Manage Your Funds Better With These Simple & Effective Financial Instruments

Do you talk about that ¡®dream home¡¯ often?

How long have you been planning that EuroTrip?

And what about that limited edition bag you love?

In this modern world, we have our eyes on the choicest of lifestyle experiences - some of which may be rather heavy on our pockets. And that¡¯s when we wonder - if only we could generate some additional income, or multiply it maybe?

Binomo

Worry no more, we made a list of 4 effective ways to get additional income -

1) Real Estate

Let¡¯s start by discussing the tried and tested investment strategy - putting your funds in real estate. If you have a deep knowledge of the local market, you can make huge profits by buying property at below-market prices. Being an asset that appreciates in value and offers a steady flow of income (if you¡¯ve rented your property) - real estate makes for a good choice.

iStock

However, there are 2 sides to every coin and real estate investment has its drawbacks too - for starters, the rent can vary based on the economic climate. It is also regulated by the rent control laws issued by the local government. Lastly, the investment is not fluid - you can¡¯t sell off the property on short notice when you¡¯re in immediate need of funds/income.

2) Invest In Gold

Gold is one of the most popular assets. It can hold its value for a long duration of time, and even with a dip in the gold rate, the base price remains satisfactory. An advantage of investing in gold is that it¡¯s a liquid asset - it can easily be converted to cash whenever you¡¯re in need.

iStock

However, unlike stocks and bonds, gold doesn¡¯t yield a regular additional income in the form of interest and dividends. You only earn from gold when you sell it. Additionally, storing physical gold safely is a mammoth task, and bank lockers incur maintenance costs.

3) Systematic Investment Plan (SIP), Fixed Deposit (FD) & Other Options

A growing majority of people are putting their money in SIPs which thrives on the power of compounding. SIPs require a monthly deduction, thereby making the person a disciplined investor. It is a flexible investing option where you can alter the sum based on the increase or decrease in your income. Moreover, SIPs don¡¯t take a major hit in case of market fluctuations, as investments are not directly made in the stock market. Even so, SIPs take a long time before they can render any profitable outcomes.

iStock

Moving on, Fixed Deposit (FD) is a very common option among first time investors. Compared to saving accounts, FDs offer much higher interest rates and the risk factor is very low. They offer a fixed tenor (minimum 6 months and maximum 5 years), which ensures that you get reasonable returns on the investment.

However, withdrawing your FD before the maturity date can lead to penalty - thus making is score really low on the liquidity quotient. Moreover, the interest earned comes under the taxable slab of your income - thus hampering your overall ROI.

4) Trading

Another financial tool that we¡¯d highly recommend is ¡®trading¡¯. Unlike investing, it thrives on short-term strategies to make daily, quarterly or yearly additional income.

If you¡¯ve been wanting to try your hands at trading - ¡®Binomo¡¯ is the place for you!

iStock

It is an online platform that aids easy investments and trading without having to contact an agent. Founded in 2014 and spread across 133 countries, Binomo offers trading on 70+ assets, has a comprehensive help centre, a demo account to practice risk-free trading, and many other features that make it a trustworthy platform for beginners and experts alike.

The best part? Unlike investing in gold or real estate, Binomo doesn¡¯t require a large amount to start with. The minimum sum authorised for deposit is just INR 350, and the minimum investment is INR 70.

What¡¯s more? After registration, the user gets access to Binomo¡¯s ¡®Demo Account¡¯ with USD 1000 (appx INR 76,181) as virtual funds. This is your chance to use your trading/investment acumen and take calculated risks in a safe environment, without the threat of losing actual funds. How cool is that!

The other types of accounts on Binomo include Free, Standard, Gold and VIP. Click here to learn more about them.

Regulated by the International Financial Commission, Binomo is a reliable trading platform. It uses SSL protocol, which ensures that all the data is encrypted.

What is your go-to financial instrument to generate additional income? Let us know in the comments below!

Disclaimer: Operations with OTC financial instruments are associated with significant risks. Before trading on the platform, the client needs to analyse their financial capabilities.