How to Invest Your Money?

How to Invest Your Money?


Let’s not be too quick to judge those who ask this question. Whether it is 1000 liras or 1,000,000 liras, people value their money. However, it is not easy to provide a satisfactory answer to the “What should I do with my money?” question. This article will attempt to offer brief and clear pieces of advice in this regard.


The short-term interest generally refers to “end of the month” and the long term refers to “end of the year”, neither investment experts nor economists can produce an answer that is appealing to investors. In real estate, on the other hand, things are bit different. Short term is called “end of year” and long term is called “1 year”. As a matter of fact, expectations began to drift downwards in 2018 Five years ago, TRY/USD exchange rate was 5.3, now it is almost 29 Turkish liras, similarly, gold price per gram was TRY 200, now it is TRY 1800. The bond yield, which was 8% during the pandemic, is exceeding 40% today. Landlords ask TRY 100,000 today for a flat that was worth TRY 10,000 during the pandemic. Inflation climbed up by 334% in 5 years. There is a huge gap between the official inflation rate and both wages and costs. I think we all agree that the CPI does not reflect the real figures.


If inflation remained stabilised, Turkish people would have the patience to wait for five years thus have the opportunity to grow their savings. However, since the prices of overall goods and services are constantly going up, they invest their money in short term products and buy whatever they need before prices increase any further. However, short-term investments do not tend to turn into profit, well, in the short term. On the contrary, investors risk incurring even bigger losses. A study by organisations such as S&P, Bloomberg and BOFA indicates that the longer the maturity, the less likely it is to suffer a loss. This finding is based on the long-term monitoring of strong companies’ performances in the New York Stock Exchange since the Great Depression.


Whether you invest in stocks, foreign currency, gold or land… If you were late to grab an investment opportunity in upward periods, you should be patient, because a calm period, or even a regression, will follow such trend. Do not beat yourself over it. Let others win too. ” And remember: “You make money when you buy, not when you sell”. It would be best to remain calm since investments made in a hurry often bring harm than good. Life is a long journey and it is very important to act calmly, and wisely, before you rush into making a decision.


Discovery is the door to great profit. Not rumours you hear from other people, but opportunities you locate through your own efforts often tend to lead to high profits. Accurate monitoring of a stock that has been quiet for a long time, a wise control of your spending and earning, a zoned land you discovered in a region open to urban development, profits you make amidst changing inflation and interest rates, or foreign currency and gold you buy after a long period of quietness can provide you with huge profits in a very short time. However, there is one detail you need to pay attention to when making such investments.


In Turkey, where the relative price balance is unsteady, the high cost of living and high costs will hurt your investment after a while, regardless of how much profit you actually make. Therefore, you must be able to tell your needs from your wants in times of high inflation. How will you know the difference between those two? Well, by seeing that every penny you spend turns into benefit. For example, before you go on vacation, always compare the rates of possible accommodations. if there is an accommodation deal that can offer you a better-quality service for the same money, choose that place. You do not need to skimp on money when it comes to having a good time. Just make good use of you money to make both yourself and those around you happy.


Don’t be addicted to any brand. Buy products that exactly meets your needs. Whatever you buy a television, a car, a bag, etc., choose the ones that are durable, functional, comfortable, smart, updatable and connectable. Try not to be influenced by advertisements, popularity, circumstances or your family and friends. Do not spend your money on things that will make you unhappy.


If you manage to do these, you will also manage to put some money aside. In fact, put aside now at least half of the money from a profitable investment for your next investment and wait patiently. To those who have difficulty withstanding the whims of their families, my only advice to them is to “resist.”


The best loan is the one you take out with very low interest rate when you don’t need it at all. Keep this in mind the next time interest rates fall to single digits. Years ago, a friend of mine took out a loan with low interest to accumulate the amount of savings he wanted to achieve in the future. And he constantly said to his family, “Don’t ask me to buy expensive things for you. I’m paying off a loan!” No one asked my friend “why did you get the loan?” since he and his wife had three children hence a lot of expenses. Today, my friend enjoys a comfortable life because, for five years, he trained his family to be self-sustainable and not to compare their lives to others’ in order to avoid being unhappy.


So, saving and earning is not only about investing your money but it is also about spending it correctly. If you use your money wisely, you will see that you will produce benefits for you and be happy, as well as make others happy. The purpose of life is not to be rich, but to be self-sufficient and happy.