money?
The question of where to put or invest your hard-earned money (somewhere that is immune to recession) is always in the mind of every people who want to have a safe place for their wealth.
Some suggest putting your money in a stock investment or most commonly, in banks through a savings or time deposit. However, experiences, especially in this time of financial crisis, show that neither stock market nor bank is a haven for your money. The value of stocks is volatile and very sensitive to the country’s and world’s socio, economic, and political condition. It will not guarantee you that you will get a higher or, at least, same value of money that you have invested after a certain period of time. The current crisis also shows that even banks can also collapse and put your wealth in peril.
I think there are at least three (3) investments or place to safely put your money;
1. Investment on a lot real estate. A land or lot is one of very few commodities that have no general trend of depreciation. Generally, its value always appreciates. Plus, as long as you have all the proper documents, no one can ever take that property away from you. Real estate, however, is usually, a huge investment and could be hard to manage during development stage or reselling.
2. Treasury Bills (T-Bills). If you don’t have a luxury of time to manage your properties, invest your money by buying treasury bills or T-bills. As far as I know, T-bills is the safest place to put or invest your money;
- T-Bills is not guaranteed by bank but by the Government. I believe that the government is stronger than any banking financial institution.
- The interest rate of T-bills is much higher than the time deposits in the banks.
- The Interest rate of T-bills adjusts with the inflation rate or CPI. Thus, there is a lesser risk of losing the value of your money.
3. Put your money on a safety deposit box. This is the laziest way to protect your money. With this, your money is safe against financial crisis and bank collapse. However, there are risks that it could be gone by physical means like theft. Also, its value will loss through depreciation.
Filed in: Other Investments
Local date: March, 2010