Bitcoin Forum

Economy => Economics => Topic started by: uneng on June 24, 2025, 06:31:23 PM



Title: Reality of investments on practice
Post by: uneng on June 24, 2025, 06:31:23 PM
Have you ever had the perception passive investments in general (stocks, real estate funds...) generate a very low profit margin?

It stays around 0,6% monthly profit, what means you need 100,000$ invested in order to generate 600$ bucks a month.

For the average investor who is saving pennies or few hundreds of dollars every month on the best scenario, it will take a long time until he reaches somewhere in this financial world.

Therefore, for those who are starting their financial journey just now, maybe it's more advisable to allocate their funds on non-passive investments, what means they won't have a source of automatic profit, but at least they can pursue superior returns to maximize the potential of their money to generate further monthly income.

Once they manage doing this first step, then passive income investments start looking more attractive.


Title: Re: Reality of investments on practice
Post by: Alpha Marine on June 24, 2025, 06:55:39 PM
I think this is in line with saying people should focus on getting more sources of income or a better source of income instead of focusing on how to invest. You can't invest what you don't have, and you'll only have to invest when you have a reasonable source of income.

This is one reason I always say Bitcoin kind of gives normal people something to work with. A lot of us, including myself, would not have a passive investment right now if it were not for Bitcoin. With Bitcoin, I can keep accumulating, and in 4 to 5 years, that would have been worth something. If you are able to hold for 8 to 10 years, it will be worth even more. I don't think I would have any financial investment right now without bitcoin.


Title: Re: Reality of investments on practice
Post by: Hewlet on June 24, 2025, 07:19:21 PM
Therefore, for those who are starting their financial journey just now, maybe it's more advisable to allocate their funds on non-passive investments, what means they won't have a source of automatic profit, but at least they can pursue superior returns to maximize the potential of their money to generate further monthly income.
the reality is that most  investors don't always have the means of investing with an amount that is relative high enough for most of he popular investment option we know of. that is the reason why a lot of them easily get frustrated because when you do the analysis of what you have and look at what returns you might be getting in the short run from the available investment option, it is just enough to give up even before starting because for the most part, smaller profit does not always yield a reasonable return for most investment option.

diversification is not always a bad idea if done the right way but if not properly followed, it is better to rely on investing in an asset you are familiar with rather than trying out so many things you have little or no knowledge of.


Title: Re: Reality of investments on practice
Post by: Fortify on June 24, 2025, 09:15:41 PM
I'm not sure you have much knowledge about "passive investments" in general if you are talking about monthly returns because nobody who has done even a basic amount of investing in stocks would talk about it that way - it's always the annual return. You ignore the fact of compounding over the lifetime of the investment as well, because most people will keep adding over 20 or 30 years, so dividends and company profits create a massive return by the end of it. If you're extracting a few hundred a month instead of building a fortune, you're most likely at the wind down phase of your life or have drastically misunderstood the amount you would need for a comfortable retirement. What do you even mean by "non-passive investment" because you breeze past that without even defining it. I'd worry for people taking financial advice from such logic that is full of holes.


Title: Re: Reality of investments on practice
Post by: Ultegra134 on June 24, 2025, 09:18:20 PM
Have you ever had the perception passive investments in general (stocks, real estate funds...) generate a very low profit margin?

It stays around 0,6% monthly profit, what means you need 100,000$ invested in order to generate 600$ bucks a month.

For the average investor who is saving pennies or few hundreds of dollars every month on the best scenario, it will take a long time until he reaches somewhere in this financial world.

Therefore, for those who are starting their financial journey just now, maybe it's more advisable to allocate their funds on non-passive investments, what means they won't have a source of automatic profit, but at least they can pursue superior returns to maximize the potential of their money to generate further monthly income.

Once they manage doing this first step, then passive income investments start looking more attractive.
I'm sorry but 0.6% monthly profit is approximately 7.5% APY (Yearly). That's not too bad, quite the opposite. Moreover, $600 isn't a petty amount of money, it's a quite substantial monthly income if you ask me. It certainly depends on where you live, but that's more than half of an average salary in Greece, thus, having such a passive income on a monthly basis doesn't sound as bad as you make it to be.

It'll take approximately 3.20 years to break even, it may sound a lot, but in reality, it's not. You could take a loan, pay anywhere from $300 to $500 per month and receive $600 per month in return.


Title: Re: Reality of investments on practice
Post by: red4slash on June 24, 2025, 09:46:58 PM
When talking about stocks or other things of course we are not only about discussing about monthly profits but in other conditions we know that apart from the profits of rising stocks of course for our owners we will obviously get dividends that we can use as another form of profit.

In addition, the context of investment is clearly for the long term as well but when you say this there may be an urge to be in bitcoin, right? being in bitcoin even sometimes will not be too certain because of short-term risks (especially if we only use monthly as a benchmark) then obviously we can get losses so in this case we have to know what we are doing including understanding the concept of investment we want and the risks we will face.
It all comes back to good planning and we know that even though bitcoin is worth it, in the end it is only good for the long term and not everyone can be in bitcoin because of this and the risks they do not expect.



Title: Re: Reality of investments on practice
Post by: Richbased on June 24, 2025, 10:46:08 PM
In the end, human wants are unlimited because even if someone who is starting their financial journey gets into non-passive investment just to maximize their profits and earnings, it will never be enough as they will keep on looking for more income generating source that can enable them balance their financial needs. The problem with people now is that everyone just want to get quick rich and don't even care what it will take them. There is nothing bad in starting small and maintaining consistency till you have achieve enough funds to establish more sources of income that will aid your financial journey.

