A pile of money...

I've been thinking about investing for quite some time now. In the summer of 2015 I went to ,Oh, ever so sweet Hawaii. I went there to spend my summer, but as an east-european from the lower class, I had no money  that would keep me alive on Hawaii for 3 months. So, the first thing I did was create a resume and went from door to door, from one shop or restaurant to the other until I found "The Shore Bird Restaurant". I worked there for over 2 months, that was my vacation :D Work and fun go hand in hand. The pay was okay and once I returned to Estonia, I managed to save 2000$. For the next year I did nothing with this money which I already regret. If I had been smart, that 2000$ could already be 2500$ for example. Instead I left it idly on my bank account and slowly decreased its value, withdrawal after withdrawal.

Let's talk about investing and why it's reasonable

Investing in something requires free resources like free time or free money. How do we create free time? We cut corners, maybe there's something in our schedule which isn't worth doing, maybe we can shorten some activities etc. and there you go. By freeing up an hour or two each day and using that free time to learn something new, creates new possibilities and opportunities in the future. No matter what you invest in, always think how it will benefit you in the long run. May it be an instrument, learning a language, sports or teaching yourself the basics of stock exchange - somehow it has got to be worth it.

Creating a small amount of money to invest goes exactly the same way. Maybe we can take the bus or bicycle to work and sell our car(a car usually takes a big amount of income just to keep and doesn't offer much in return if the workplace is near), buy cheaper food, don't go out drinking this month or free up a room which could set up for rent at "airbnb.com" and etc. All those little things add up in the long run and we are left with a good bit of precious money. Even Warren Buffet started the same way, by working his ass off selling newpapers from door to door and living under his means. (Granted, he was an investing genius at the age of 10 already.) Becoming rich is not an easy job, nor is it fast or luxurious. The reason most people never get rich in their lifetime is very simple: they are impatient and want to live over their means by using credit cards and loans. 

But how much should we save for our investments? 

Any amount is enough. What matters is that we start. A really succesful investor in Estonia is Jaak Roosaare. After reading the books of many famous investor like W. Buffet or J. Templeton, he recommends investing at least the same amount as you spend, which means 50% of your income at a minimum. This means that you have to treat your money wisely. A 50% saving means that even if you can't figure out what to do with your money right now, it will still accumulate pretty fast and create wealth. Secondly, it discourages you from spending money on unnescessary things. For every dollar you spend, you'll have to work twice as hard. Third, with a big pile of money in your pocket investing seems much more interesting and rewarding, doesn't it. And last but not least, it builds character to live well under your means and avoid the temptations. The money you save for investing is money YOU DON'T NEED to survive.

Where can we invest our savings? 

You have obviously heard of stock markets, loans, crowdfunding etc. These are all places where there's a possibility to make money.

Stock markets. A stock represents a small part of an company and shows who it belongs to (if you buy a stock, it's yours). A stock aka a share doesn't have a fixed value, it fluctuates with the companies estimated value. By having stocks from companies X, Y and Z, you are a shareholder for those companies, part-owner of those companies. You can make money either by selling and buying shares or by holding onto those shares and get dividends - when a company makes profits it can reinvest that money into the company and all shareholders get rewarded for that based upon how many shares they hold.

Investing in stocks can be profitable or devastating. Those who bought shares in 2007 may still pay the price, yet those who did it after the crash in 2009 may have had a really good time. It's all about timing and background research - to figure out which companies keep growing and pay dividends and which don't, to see where the market is going.

Crowdfunding - P2P lending. Investing in P2P loansites is made very easy nowadays. The process is quite easy to understand. Lets look at Mintos.

How it works: https://www.mintos.com/en/how-it-works/

"Mintos is a peer-to-peer lending marketplace that brings together investors looking for solid returns with borrowers of non-bank loan originators. At Mintos investors can invest in different types of loans originated by many different loan originators. On the other hand, loan originators, that traditionally have been balance sheet lenders, by connecting to the Mintos platform can reap the benefits of peer-to-peer lending model in funding their loans."

"This is how it works:

- Borrowers apply for a loan at the loan originator.

- Loan originator evaluates the application, sets an interest rate and lends money from its own funds.    

- The loans are then listed on the Mintos platform, where both individuals and institutional investors   can select loans to invest in, thereafter receiving monthly principal and interest payments."

Real estate. What's easier than to buy a cheap apartment or house, renovate it and start renting it out. This comes with its fair of share of risks and responsibilities too and isn't considered as a real way to earn passive income, yet it certainly sounds attractive to collect money from the inhabitants of your lands, like a medieval lord. It may be difficult to find tenants/inhabitants, they might turn out to be scammers - won't pay or leave. The laws are sometimes quite tricky regarding tenants and real estate requires constant care. It might be pretty profitable to own a small apartment in the city center and use Airbnb to rent those places from one night to a week at a time. And last, there's also the possibility to just buy land and lend it to farmers for farming or hope that stretch of land might get valuable and desired at one point.

Now, before you rush into the world of investing, it's highly recommended to start with your time. Educate yourself how things works, where the risks lie, how to avoid them, what the best investment plan for you would be. Once the money starts growing, it usually doesn't stop. The more you invest, the more money you'll earn, cause money attracts new money, it's how the system works. With an big enough portfolio your yearly earnings as an investor might cover all your living, which means financial freedom. There's no need for a daily job. This is what I consider to be the first goal to reach when investing.

What about means other than money? 

Well, what is it what we do here on Steemit if not investments of time and for some, money. Think we all agree Steemit is the new hot thing right now. The potential to make it big is great. I come to Steemit each day and try to post 4 times a day. With time my posts get more elaborate and thorough which will benefit me in the long run. What if I'll struck gold with this post and whales would recognize my value to the community. If I'd copy-paste articles or make short meaningless posts each day, that would backfire in that case. The time I spend here is an investment I make to the future. I educate and develop myself. It doesn't matter if I succeed or not on this platform. What matters is what I get in return and I've already concluded that even if I don't make a dime, the value of learning to write and think in English is very valuable in itself. (I've already translated for @kencode which made me ~500SD, for me that's more than enough to stay motivated.) If Steemit isn't your thing, there are many alternatives. What sells in this day and age on the web is being original and hooking the crowds. That's why I'll also try my luck on youtube shortly. What will I do? Remember originality, that's why I can't tell you, maybe someone beats me to it. :)

I don't think making money on the side is that much of a difficulty anymore, thanks to the internet. So what is it, that really matters if I want to be a millionaire, a star, a succesful investor or anything else? Well, it simple. JUST GET STARTED! No overnight success story is born overnight. Everyone who's successful will tell you, it's about doing the things you believe in every day, even if you'd want to give up most of the time.

To answer the question, why you should start investing, I'll answer simply: so you can start living the life you want, if you feel like your current life doesn't make you happy.

It's easy!

Thanks for reading!

Check out my other blogs:  https://steemit.com/@sulev

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