Probably everyone has at least once in their life wondered: how to make money doing almost nothing? Is it even possible? Absolutely! Investing is one of the most frequently mentioned tools to achieve this goal. It's no wonder that more and more people are looking for ways to profitably use their savings. So, where is the best place to invest? This can include real estate, stocks, bonds, loans, commodities, and other financial instruments, which we will discuss in more detail in this article. Whether you are a beginner or an experienced investor, you will find ideas here that will help you consider where your money could grow most efficiently, taking into account your needs.

What are Investments?

Investments are an economic process in which individuals, companies, or states allocate capital to certain projects, acquire securities, real estate, or other instruments, expecting them to generate a return over time.

Investments are beneficial for various reasons:

Provide an opportunity to increase savings;
Help protect capital from inflation;
Allow for passive income (e.g., rent);
Help companies expand, create new products or services;
Strengthen competitiveness among businesses;
At the national level, stimulate economic growth, create jobs, and increase the country's gross domestic product (GDP).

Investments can be divided into various categories. Popular examples include: stocks, bonds, cryptocurrencies, investment funds, real estate.

How to Invest Money?

First, accumulate a financial reserve for a "rainy day." It is recommended that it be equal to 3–6 months of income. Now you can invest your surplus money:

It is recommended to start by learning about types of investments, their differences, key terms, etc. Listen to podcasts, read books or blogs, watch YouTube videos, and accumulate knowledge in other ways.
Determine your investment goal. Do you want to save for your children's future? Or are you aiming to ensure a comfortable retirement? Setting a goal will help you choose the right investment instruments.
Consider your risk tolerance level. This will help you choose an investment strategy.
Now it's time to start investing. It is recommended to choose several different instruments to reduce the risk of losing money. Choose a reliable investment platform or broker.
It is important to remember that you can start investing even with small amounts, so you don't need to wait for the "perfect" moment. Stick to your chosen plan and try to be guided by emotions as little as possible.
Periodically review and evaluate your investments, for example, every 3–6 months. If you think it is necessary, reorganize your investment portfolio.

TOP 10 Investment Ideas: Where to Invest Money

If you are considering where best to invest in Lithuania, we offer you 10 popular ideas that will help you achieve your desired goals. These are investments in personal development, real estate, loans, starting your own business, investment funds, stocks, bonds, commodities, cryptocurrencies, and works of art.

Investment in Personal Development

Investing in personal development is a fairly common choice. This can include various courses, seminars, training, etc. Investing in yourself does not bring direct income but provides many benefits by helping to deepen knowledge and improve skills in a certain area. It can help climb the career ladder, get a better-paying job, create new jobs, etc. Personal development often also builds self-confidence, critical thinking, leadership, and other abilities that are crucial in today's labor market. However, as we mentioned earlier, it can be difficult for people to estimate the return, unlike other investments.

Investments in Real Estate (RE)

Investments in real estate (RE) have various advantages:

In the long term, real estate usually appreciates.
Renting out real estate can generate regular income.
It is an excellent tool to protect money from depreciation.

The main disadvantages of RE investments:

Low liquidity, as selling real estate takes time.
Usually requires large initial investments.
RE rental requires continuous maintenance and time commitment.

Real estate investments can be attractive to individuals who have accumulated a significant initial capital, are looking for long-term stability, and want to ensure a steady income.

Investments in Loans

Investing in loans through crowdfunding platforms has become an extremely popular choice in recent years. It has various advantages:

High returns.
Relatively short investment period (usually 6–12 months).
Low initial investments.
Auto-investing option.

The main disadvantages of investing in loans are the risk of losing funds, limited liquidity, and dependence on the chosen platform.

Investments in Starting Your Own Business

Investments in starting your own business are quite risky but also have the potential to bring high profits. The main advantages of such a decision:

Potentially high returns.
Control over decision-making.
Opportunity to realize existing ideas.

Investments in starting your own business also have various disadvantages. First, statistics show that a large portion of startups fail within the first 5 years. Thus, such an investment is extremely risky. In addition, owning a business requires active management, continuous improvement, and a lot of time commitment.

This can be a suitable choice for individuals who are prepared to dedicate a lot of their time, have a high-risk tolerance, have a clear (and potentially successful) business idea, and a financial cushion.

Investments in Investment Funds

Investments in investment funds are a popular form of investment where investors buy fund units and thus become co-owners of a securities portfolio. The fund is managed by professional managers who make decisions on where and how to invest the funds. This can include investing in stocks, bonds, real estate, and other financial instruments.

Investing in investment funds has several advantages:

Diversification. Since investments are made in different assets, the risk of losing money is reduced.
Professional management. Funds are usually managed by experienced financial specialists, which is especially beneficial for beginner investors.
Liquidity. Open-ended funds can be sold at any time.
Small initial amount. It is usually possible to start investing with a small amount, e.g., 100 euros.

The main disadvantages of such an investment:

Funds charge annual fees, which reduce the investor's return.
Less control, as specific investments are chosen for you by the fund managers.

Nevertheless, an investment fund can be an ideal choice for individuals who do not have much experience or time for investments, seek to diversify them, and are looking for long-term investment instruments.