Let me take from the example you gave, $100,000 is a lot of money but even if it can only bring $600 returns at the end of the month, i see no problem with that if you don't have workers who will be part of your profits. If it's an investment or business you can manage alone it's fine. $600 is also an amount that can serve a family (in my country) in a month and they will still be left with money for other things. If the business keeps being in good shape then in a year it can generate capital for another investment, from there you start growing gradually than looking for non-passive investment that will drain your strength, stress you a lot such that you might even end up using more than half of your income on healthcare. The real deal is to have a steady flow of income and with time you will still reach that level you want.


Title: Re: Reality of investments on practice
Post by: coupable on June 24, 2025, 11:17:31 PM
Regardless of the type of investment, if you're starting with a small budget, don't expect significant returns over the long term. The problem, I believe, is that some investors, or a large segment of them, want a safe (lower-risk) investment with good returns, which is only possible in a few rare exceptions, when the investor is very lucky.

When it comes to investing, the principle of risk must be taken into account. You want lower risk, so you should diversify your investment portfolio, which means investing the largest possible amount and generating returns from different investments that can generate relatively good profits. Alternatively, if you have a small budget, there's no point in traditional, safe investments, and your best option is Bitcoin. Despite its high risk, Bitcoin is considered the safest investment in the digital asset market.


Title: Re: Reality of investments on practice
Post by: slapper on June 25, 2025, 02:45:59 AM
Nobody talks about the slow suffocation of optimism as well as looking at those numbers: 0.6% per month, barely enough to get a cheap phone plan. "Passive income" sounds like a dream until you realize that it is a slow-motion crawl, and yes, you need a mountain of cash just to buy a cup of coffee every day. Most individuals who hustle on small investments are being sold an idea that is mathematically stacked against them before they even start. It is not cynicism, it is compounding versus inflation versus the cost of living in the modern world

The passive investing is sold as "set and forget", safety, freedom. However, to novices, it only brings the illusion of improvement, a scoreboard that only counts up when you are already ahead. Then, is going full active the right thing to do? Sometimes, absolutely. When you are just starting out, perhaps by grinding it out doing freelance, or a microbusiness, or flipping collectibles, whatever. At least the profits are visible, the game is not rigged against the already-wealthy

Still, people forget that risk is a reality, and "active" sometimes implies that you can lose quicker. The financial world is constructed out of problems: "how do I get rich with 300 dollars and an app?" as though the world owes you a 10x. The majority of people are still playing survival, not growth. Therefore, yes, sometimes you have to get off the passive escalator, experiment, fail, and build your way up, and perhaps circle back when you have a higher baseline. Not instructions, only the game board. No one will tell you that it is all mostly luck and endless trial-and-error, but hey, forums are the final place where you can say that aloud


Title: Re: Reality of investments on practice
Post by: Despairo on June 25, 2025, 04:10:15 AM
Yeah I do know, that's why it's cringe when I see motivators or someone talk about Average Joe cam reach financial freedom by only investing from their hard earned money. This also include with Bitcoin, it might be higher than 0.6%, but it's still not that much.

Active income is always better than passive income, having higher active income has higher chance to get rich, but in order to get rich, it's require a combination of both active income and passive income.

We're talking about Average Joe who starting their career, not someone who born from rich parents.



Title: Re: Reality of investments on practice
Post by: Samlucky O on June 25, 2025, 04:19:45 AM
The truth is that not everyone that can comfortably invest or involve in passive income generation knowing how slow and risky it may be at times. Most people are not business oriented and have lost their fund couple of times into passive income business, and now will prefer an automated investment that will yeald a constant profile per month in respective of the low percentage in return in a month.

I will have said that it is good for people to practice a passive income business than automated, but I see that there is an individual differences in terms of business. some will prefer passive income while some will prefer a stable income just as most will prefer to work and get paid and some will prefer self employment.

The choice of anyone to become successful or not, lies in their hands. That's why we have the rich and the poor, do to the choices they made.


Title: Re: Reality of investments on practice
Post by: davis196 on June 25, 2025, 10:09:24 AM
Quote
Have you ever had the perception passive investments in general (stocks, real estate funds...) generate a very low profit margin?

It stays around 0,6% monthly profit, what means you need 100,000$ invested in order to generate 600$ bucks a month.

For the average investor who is saving pennies or few hundreds of dollars every month on the best scenario, it will take a long time until he reaches somewhere in this financial world.

Putting stocks in the low profit margin investment category is a bit of a stretch. Some stocks can generate high dividends and insane capital gains for their owners, while other stocks don't generate dividends(the companies don't generate enough profits to pay out dividends) and their price is going down. Not all stocks are created equal, so please don't put all stocks in one category.
Six hundred bucks a month is 7,200 USD per year, which is 7,2% yearly profit, which is actually high. Most low interest/low dividend investments generate less than 5% per year.
I guess that crypto trading and investing helped in creating unrealistic expectations about investing in general.


Title: Re: Reality of investments on practice
Post by: tabas on June 25, 2025, 10:17:11 AM
Have you ever had the perception passive investments in general (stocks, real estate funds...) generate a very low profit margin?

It stays around 0,6% monthly profit, what means you need 100,000$ invested in order to generate 600$ bucks a month.

For the average investor who is saving pennies or few hundreds of dollars every month on the best scenario, it will take a long time until he reaches somewhere in this financial world.
For someone who's got a larger capital, this is way better than making that money sleep on the bank. It's a low risk and low reward ratio but more assured because that's how it works with the real estate rental. But don't just look at the rent and profit, look also at the appreciation of the property.

