Making money from High-Yield Investment Programs (HYIPs) is not
complicated at all. In fact, it’s a great start-up for new investors.
It’s not true that investing is only for the rich. This doesn’t mean
that you shouldn’t be cautious enough. Before registering into a HYIP,
I’d suggest you get in touch with a customer representative to see how
fast they reply back (if they reply back in the first place) and how
well they answer your question.
You can use a HYIP for either cashflow purposes or for capital gain.
After you’ve done all your homework on a particular HYIP and you
decide on investing some of your hard-earned money in it, you should
keep the following in mind:
Does the program returns back the principal?
Principle is the amount initially invested in the
program. Let’s say you deposit $100, that amount is your principle. Some
HYIPs do return the principle back after maturity; some don’t.
Does the program offers compounding options?
Compounding means re-investing your earned interest
every day. Let’s keep to the $100 example and assume that the HYIP
you’ll be investing money in offers a 4% daily interest for 10 days.
This means that one cycle for this HYIP is 10 days. It also means that
you will be earning $4 a day if the program doesn’t offer compounding.
If the program offers compounding options and you decide to set it to
50%, this means that you will be re-investing 50% of the daily profit
back to your principal. This would look something like this:
Day 0 – $100 invested – 4% daily interest – 10 days – 50% compounding rate
Day 1 – earned $4: $2 added to the $100 and $2 withdrawn as interest
Day 2 – 4% on $102 ($100 + $2) – $4.08: $2.04 added to the $100 and $2.04 withdrawn
Day 3 – 4% on $104.04 ($102 + $2.04) – $4.16: $2.08 added to principal; $2.08 withdrawn
Day 4 – $106.12 – earned $4.24: $2.12 added to principal; $2.12 withdrawn
Day 5 – $108.24 – earned $4.32: $2.16 added to principal; $2.16 withdrawn
Day 6 – $110.40 – earned $4.41: $2.20 added to principal; $2.20 withdrawn
Day 7 – $112.60 – earned $4.50: $2.25 added to principal; $2.25 withdrawn
Day 8 – $114.85 – earned $4.59: $2.29 added to principal; $2.29 withdrawn
Day 9 – $117.14 – earned $4.68: $2.34 added to principal; $2.34 withdrawn
Day 10 – $119.48 – earned $4.77: $2.38 added to principal; $2.38 withdrawn
If the principle is returned at the end of the cycle,
you will receive the $119.48 at the end as well. If the principle is not
returned at the end of the cycle, you will receive $19.48 for the
growth AND all the interests as shown above.
Short-term, long-term or both?
The best thing to do is to have a variety of programs
working at one go. If you’re a new HYIP investor, you can start with 1
or 2 fast and short-term programs. (With fast I’m not saying that you
should invest in programs promising 1001% after 3 days). You can start
with as much as $10 in most programs. Of course, the more you initially
invest, the faster and larger the growth.
When starting with 1 or 2 fast and short-term program,
you can then use the money earned from those programs to invest them
into long-term and more stable programs.
Should I secure my initial investment?
You can secure your initial investment as soon as you
can in most programs. This can be a few days in a few programs; longer
in some others. Even when you have the chance to secure your initial
investment in a few days, you also have the other option to let your
money grow for you and leave the money there. It’s your call. However,
it would be a smarter decision if you secure your money invested as soon
as possible, without compromising much your investment growth. You can
then keep using your daily interest to keep on building your investment.
If you do secure your money after a short period of time, that will
assure you that all that comes from that HYIP from then onwards is pure
profit. Not bad, eh?
Cashflow or Capital Gain?
You can either use an investment for cashflow purposes
(to pay your expenses; needs or luxuries) or else for capital gains. If
you want to be in investment programs only for cashflow purposes, then
most probably you’d be better off investing in HYIPs that offer
compounding options so you can withdraw your interests daily.
If you have other means for your income and you can
afford a few months without touching your investments, you can wait
until your investment matures and then withdraw your investment in the
end. The principal growth will be much bigger this way than if you were
withdrawing interest on a daily basis.
There is another option for you: you can have some
investments for cashflow reasons and some for capital gain reasons. This
is usually the option that is mainly recommended. You get the best of
both worlds.
What do I do with the money earned?
You might be thinking that this is rather a stupid
question but it’s not. There are many people out there who make
thousands of dollars a month and are still not wealthy or rich; they
still struggle; they are still in a lot of debt.
This is because the money they earn is immediately spent
in things that we don’t really need. This means that whatever your
income is, you will still remain in debt; you will still struggle
financially, even if you are earning $10,000 a month more… Most people
increase their expenses once they start earning more, so more money
doesn’t always mean people will become rich. You need to change your
attitude with spending. Don’t live below your means but don’t spend
randomly either.
The best thing to do with the money is to invest them in other assets
that will earn you passive income, such as real estate for rental
purposes and stocks. Also, secure your wealth by buying gold and silver.