In connection with the crisis, many citizens are thinking about where to invest their savings in order to get income and how not to lose their funds (inflation).
There is no single answer to the question of where it is better not to invest money. Each option has its own disadvantages. Nevertheless, citizens often purchase exactly risky assets, which subsequently do not bring profit. Let us consider the most popular and least profitable investments during the crisis. The greatest disadvantages have the following investment options:
Minus of such investment - the risk of losing your money in case of bankruptcy of the financial institution or as a result of inflation. Despite the fact that the deposit holder receives a certain percentage from the bank, which entrusted his funds, during the crisis this option does not save from the risk of devaluation and depreciation of savings. Important:
To protect yourself from losing money, citizens open several deposits in different banks. The minus of investment is the unpredictability of exchange rate fluctuations in the long term. Useful advice. It is advantageous to keep deposits in Russian banks, not only in rubles, but also in dollars and euros.
Since the depreciation of one currency may automatically mean that the other becomes more expensive, this investment option makes it possible to preserve your money during currency fluctuations.
There is no need to spend all of your savings on staples that have a longer shelf life. It is reasonable to have some food reserves, but you should not turn it into the main source of investment.
The downside of such an investment is that it will not bring profit. But if a citizen wants to get rid of the fear of hunger during a crisis, buying food products can, to some extent, contribute to emotional stability.
Many citizens believe that it is possible to make a good profit on the purchase of these assets. But it is not always possible to make a profit (especially in a crisis). At the moment of falling of quotations it is profitable to buy shares. But no one guarantees the growth in the value of the securities in the foreseeable future.
Besides, in order to understand peculiarities of stock market functioning, it is necessary to spend much time and efforts or pay professional consultants. Even these costs do not guarantee profit.
Over time, antiques and works of art become more expensive. The exception is the furniture, because gradually its shelf life is coming to an end. Jewelry, coins, paintings, clocks and other antique items become more expensive over time. Thus, the pluses of such investment is the constant growth in the value of Antiques.
The disadvantages are the risk of buying a fake or antique at an inflated price (or sell it at a reduced price). In addition, Antiques prices are growing slowly. To get a tangible profit from their sale, you need to wait more than one year. In times of crisis, when you may urgently need the money, you risk selling Antiques at the same value at which you bought it, or less.
Many car dealers will sell cars at discounted prices during a recession, and it's important to choose a car dealership that offers discounts. It is important to choose a car dealership, which offers the best value. The drawback of such an investment is the gradual cheapening of the car, the need for insurance and inspection costs.
All these variants depend on the financial possibilities of the citizens and their evaluation of the risks. Important! It is not necessary to invest in tangible assets. During the crisis it is important not only to save your savings, but also to improve your health and increase your employability in the labor market.
Let's consider the most profitable ways of investing. During crisis often it's not about multiplying finances, but about not losing them. In the situation of economic and social instability in 2021 the best investment is the one that will expand your possibilities without the risk of losing money. The most profitable investments include the following options:
Apartments, houses, and garages often become cheaper in times of crisis. Subsequently, the value of the property will rise again, then it will be profitable to sell it. The plus of investment is a steady increase in price after the crisis period. Minus - the complexity of the transaction, the additional cost of notary services, the need to pay fees for the registration of sale and purchase and income tax (13% of the realized amount). In addition, real estate with utilities requires payment of utilities.
One of the best investments is to buy gold, silver, coins or open an impersonal metal account. Despite the fact that it is almost impossible to predict the prospects of value growth over the long term, precious alloys are gradually becoming more expensive. In times of crisis, buying gold, silver and other metals, as well as products made of them, is a good way to save your savings.
Buying a land plot. Like real estate, it is one of the most reliable investment options in times of crisis. Unlike the owner of an apartment, the owner of a land plot does not have to pay for utilities. The object of investment cannot be lost due to fire, explosion, it can not be destroyed as a result of a municipal accident. Also, the land can be used (depending on its purpose) not only for the subsequent sale, but also to build a house, agricultural activities. When buying land it is important to consider the possibility of connecting gas, electricity and running water.
One of the best investments is improving your skills or acquiring a new profession. During the crisis in 2020, when many professions are becoming unclaimed, travel agencies, retailers and other businesses are closing down, it is important to play it safe and become a specialist in a field that can be relevant in a situation of economic instability.
Many citizens are beginning to learn a foreign language, design courses, programming, etc. Everyone decides which professional field to invest in, depending on his personal preferences and projected income.
One of the main capital of the modern market is human. And one of the main values of each worker is his knowledge, professional skills and abilities.