Therefore, for those who are starting their financial journey just now, maybe it's more advisable to allocate their funds on non-passive investments, what means they won't have a source of automatic profit, but at least they can pursue superior returns to maximize the potential of their money to generate further monthly income.

Once they manage doing this first step, then passive income investments start looking more attractive.
I agree, for the younger ones and who can do more. Choose more aggressive returns but not to the point of looking at ponzi schemes and such. Always assess the risk if they're normal and fine. But in today's world, if you're up to the safe side of having the cash, there are safer ways of making money with that amount. Personally, I'll choose to put that into Bitcoin and stable coins, yield with some of it through appreciation and price increase for Bitcoin while I'll look for some opportunity with stable coins that I can take the risk it asks.


Title: Re: Reality of investments on practice
Post by: Dunamisx on June 25, 2025, 11:39:56 AM
Have you ever had the perception passive investments in general (stocks, real estate funds...) generate a very low profit margin?

It stays around 0,6% monthly profit, what means you need 100,000$ invested in order to generate 600$ bucks a month.

This is something already known and there is limit to how we can earn from all these investment plans with stocks and other markets commodities under a centralized system, but now that we are more involved and attached to the era of a decentralized digital economy, bitcoin has provided with more bigger prospect on this than we had over the years in all the aforementioned assets of investments, unlike when its crypto and bitcoin in consideration, where we have no boarder to the extent on how we can go in bitcoin investment to make profits.


Title: Re: Reality of investments on practice
Post by: fredericktaylor on June 25, 2025, 12:38:15 PM
Yeah I do know, that's why it's cringe when I see motivators or someone talk about Average Joe cam reach financial freedom by only investing from their hard earned money. This also include with Bitcoin, it might be higher than 0.6%, but it's still not that much.

Active income is always better than passive income, having higher active income has higher chance to get rich, but in order to get rich, it's require a combination of both active income and passive income.

We're talking about Average Joe who starting their career, not someone who born from rich parents.


You are right, active income is definitely more reasonable than passive income because to make passive income you need to have a lot of money which most people do not have. from my point of view, after deducting expenses from our income, if we invest some amount of money in Bitcoin every month and are patient for 5/6 years, then at the end of the year we will see a lot of Bitcoin deposited in the wallet.

Passive income requires money which not everyone has but if we can save Bitcoin through this process then we can get involved in passive income at some point but this process takes time to reach the destination but it can be safe. this can be an easy way to generate passive income. even if we don't have passive income, we can still be rich or prosperous through active income.


Title: Re: Reality of investments on practice
Post by: MArsland on June 25, 2025, 12:59:09 PM
Therefore, for those who are starting their financial journey just now, maybe it's more advisable to allocate their funds on non-passive investments, what means they won't have a source of automatic profit, but at least they can pursue superior returns to maximize the potential of their money to generate further monthly income.

Once they manage doing this first step, then passive income investments start looking more attractive.
Yes it is a risk taking for the current investment era, because our generation will find it difficult to align with old investors in the stable asset sector, the existence of bitcoin and other cryptos is an alternative as long as they are able to manage the right investment budget. Only then can we slowly start to align ourselves with those who have been investing in passive income for years.


Title: Re: Reality of investments on practice
Post by: Roseline492 on June 25, 2025, 01:02:49 PM
You are right, active income is definitely more reasonable than passive income because to make passive income you need to have a lot of money which most people do not have. from my point of view, after deducting expenses from our income,

No other type of income can have the same importance of stable income because just the way it comes that's how it plays a financial stability role on the person because with it there will be no lack of source of income, however I think you have not stated well on the context of the things that gives passive income because from what I'm seeing you are saying that before someone could be privileged for anything like passive income they would have to spend a lot of money, actually that's not the way of passive income because you can get it even when you did not spend anything from your pocket because is like a thing gotten with ease.


Title: Re: Reality of investments on practice
Post by: peter0425 on June 25, 2025, 01:05:23 PM
For the average investor who is saving pennies or few hundreds of dollars every month on the best scenario, it will take a long time until he reaches somewhere in this financial world.
That is why passive investments are called passive. They are meant to work in the background or on the side while you do something else. Usually, people will invest passively while also working or having a business which is what will generate money for everyday expenses.
Quote
Therefore, for those who are starting their financial journey just now, maybe it's more advisable to allocate their funds on non-passive investments, what means they won't have a source of automatic profit, but at least they can pursue superior returns to maximize the potential of their money to generate further monthly income.
If possible to do both, why not? If you are just starting out you can allocate only some amount to investments while you do something else with your time.


Title: Re: Reality of investments on practice
Post by: pooya87 on June 25, 2025, 02:07:44 PM
You should also consider the risks involved in any type of investment. On paper it is easy to say using other methods would generate you more profit, but in reality they also come with a higher risk that can put in a loss instead of profit. Even more so if you are not experienced in how to work in those markets.

Take bitcoin market for example. On paper the profit is fantastic. It was only a couple of years ago when price was $3000 and it is now $100,000 so the profit is massive but does everyone make that kind of profit or are many traders lose money in this market?

This is why low profit percent investments including passive ones, are popular. They come with a low risk meaning the chances of your money going poof is low! :)


Title: Re: Reality of investments on practice
Post by: GPVibes on June 25, 2025, 02:48:54 PM

Take bitcoin market for example. On paper the profit is fantastic. It was only a couple of years ago when price was $3000 and it is now $100,000 so the profit is massive but does everyone make that kind of profit or are many traders lose money in this market?

