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We have to admit that money investments have always been one of the most appealing things in the modern world. You can make your money work for you while you don’t have to do much yourself. As we all know the old way of saving as much money as you can and then deposit it to a bank in order to receive a certain savings interest has to be considered (and it actually is) obsolete.

The reason is that indeed 20-30 years ago you could get descent savings interest rates from any bank which seemed a good investment. Was it a good investment though? You see in our modern economy there is a thing called “inflation” which means in simple terms that if you have 100$ this year and you can buy product A with it, with an inflation of 5% next year this product will cost $105. At the same time the bank offers you savings interest rate for depositing this money 3-4% which means that at the end of the year you will have $104.

Although we know that some years ago the banks were offering savings interest rates of 15-18% (which seems impressive), they did that in times when the inflation was 20%, because this is how things work: the saving interest rates are connected to the economy’s inflation.

This means that by having your money in the bank you never actually multiply it, although it seems that you do. The only advantage you have is that your money is there for you to take… if the bank is there. And that is a huge IF these days since we all have heard the news of big, well respected banks going bankrupt and honest hard working people lost their life’s savings.

On the other hand you have Money Investments meaning that instead of depositing the money you’ve saved in a bank, you use it to buy today something that will worth more tomorrow so you can sell it with a profit. It sounds simple but remember… simple does NOT mean easy since not everything will worth tomorrow more than today.

Even an investment that looks steady and with good potential, could go down the drain due to an unexpected reason.

However this shouldn’t disappoint us because it’s common knowledge that you cannot win every time… but there always is a way to win most of the times. What matters is that you can have returns of 20, 30, 50% or even more. This is how people make their money work for them and earn them more money.

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