Starting A Residual Income Business

Have you ever considered to turn your residual income into a residual income business? Once you have paid off all your dues in a month, you may have some money left in your bank. We assume that you have paid off your mortgage, insurance, college/school fees, community fees, utilities, car loans, EMIs on loans you have taken. Before you start thinking of using it for making more money out of that residue, consider first whether you can use that leftover to repay a part of the loan you may have taken.

Letting the residual income remain in the bank is generally the safest. But the interest it earns in the bank is considerably low. The only good thing is safety for your money. If you are the type who would like to see that your additional, or residual income, to earn its keep, there are ways of doing that.

In today’s global economy with lesser regulations on movement of capital or funds, you can invest in other countries that offer higher rates of interest or return on stocks than in your own country. For instance, you can think of investing in an investment fund that is investing in stocks in emerging markets like China, India, Malaysia, or other countries which are on the fast growth track.

Consider mutual funds. They have a diversified portfolio of investment, based upon their intensive research and vast reach. You need to check out their performance over a period of time, to gauge their performance. Their net asset value is an indicator of their health, so too their portfolio of investment. The good part is that they are required to disclose to their investors periodically. Most of them require minimum amounts for entry.

Simply handing them over to an investment banker/counselor is not enough. You too have to do your own homework. If you have invested in stocks, you need to keep abreast of the way the stock is moving in your market, or, if you have invested overseas, you need to keep an eye on the various developments taking place. You can find them generally in your newspaper on the business page, or, you can simply look it up on the internet.

In the forex market, if you are allowed to play, remember that you are a small player. The giants who move the markets are the Governments of the various nations. The best way would be to join a group of investors and take a long or short position. There are proprietary software that is available that allows you to auto-pilot your stakes in the trading. To take advantage, you need first to put in small amounts and see how you work with it. Take a lesson from one of the traders. Or, better still, buy a book that would help you understand how the currency market works. While the gains can be high, the stakes of loss are higher. Take care when you enter this arena.

The forex market is now another area where individual investors are now allowed. Check your country’s rules and regulations. There is big money to be made. Of course, you too have to put in a minimum amount. Check how much is required for you to start. If you have it, well, there are a lot of players, and a lot of software that allows you to play the market. To learn forex trade, Investing in a good book would be useful. Take the help of a forex trader known to you or your friends. You are a small time player in this market. The market movers are governments, the banks and the MNCs.

Investing in the stock, bond, and forex markets can make your money work for you. Protect yourself in the beginning is by taking small positions, keeping your residual income for short term periods in the markets you choose. To choose the investment strategy for you, taking the advice of an investment counselor is best. While it may be expensive in the short term, in the long term you stand to gain.

Source: Artipot.com

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