This is why low profit percent investments including passive ones, are popular. They come with a low risk meaning the chances of your money going poof is low! :)

I agree with you on the paper profit or audio profit just by calculating the difference of price from when 10,000 btc was sold for two pizzas to this time that price is trading above $107k, that profit is massive but how many have held on for that long to be that rich with bitcoin. I feel you favour short time investment where you can easily turn over profit over and over instead of waiting for when to acquire all profit at a go while leaving out accumulated short potential gains. Just like Bitcoin for example, it dropped last weekend to $99k and now back to $107k. That is cool $8k profit within 4 days, can you imagine that gain.


Title: Re: Reality of investments on practice
Post by: Smartprofit on June 25, 2025, 04:13:16 PM
In my opinion, the purpose of investing is not to create capital. The purpose of investing is to preserve existing capital. It is good for an investor if his investments allow him to preserve his savings from inflation.

To create initial capital, other methods are needed - for example, entrepreneurship, business or highly paid hired work. These types of human activity allow you to receive very large incomes and bear small expenses.

With the help of these types of human activity, you can create initial capital and subsequently become a rentier, that is, live on interest, dividends, rent, royalties, and so on.

The most important thing to remember when creating initial capital is that your income must exceed your expenses. You must have a profit.


Title: Re: Reality of investments on practice
Post by: doomloop on June 25, 2025, 05:31:52 PM
Nobody talks about the slow suffocation of optimism as well as looking at those numbers: 0.6% per month, barely enough to get a cheap phone plan. "Passive income" sounds like a dream until you realize that it is a slow-motion crawl, and yes, you need a mountain of cash just to buy a cup of coffee every day. Most individuals who hustle on small investments are being sold an idea that is mathematically stacked against them before they even start. It is not cynicism, it is compounding versus inflation versus the cost of living in the modern world
I only hear advices before that we we must stay realistic, which I think still says that too much optimism is not good. As the OP's example, that 0.6% can still be meaningful as long as we are also investing huge amounts.

The passive investing is sold as "set and forget", safety, freedom. However, to novices, it only brings the illusion of improvement, a scoreboard that only counts up when you are already ahead. Then, is going full active the right thing to do? Sometimes, absolutely. When you are just starting out, perhaps by grinding it out doing freelance, or a microbusiness, or flipping collectibles, whatever. At least the profits are visible, the game is not rigged against the already-wealthy
At least it kick starts the novice. Once they realized it eventually, that is how they can change their approach to make things better. It is still possible to earn great being passive as a regular individual. In cryptos, we have meme coins. The only active thing in which we can lose money is if we are doing a business, as it requires a capital. And the level of risk that we take can also dictate if how much return we are going to achieved.


Title: Re: Reality of investments on practice
Post by: ₿itcoin on June 25, 2025, 05:33:37 PM
I knew someone slooshing pennies to index fund. After two years gone they felt just stuck. So they reach into side gigs, crypto staking, freelance, a little swing trading continuously. Risky right? Sure. But they were able to grow their capital a little faster.

Then, once they hit a cake suddenly, say $20k, they bung most into low effort steady asset. Passive income now started looking so sexy. Before that, they just needed juice okey?

So yeah dude, passive is kinda tension free, low stress but you know it is super slow. so bitty beginners, a bit of active play, mentored, small scale, can speed things up. Just be smart don't go all in on single pot, diversify, learn as you grow. Once you've got some dough, that passive way really hums.


Title: Re: Reality of investments on practice
Post by: Mrbluntzy on June 25, 2025, 06:28:45 PM
Therefore, for those who are starting their financial journey just now, maybe it's more advisable to allocate their funds on non-passive investments, what means they won't have a source of automatic profit, but at least they can pursue superior returns to maximize the potential of their money to generate further monthly income.

Once they manage doing this first step, then passive income investments start looking more attractive.
Someone like us that are not fully started but still in school and trying to look for a means to grow the small capital we get, what's the passive income source you would advice? Tho I normally invest small amount on Bitcoin but Bitcoin doesn't give you reward monthly, you must hold until the bull season. Like you explained, I need a massive capital to invest on stocks and real estate before the profit margin would be a bit meaningful, so what invest should someone consider to join with $100?
 I was checking out one local option today and their profit daily profit for $150 investment was $0.04 per day,  which means in a year the ROI will be $14.6 very poor.


Title: Re: Reality of investments on practice
Post by: l3pox on June 25, 2025, 06:29:10 PM

Take bitcoin market for example. On paper the profit is fantastic. It was only a couple of years ago when price was $3000 and it is now $100,000 so the profit is massive but does everyone make that kind of profit or are many traders lose money in this market?

This is why low profit percent investments including passive ones, are popular. They come with a low risk meaning the chances of your money going poof is low! :)

I agree with you on the paper profit or audio profit just by calculating the difference of price from when 10,000 btc was sold for two pizzas to this time that price is trading above $107k, that profit is massive but how many have held on for that long to be that rich with bitcoin. I feel you favour short time investment where you can easily turn over profit over and over instead of waiting for when to acquire all profit at a go while leaving out accumulated short potential gains. Just like Bitcoin for example, it dropped last weekend to $99k and now back to $107k. That is cool $8k profit within 4 days, can you imagine that gain.

exactly
if trading and investing was all fun and games and easy money as it looks like it wouldn't be hard to become rich
this is probably one of the most insane niches and dealing with huge price swings is not for the weak of heart
it can be really stressful to keep up with everything that is happening in crypto and to stand the volatility without selling


Title: Re: Reality of investments on practice
Post by: STT on June 25, 2025, 11:12:32 PM
Half the gain shown is often just inflation and the gain is reduced by the fees and internal charges to trading those assets.   You are correct its very hard to win in any big way but the amount of personal effort required is low compared to most things.
   If you want the simple course which does require effort and risk its probably most common to become a landlord of some kind.  That will return the yield higher then passive but also most would say its alot more risky and focused on just where you are located.


