BEST WAY TO INVEST YOUR MONEY AS SEAMAN / SEAFARER
While onboard ship, we think we can buy anything. We can do any business. The moment we get down from the ship, we forget how tough life is on board the ship.
The most difficult part of seafarer life is that they do not get wages while at home. So although salary seems to be handsome in reality, it is not.
So the bottom line is we must invest our money whenever we get opportunities.
In this article, various methods are described to grow money through various methods. This article is written with consultation with at least 10 masters and 10 chief engineers who successfully invested their money.
Before jumping into the topic let me tell you all one thing and just take it as a thumb rule that controls your expense if you want to save money and hence invest. So the basic rule is to maintain enough balance in your bank account to survive at least 9 months without salary.
The second step is to take few insurance policies like term plans, child education plans, and health insurance.
The third step is to keep some balance in fixed deposit
The fourth step comes to our article headings that is Investment
So without further delay let’s discuss few successful methods to invest money
Invest in real estate
Real estate investment gives a good return but it depends upon several factors. You need to do your homework correctly prior to investing as it’s not about the small amount of investment.
Buying an apartment is a good idea provided you must be able to get enough rent or return from your investment. Nowadays a new trend has come. I am talking about AIR BNB. And giving apartments on rent to hotels on monthly basis. This is the way where you will be able to recover your apartment cost.
Before buying just enquire about rents in that locality. If you are satisfied with the rent amount then book an apartment. But book it while construction is about to start so that you will get a better deal. Make sure that apartment society consists of swimming pool, car parking facilities, gymnasium, children’s play area, etc….Else you will not get enough income from AIR BNB.
It’s not that difficult nowadays to get a home loan for seafarers/ NRI
Buying farmland away from the city is a good idea. It keeps you busy while at home. Can grow organic vegetables. If do not have interest in vegetable farming then always can opt for plantation such as cocoanut tree, sandalwood, mango trees, teak wood, etc to name a few.
Personally, I know a few chief engineers from Andhra Pradesh and Orissa, who are very successful in this business. They brought land at a damn cheap price and after 20 years it is now worth a few hundred crores.
Buying land, constructing a house, and renting that home is also a good idea and it gives a return like pension during old age. But consideration is to be given on rent amount and construction cost. This idea works for those who just started their sea career or are at the middle stage.
Invest in Share Market
Investing in shares is a good-to-go idea provided you have basic knowledge of the stock market. Invest in the market according to your risk-taking ability.
Most of the market guru says the best time to invest in stock is now but personally, I feel it’s not true. There are various factors one must consider before investing in stocks.
Factors to consider before investing in stocks
If you are starting at a young age then you can take more risks and you must consider investing in stocks especially equity.
If you are about to retire then better stay away from any sort of stock market investment.
Never invest in stock while the market is at its peak. Wait for it to come down then invest. It’s better to keep money with you rather than losing it in the market.
A person with high risk-taking ability can go for buying equity investment. Moderate risk-takers can head to mutual funds. Safe players better stay away from the share market and go for fix deposits or government bonds or invest in gold.
Investing in equity–
Divide your money into five parts, 20% each, and invest in shares of different sectors. In each sector choose 2 to 3 best companies and invest in those shares only.
Investing in a mutual fund–
Mutual fund investment is also investment in stocks of a different company but the difference is that one fund manager will buy and sell shares on your behalf. The fund manager will charge some commission for his service. Mutual fund investment is safer comparatively because of the knowledge and expertise of the fund managers.
The best way to invest in a mutual fund is to invest in SIP. Sip means systematic investment plan. That means you should invest fix amount in regular intervals may be daily, weekly, or monthly.
The past market result shows mutual fund investment is one of the best methods of investment especially if you do it in SIP mode.
There are other methods as well but while making money id concerned above methods are good for seafarers.
This method is for those who regularly sit in front of the computer. You buy the stock at 9.15 AM and sell before 3.30 pm the same day. If you have enough skill, experience, and knowledge of the market then you can earn a handsome amount of money. But it poses a huge risk on your capital and may wash out your complete capital in a matter of few seconds.
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Invest in Bussiness-
Present coronavirus has taught one lesson that business related to the supermarket, medical equipment, Medicines will never fail in any pandemic situation. So keeping that in mind this section is described.
In both above-said businesses, location matters a lot. For Medicine stores, it must be in the vicinity of the hospital. For a supermarket, it must be in an overcrowded marketplace.
Few have doubts about how to start a medicine business when we do not have a pharmacy certificate.
The answer to this query is quite simple. Hire a guy with a valid pharmacy certificate and run your store successfully.
Lending Money in a society-
Personally, I know few people who lend money in a society or to known persons. Few people lend money to jewelers and get a 2% rate of interest per month basis.
This is a good idea to grow money if and only if you have a good connection and capacity to recover your hard-earned money.
Few more investment ideas for safe players.
Pradhan Mantri Vaya Vandana Yojana (PMVVY)–
PMVVY is for senior citizens aged 60 years and above to provide them an assured return of 7.4 percent per annum. The scheme offers pension income payable monthly, quarterly, half-yearly, or yearly as predecided. The minimum pension amount is Rs 1,000 per month and a maximum of Rs 9,250 per month. The maximum amount that can be invested in the scheme is Rs 15 lakh. The tenure of the scheme is 10 years. Although interest earned is less still a safe bet.
Investing in gold-
Investing in physical gold is not a great idea as making charges and other wastages come into play. That means when you are in a need of money, so much deduction will come in to picture.
Many banks sell gold coins and gold biscuits nowadays. An alternate way of owning gold is via paper gold. Investment in paper gold is more cost-effective and can be done through gold ETFs. Such investment (buying and selling) happens on a stock exchange (NSE or BSE) with gold as the underlying asset. Investing in Sovereign Gold Bonds is another option to own paper-gold. An investor can also invest via gold mutual funds.
The author is not a financial advisor or financial expert. Consult a financial advisor before making any investment. The above article is only for awareness purposes.
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