Investments in Stocks

This is one of the riskiest, but also potentially highest-yielding investment solutions. To be successful in the stock market, it is important to constantly keep up with innovations and be able to change strategy, so such an investment requires a considerable amount of time. For beginners, this is an extremely risky choice.

Main advantages of stock investments:

High return potential.
Simple and fast buying process.
High liquidity.
Does not require a large amount.

Some disadvantages of stock investments:

High price volatility.
Requires a significant time commitment and knowledge accumulation.
In Lithuania, profits from stocks are taxed at 15% GPM (Personal Income Tax).

So, while you can get extremely high returns, consider whether you will be able to calmly accept the high risk of losing funds.

Investments in Bonds

Bonds are usually issued by governments, municipalities, and businesses. This is a stable and low-risk investment, making it suitable for many individuals. When you buy a bond, its issuer undertakes to return your invested money along with interest after a certain period of time. Unfortunately, it is important to note that low risk also brings with it a low return.

Main advantages and disadvantages of bond investments:

+Low risk.
+Ability to diversify investments.
+Easy accessibility.
+Often pays regular interest, allowing for steady income.
-Low return.
-In Lithuania, bond interest is taxed at 15% GPM.

Thus, this is a less risky option than stocks, but it is important to consider that the return obtained is also not high.

Investments in Commodities

Investing in commodities can be beneficial for several reasons:

The value of commodities does not decrease due to inflation.
In the long term, commodity prices rise.
Investments in commodities are an excellent tool to diversify an investment portfolio.

It is important to note that commodities are also a suitable instrument for risk management. They are considered relatively resilient to unforeseen events, financial crises, etc. The price of commodities usually depends on supply and demand. Although this is considered a relatively profitable and low-risk investment, commodities can be unprofitable. To reduce risk, it is recommended to spread investments across different sectors.

One of the most popular commodities for investment is gold. There are many different ways you can invest in it. Some examples:

You can buy gold bars.
You can invest in exchange-traded funds that own gold or gold mines.
You can buy gold coins, jewelry, etc.

Gold is an excellent long-term investment if you want to protect your money from inflation.

Investments in Cryptocurrencies

Cryptocurrencies are one of the riskiest, but also potentially most profitable investment methods. Their main advantages:

High return potential.
Simple and fast buying process.
High liquidity.
No dependence on banks.

On the other hand, the value of cryptocurrencies constantly fluctuates, so they can bring both large profits and huge losses. Due to security challenges, some investors also experience cases of fraud, hacking, and loss of passwords.

Investments in Artworks

Investing in artworks is an alternative, yet quite popular choice. It is stated that over the past 40 years, the price of artworks has increased by an average of 1000%. This is an ideal choice for individuals seeking a long-term investment.

Main advantages and disadvantages:

+Value growth in the long term.
+Ability to diversify investments.
-Low liquidity.
-The value of art can be subjective, so a good understanding of this market is required.

Investing Different Amounts

Now that we have discussed the TOP 10 ways to invest money, the question of investing specific amounts may arise. For example, what if you only have 100 euros to spare? Do the best investment methods differ if you have 1000 euros?

Let's start with where you can invest 100 euros. Pension funds, stocks, bonds, and crowdfunding are perfectly suitable for this. If you have 100 euros to spare, it is also recommended to consider investing in yourself, for example, courses that would help you earn more in the future.

And where to invest 1000 euros? Gold, stocks, bonds, cryptocurrencies, and crowdfunding are best for this. 1000 euros is a significant initial amount for investments, so you can use it in various ways.

What if you have as much as 10,000 euros? Then your investment opportunities expand even further. You can choose from all the methods discussed, but it is important to remember that it is best to diversify the allocated funds. This will reduce the risk of losing money.

Where is the Best Place to Invest a Child's Money in Lithuania?

Many people wonder: where is the best place to invest a child's money? Here, simplicity, security, and long-term returns are paramount. The most popular investment directions:

Index funds. Characterized by low fees, broad diversification, and can bring high returns in the long term.
Child's bank deposit with interest. This can be a fixed-term or savings deposit for the child's future. It offers high security but extremely low returns.
Crowdfunding. Parents can also invest a child's money by opening a child's account on crowdfunding platforms. In this way, parents can not only invest for the child's future but also do so together with the child and teach them about investing at the same time. On the PROFITUS platform, even minors can invest.
Investment in a child's personal development. This can include various courses, camps, clubs, etc. Long-term returns will be gained through the child's abilities.

Where and How to Invest on the Profitus Platform?

On the "Profitus" platform, you can invest in real estate development and rental projects. Everything is done on a crowdfunding basis. This means that you, together with dozens or even hundreds of other investors, finance a project, receiving a mortgage on the real estate in return. The raised amount is paid to the project owner, business, or real estate developer.

How to invest on the "Profitus" platform? You can do this by following these instructions:

Create your investor account and complete identity verification through the Ondato system.
Top up your account and prepare for investing.
Review all projects and choose the one most suitable for you.
You will allocate funds with just one click.

Once a quarter, the project owner will pay you interest, and at the end of the investment period, you will receive all your money back, which you can then reinvest.