Title: Re: Reality of investments on practice
Post by: Darker45 on June 26, 2025, 12:31:36 AM
Yeah, you don't invest in these assets if you're in a hurry making profit. Passive investments are often perceived as the option for money that's otherwise not producing anything at all. Rather than have them devalued over time, they better be put into stocks or real estate. At least, if they're not generating enough profit, they're protected from inflation.

So, if you have a limited amount of investment money, you can't choose passive investments. Well, if you're risk-averse, you may opt for smaller returns in exchange for a certain level of security. But if the goal is to generate as much income as possible, you have to take the risk and get into active investments. Start a business, for example. 


Title: Re: Reality of investments on practice
Post by: Text on June 26, 2025, 12:54:51 AM
In my early investing days I also felt discouraged by the slow growth of passive investments. It felt like the rewards were so far off in the distance that I questioned if the strategy was even worth it. What helped me was shifting focus I began learning about active income-generating opportunities like side hustles, freelancing, even crypto and startup investing.

I see passive investments now as more of a long-term foundation rather than a quick solution. Once I had a bit of momentum they became a great way to preserve and slowly grow what I’d already worked for.
So as someone starting from scratch the more agile or active path may be the more realistic stepping stone. Then passive income becomes the reward for surviving and thriving through that first uphill climb.


Title: Re: Reality of investments on practice
Post by: AmoreJaz on June 26, 2025, 06:48:47 PM
Half the gain shown is often just inflation and the gain is reduced by the fees and internal charges to trading those assets.   You are correct its very hard to win in any big way but the amount of personal effort required is low compared to most things.
   If you want the simple course which does require effort and risk its probably most common to become a landlord of some kind.  That will return the yield higher then passive but also most would say its alot more risky and focused on just where you are located.

If you want passive income, this will indeed entail a careful study as there is inflation that we really experience when it comes to assets. The worth is going down depending on the asset. But if you are into real-estate, usually, the price is going up throughout the years. So better educate yourself on the type of asset that you want to venture with because it will dictate what you will get from it in the coming years.


Title: Re: Reality of investments on practice
Post by: Lida93 on June 26, 2025, 07:59:11 PM
This is very much simple to express than practice it that it may bring forth the kind of profit projected at the end of the entire time of investment.

What about the risks? What about the possibility of the assets invested in getting collapsed along the line?  Your source of income and how stable, sizeable and consistent it is should also be looked into as a determinant to comfortably allocate such an amount of funds needed to invest which could rake back something admirable over a period of time.


Title: Re: Reality of investments on practice
Post by: yudi09 on June 26, 2025, 08:50:43 PM
Have you ever had the perception passive investments in general (stocks, real estate funds...) generate a very low profit margin?

It stays around 0,6% monthly profit, what means you need 100,000$ invested in order to generate 600$ bucks a month.
If on average I'm going to get $600 per month out of the $100,000 I have to invest, then that's not low, but it's high for me and I would certainly be willing to do it especially since this type of investment is clear and doesn't lead to fraud.

This means that with an investment capital that is less than the amount you mentioned, I can still get a very decent return for me if I add it up every month until it reaches 1 year. Usually 4 years of investment, I can estimate how much I will get.


Title: Re: Reality of investments on practice
Post by: AbuBhakar on June 27, 2025, 08:09:34 AM
Have you ever had the perception passive investments in general (stocks, real estate funds...) generate a very low profit margin?

It stays around 0,6% monthly profit, what means you need 100,000$ invested in order to generate 600$ bucks a month.
If on average I'm going to get $600 per month out of the $100,000 I have to invest, then that's not low, but it's high for me and I would certainly be willing to do it especially since this type of investment is clear and doesn't lead to fraud.

This means that with an investment capital that is less than the amount you mentioned, I can still get a very decent return for me if I add it up every month until it reaches 1 year. Usually 4 years of investment, I can estimate how much I will get.

0.6% monthly is actually high and annually that would be 7.2%. Traditional banks usually offer less than 0.5%. A monthly passive profit like that is already good.

A 600$ monthly income indeed is low but if you don't touch it and let it accumulate over time or buy an asset that increases value like gold or bitcoin then your profit will become bigger. It's a win-win situation and you secured your future since you both have a savings and an investment.


Title: Re: Reality of investments on practice
Post by: fruktik on June 27, 2025, 08:32:56 AM
Have you ever had the perception passive investments in general (stocks, real estate funds...) generate a very low profit margin?

It stays around 0,6% monthly profit, what means you need 100,000$ invested in order to generate 600$ bucks a month.

For the average investor who is saving pennies or few hundreds of dollars every month on the best scenario, it will take a long time until he reaches somewhere in this financial world.

Therefore, for those who are starting their financial journey just now, maybe it's more advisable to allocate their funds on non-passive investments, what means they won't have a source of automatic profit, but at least they can pursue superior returns to maximize the potential of their money to generate further monthly income.

Once they manage doing this first step, then passive income investments start looking more attractive.
Where did you get this information that an investor gets 0.6% monthly? This is some kind of nonsense. Today, no one gets less than 15-20% per annum. In my country, even a bank deposit gives about 21% per year of the deposit. Now imagine that other assets give it. Therefore, you wrote complete nonsense that does not fit with reality. You should study this issue in more detail.


