In this article, we will share our thoughts on where to invest personal savings for citizens of Ukraine. Domestic experts willingly shared their opinions with us about the most profitable and almost win-win options. Keeping money in caskets and under mattresses is a thankless task. If we are talking about a long storage period, they can corrode corny, turn yellow or become damaged by parasites.
In addition, when storing large sums of money at home, every homeowner risks being robbed and left without money. It is for these reasons that people think about what to do with their savings. A question of this kind is tormenting those who have these same savings. Indeed, many fellow citizens live from salary to advance payment and are forced to even borrow money.
How do we relate to bank deposits
A whole generation of people felt themselves deceived investors in the collapse of the USSR. All their lives they firmly believed that their money was stored in a safe place, and in a terrible dream they could not assume that the time would come when they would be robbed by the very state for the benefit of which they had been working for decades.
The opinion that banks can cheat was passed on to their descendants. Now a huge number of our fellow citizens are quite skeptical about the prospect of opening deposits. If they also receive wages on plastic cards, they are in a hurry to withdraw the entire amount from the ATM as soon as possible and put it at home in a secluded place. In other words, we do not trust banks.
The amounts that are stored in the lockers of our compatriots reach several billion dollars. It is noteworthy that this is approximately twice as much as the reserve of the National Bank. Many compatriots are sure that money should work and generate income. But they do not know who to entrust their money to, therefore they prefer not to risk it. And this is despite the fact that inflation just eats away on the go. Prices are rising right before our eyes. It turns out that all incoming amounts must be spent immediately, until they have depreciated. Another question, on the purchase of which goods and services?
No matter how difficult the situation in the financial markets, the options for where to invest are more than enough in Ukraine. Of course, some investments can be made only by competent specialists. It’s quite difficult for a person without financial education to understand all the subtleties. Moreover, our compatriot is used to not believing anyone. For this reason, many prefer traditional ways of managing their wealth. But more on that later.
So, we have chosen the seven most effective and affordable investment options. These include:
- opening deposits and buying foreign currency;
- acquisition of real estate, including land;
- purchase of precious metals, primarily gold;
- acquisition of antiques;
- stock transactions;
- currency exchange manipulations;
- payment of own education.
Most of our compatriots firmly believe that the national currency will depreciate in the future. And it’s hard to disagree with them. Although dollars and euros are also subject to inflation, their level is not comparable with the hryvnia. Therefore, if a person has any income, he is in a hurry to buy dollars, euros and pounds. Of course, if you put the purchased currency on deposit, it will bring additional income, albeit small. You can choose a bank with foreign capital and entrust your money to him. But it should be remembered that such reliable financial institutions will not offer large percentages, especially in currency.
A traditional and proven way of investing is the purchase of real estate. He is not in doubt or skeptical. Everyone is sure that apartments, land and houses will only go up in price. There are fluctuations in the real estate market that are most noticeable during a crisis. But if we talk about the long term, then the cost may increase many times over.
The disadvantage of this investment option is that it is only suitable for people with significant amounts of savings. For those who save money from each salary, this method is not interesting. In addition, it must be remembered that any real estate object involves expenses. Both the apartment and the house must be maintained in order, which requires additional investment. If such an object is leased, it will bring additional profit. The most successful investment will be the purchase of real estate at the peak of a fall in prices, followed by delivery to tenants at market value.
If we talk about real estate, a good option is to purchase construction in progress. If its owner realized that it would not be possible to realize his plan, he is ready to sell the unfinished building in order to at least somehow return the money spent. A buyer who understands construction issues can earn up to 50% of the invested funds. But this option is not suitable for everyone. It is good for those who have experience in construction and have enough savings.
Where to invest in Ukraine: precious metals
By investing in precious metals, you can only rely on profits in the long run. This is a very reliable option, but to engage in such investments, you must have an impressive starting capital. Gold may situationally lose value, in addition, the difference between buying and selling completely eliminates income if you sell bullion after a short period of time. Buying products from precious metals is a dubious thing, because when they are sold they are accepted at the price of scrap.
Where to invest in Ukraine: the acquisition of antiques
Investing in antiques, art-related items is an activity for people who are well versed in current market trends and can be sure that they are acquiring truly valuable things. It is possible that in an effort to profitably invest capital, such a person will become a victim of fraudsters who will offer him ordinary fakes. It is necessary to turn to the services of professional experts, which will also cost a significant amount.
Shares and Securities
Investing your money in stocks is an expensive undertaking. In order not to burn out, you need to have work experience, intuition and a strong nervous system. It makes sense to trust brokers, but they too can be mistaken, especially in times of crisis. This type of investment is popular in developed countries, but in Ukraine it is at the initial level. The general financial illiteracy of the population does not leave him any chances so far. Do not rush to invest savings in participation in currency exchanges. As a rule, a person without proper experience burns out, losing all the initial capital.
Investment in education
In the event that our compatriot has the abilities, willpower and firmness of character, the most profitable and win-win way to use capital will be investing in his own education. The knowledge gained, if improved and enhanced, will benefit all life.
Summing up the results of this article, we can conclude that today the most understandable and real way of investing money for the average citizen is to open a deposit in the bank. At the same time, it is advisable to give preference to state institutions that guarantee the safety of deposits in full. Here you can determine your income and the timing of their receipt for sure, which can not be said either about investing in stocks, or about investing in antiques, or about participating in the game on currency exchanges.