Title: Re: Reality of investments on practice
Post by: CageMabok on June 27, 2025, 09:16:29 AM
... :)
I agree with you on the paper profit or audio profit just by calculating the difference of price from when 10,000 btc was sold for two pizzas to this time that price is trading above $107k, that profit is massive but how many have held on for that long to be that rich with bitcoin. I feel you favour short time investment where you can easily turn over profit over and over instead of waiting for when to acquire all profit at a go while leaving out accumulated short potential gains. Just like Bitcoin for example, it dropped last weekend to $99k and now back to $107k. That is cool $8k profit within 4 days, can you imagine that gain.
Every profit can always be imagined by anyone because what is sometimes unimaginable is the loss even though the amount itself also varies greatly. And in terms of seeking profit through Bitcoin, it actually depends on our respective styles and desires when using one of the methods, for example, most people are able to survive not selling Bitcoin after they bought it in early 2023 until they sell it again in the middle of this year. It means that such patience in waiting for a fairly high profit is also not a wrong step even though for those who are able to take short-term profits in other words, accumulation also looks good. But it also requires quite high consistency because if the accumulation does not run smoothly with a long period of time, the profit itself will not be too much.


Title: Re: Reality of investments on practice
Post by: batang_bitcoin on June 27, 2025, 09:51:29 AM
This is the reason why the rich can tell us easily to make our money work for us. It's because they've got large funds that are either earning in interest and are deposited to some banking service that earns them money passively. Or, its value is in the real estate. It's normal for the new investors to look at it as if that's a far goal to be reached. But that's the end goal for most of us, to earn passively with the money that we have saved and invested for. That's how the rich make their money work for them and earn them passively because they've decoded and studied it as well.


Title: Re: Reality of investments on practice
Post by: Kagaru on June 27, 2025, 10:38:36 AM
Have you ever had the perception passive investments in general (stocks, real estate funds...) generate a very low profit margin?

It stays around 0,6% monthly profit, what means you need 100,000$ invested in order to generate 600$ bucks a month.

For the average investor who is saving pennies or few hundreds of dollars every month on the best scenario, it will take a long time until he reaches somewhere in this financial world.

Therefore, for those who are starting their financial journey just now, maybe it's more advisable to allocate their funds on non-passive investments, what means they won't have a source of automatic profit, but at least they can pursue superior returns to maximize the potential of their money to generate further monthly income.

Once they manage doing this first step, then passive income investments start looking more attractive.
I think that many people share this view when they finally begin to crunch the numbers. Passive income is fantastic in principle but when you want to start with a small amount of money you will have to wait some time before you can notice a difference with the 0.5 to 0.6 percent increase per month. It is tedious and even disheartening. To individuals who are starting out financially, it is reasonable to consider more active strategies that can deliver potentially greater returns despite being (perhaps) riskier or more work. That may include stuff like a side hustle, flipping items, learning to trade, or a small online business. These may not be passive initially but they have the ability of accumulating capital far quicker.


After establishing the said base, investing passively becomes more relevant. That is when you will be in a position to really enjoy the compounding without having to wait 20 years to see the difference. Well, being active may not only be a better idea in the beginning but, may be a requirement.




Title: Re: Reality of investments on practice
Post by: Coyster on June 27, 2025, 12:50:09 PM
If you were introduced to an investment that would generate 100% monthly, would you attempt to put your money into that, i am sure the answer is NO, because it is definitely a scam. Good investments take time and you generate more profits through compound interest as you reinvest some of your returns.

That said, there is a reason why people invest in gold for example, they know the returns do not come very fast or in large percentages, but they have the assurance of a high level of safety. Whilst investing, if you chase only profits without protecting your principal, you might lose it sooner or later.


Title: Re: Reality of investments on practice
Post by: rodskee on June 27, 2025, 01:47:18 PM
 
In my opinion, the purpose of investing is not to create capital. The purpose of investing is to preserve existing capital. It is good for an investor if his investments allow him to preserve his savings from inflation.
yes that is true but we can also reinvest the money we gained from another investment and keep the money growing

i do not think there is just one right definition of investing neither there is just one way of investing because it really depends on the investor and what his capabilities are and what his goals are entering an investment

some may just want to keep their money safe from inflation, some may be planning to use the profit made for buying something huge, some may want to keep it growing and etc


Title: Re: Reality of investments on practice
Post by: Apocollapse on June 27, 2025, 02:50:55 PM
Where did you get this information that an investor gets 0.6% monthly? This is some kind of nonsense. Today, no one gets less than 15-20% per annum. In my country, even a bank deposit gives about 21% per year of the deposit. Now imagine that other assets give it. Therefore, you wrote complete nonsense that does not fit with reality. You should study this issue in more detail.
Pretty sure the economy in your country are fucked up because banks want to gives 21% APY.

Usually banks only offer around 3%-4%, even worst they only offer 1% if the inflation rate is low. Although I didn't find the information, I think 0.6% monthly is make sense, investment in most of countries usually offer such amount.

Even though your banks can gives high interest, better to invest in global assets.


Title: Re: Reality of investments on practice
Post by: passwordnow on June 27, 2025, 02:57:12 PM
Where did you get this information that an investor gets 0.6% monthly? This is some kind of nonsense.
That's his example that for someone to earn $600, that investor should have at least $100k for that percentage of average.

Today, no one gets less than 15-20% per annum. In my country, even a bank deposit gives about 21% per year of the deposit. Now imagine that other assets give it. Therefore, you wrote complete nonsense that does not fit with reality. You should study this issue in more detail.
It varies to what kind of investment and deposits that we get in. In most bank deposits, it won't even reach 21% per annum and just like from 1% to 5% so that's even more unreal when you've said 21%. 15% is possible and lower of it are the typical rates for most but they're not mostly banking deposits that gives that typical rate.


Title: Re: Reality of investments on practice
Post by: SATWAT on June 27, 2025, 04:04:26 PM
If you were introduced to an investment that would generate 100% monthly, would you attempt to put your money into that, i am sure the answer is NO, because it is definitely a scam. Good investments take time and you generate more profits through compound interest as you reinvest some of your returns.

That said, there is a reason why people invest in gold for example, they know the returns do not come very fast or in large percentages, but they have the assurance of a high level of safety. Whilst investing, if you chase only profits without protecting your principal, you might lose it sooner or later.
You're this line make my day because just few days back in our area something happen which give good lesson to many some investors came and give some good ideas with 100% return quickly a greedy landlord of our area trapped and lost nearly 100 Million RS which is huge amount for many, but now he is regretting.
Always needs to keep things on check and never jump in greediness because sometime no way of return no investment gives profit like this 100% its take time and then things works, but human nature is always having to go through with things which create their hopes and have non-realistic ideas.

Few investments always stay in limelight because now peoples have good trust with them even profit ratio is slow, but they understand how this will be ended always do which is having realistic approach not artificial.


Title: Re: Reality of investments on practice
Post by: hafiztalha on June 27, 2025, 05:26:15 PM
Where did you get this information that an investor gets 0.6% monthly? This is some kind of nonsense.
That's his example that for someone to earn $600, that investor should have at least $100k for that percentage of average.

Today, no one gets less than 15-20% per annum. In my country, even a bank deposit gives about 21% per year of the deposit. Now imagine that other assets give it. Therefore, you wrote complete nonsense that does not fit with reality. You should study this issue in more detail.
It varies to what kind of investment and deposits that we get in. In most bank deposits, it won't even reach 21% per annum and just like from 1% to 5% so that's even more unreal when you've said 21%. 15% is possible and lower of it are the typical rates for most but they're not mostly banking deposits that gives that typical rate.
All people are taking about passive investment because they saw videos on YouTube which is providing content to get views . They have no attachment with you because they want to get money by different things but actually they are earning best . Passive income is not easy as you are thinking because they need a lot of investment and for person like us that is not good and we have to learn more because we are job holders. we have money but don't have time to invest this money on best investment.Stocks investment is not an easy and all things always look easy from the away but we are close to that ,these are not easy and we will challenges to jump that.


Title: Re: Reality of investments on practice
Post by: Solosanz on June 27, 2025, 05:48:37 PM
All people are taking about passive investment because they saw videos on YouTube which is providing content to get views . They have no attachment with you because they want to get money by different things but actually they are earning best . Passive income is not easy as you are thinking because they need a lot of investment and for person like us that is not good and we have to learn more because we are job holders. we have money but don't have time to invest this money on best investment.Stocks investment is not an easy and all things always look easy from the away but we are close to that ,these are not easy and we will challenges to jump that.
Passive income and financial freedom, that's two reasons why people saves much their money.

They thought after working for specific period of time, their investment will grow and able to cover their needs in the future without working. But, the reality as we get older, our responsibility are getting bigger.

When you were young, you only need to fund yourself, after you married, you have to fund your spouse including kids, after you old, you have to fund yourself more than before due to having disease.


Title: Re: Reality of investments on practice
Post by: yudi09 on June 27, 2025, 07:54:57 PM
-snip-

0.6% monthly is actually high and annually that would be 7.2%. Traditional banks usually offer less than 0.5%. A monthly passive profit like that is already good.
There is nothing wrong with positioning that percent and that amount in the place of domicile.
If there is something better than the traditional bank interest percentage offer, why should it be there.

A 600$ monthly income indeed is low but if you don't touch it and let it accumulate over time or buy an asset that increases value like gold or bitcoin then your profit will become bigger. It's a win-win situation and you secured your future since you both have a savings and an investment.
Here I agree, especially if the investment is in assets that are proven to be good for hedging. Even if the return is considered low, as long as it is not touched it will be very good, even though there is a judgment from people that investing in high-risk assets will not really be good. There are even offers to look for low-risk savings such as government bonds.


Title: Re: Reality of investments on practice
Post by: Rockstarguy on June 27, 2025, 09:27:01 PM
Therefore, for those who are starting their financial journey just now, maybe it's more advisable to allocate their funds on non-passive investments, what means they won't have a source of automatic profit, but at least they can pursue superior returns to maximize the potential of their money to generate further monthly income.

Once they manage doing this first step, then passive income investments start looking more attractive.
It is just best that whatever investment one wants to go into, it is important there must be an understanding of it, the understanding of how profit is being gained.

 One must also be prepared before going into the investment, and if it is an investment where profits are unpredictable, it is important that before one goes into it, there should be a source of income on hand that one can depend on, not just on the investment. Many people make the mistake of going into investments that they don't even know about and are never prepared for. But when there is a good understanding of an investment and proper preparation, other challenges are something that can be solved.


Title: Re: Reality of investments on practice
Post by: Obari on June 27, 2025, 11:45:56 PM
I think this is in line with saying people should focus on getting more sources of income or a better source of income instead of focusing on how to invest. You can't invest what you don't have, and you'll only have to invest when you have a reasonable source of income.

I don’t want to think of altcoin but regardless of what the case might be, I think op is right and you’re as well right  but most times I always tell people to take it easy on themselves so they don’t end up shooting themselves and what I mean is that, we should learn how to explore the world within our means without getting distracted with the lives of others.
Taking life one at a step is a great one and by so doing, first getting a source of income is key even before getting the next one so you will be able to face the challenges of life and what truly matters in life is staying happy and finding joy in the little things that we Doan’s not trying to earn the world


Title: Re: Reality of investments on practice
Post by: passwordnow on June 28, 2025, 04:34:40 AM
Today, no one gets less than 15-20% per annum. In my country, even a bank deposit gives about 21% per year of the deposit. Now imagine that other assets give it. Therefore, you wrote complete nonsense that does not fit with reality. You should study this issue in more detail.
It varies to what kind of investment and deposits that we get in. In most bank deposits, it won't even reach 21% per annum and just like from 1% to 5% so that's even more unreal when you've said 21%. 15% is possible and lower of it are the typical rates for most but they're not mostly banking deposits that gives that typical rate.
All people are taking about passive investment because they saw videos on YouTube which is providing content to get views . They have no attachment with you because they want to get money by different things but actually they are earning best . Passive income is not easy as you are thinking because they need a lot of investment and for person like us that is not good and we have to learn more because we are job holders. we have money but don't have time to invest this money on best investment.Stocks investment is not an easy and all things always look easy from the away but we are close to that ,these are not easy and we will challenges to jump that.
That's the normal way of making contents. What they've known and learned, they're sharing it to us for free but of course in return of having views and getting paid for the ads. There is no problem with that because they share common knowledge and investing techniques and you're just going to get tired for viewing almost the same contents of the videos that you'll watch about financial matters and investments. It's true that it's not easy and requires money to invest. But don't get stuck with that thinking because it's a common requirement for someone to invest. And don't say that you don't have time to invest if you're a regular worker, buy bitcoin and let it grow naturally.


Title: Re: Reality of investments on practice
Post by: Hanadawa on June 28, 2025, 04:36:04 AM
Passive income and financial freedom, that's two reasons why people saves much their money.
They thought after working for specific period of time, their investment will grow and able to cover their needs in the future without working. But, the reality as we get older, our responsibility are getting bigger.
When you were young, you only need to fund yourself, after you married, you have to fund your spouse including kids, after you old, you have to fund yourself more than before due to having disease.
I think the scale of responsibility can be adjusted as long as you have a really mature financial plan. We must realize that every decision in life is related to finance. The decision to get married and have children is also part of a financial decision. I agree that investment can make your money continue to grow. A return of $ 600 can be big if you keep letting it go without making a withdrawal. But on the other hand, decisions like getting married and having children will affect your investment. Therefore, it is important for someone who is still pioneering investment with small money to make plans related to getting married and having children. If you have a big dream to get a big passive income from investment, sometimes you have to postpone your other goals such as getting married and having children.


Title: Re: Reality of investments on practice
Post by: yhiaali3 on June 28, 2025, 04:54:49 AM
Yes, passive investing depends primarily on your capital. The higher your capital the higher your monthly or annual returns. Therefore for those without a relatively large capital passive investingis not a profitable option.

In my country, the possibility of investing in stocks is very limited to a small group of people with very large capital, so this culture is not widespread. But, with the emergence of Bitcoin andcryptocurrencies, I believe the situation has changed and it has become much easier as we can acquire good capital through long-term accumulation and, in the end you earn good passive income thanks to price increases.


Title: Re: Reality of investments on practice
Post by: fruktik on June 28, 2025, 04:56:37 AM
Pretty sure the economy in your country are fucked up because banks want to gives 21% APY.

Usually banks only offer around 3%-4%, even worst they only offer 1% if the inflation rate is low. Although I didn't find the information, I think 0.6% monthly is make sense, investment in most of countries usually offer such amount.

Even though your banks can gives high interest, better to invest in global assets.
I understand the fact that investments in global assets are much more reliable and better, but there is no choice, since access to external markets is closed due to sanctions. Another dangerous moment is that entrepreneurs decided to stop their business for some time and simply threw money into bank deposits. The reason is simple - high profitability. Their activities did not give such interest. So it turns out that collapse is sweeping across the country. Even the top management is already sounding the alarm. It seems that everything is going well and even wonderfully, but this is just an illusion that will soon subside and all citizens will face the harsh reality.


Title: Re: Reality of investments on practice
Post by: Oluwa-btc on June 29, 2025, 08:55:57 AM

For the average investor who is saving pennies or few hundreds of dollars every month on the best scenario, it will take a long time until he reaches somewhere in this financial world.

Therefore, for those who are starting their financial journey just now, maybe it's more advisable to allocate their funds on non-passive investments, what means they won't have a source of automatic profit, but at least they can pursue superior returns to maximize the potential of their money to generate further monthly income.

Once they manage doing this first step, then passive income investments start looking more attractive.

Well you're right about passive investment not generating much more profits but one can still accumulate more through consistent plans, let's take for instance you're earning 100bucks each month when you aim at 500buck then you'll need to take up your plan so seriously to meet up your expectations so then you'll have to  adjust your income preference to meet up with that inorder to get higher returns.


Title: Re: Reality of investments on practice
Post by: Jibdeen on June 29, 2025, 09:15:02 AM
Have you ever had the perception passive investments in general (stocks, real estate funds...) generate a very low profit margin?

It stays around 0,6% monthly profit, what means you need 100,000$ invested in order to generate 600$ bucks a month.

For the average investor who is saving pennies or few hundreds of dollars every month on the best scenario, it will take a long time until he reaches somewhere in this financial world.

Therefore, for those who are starting their financial journey just now, maybe it's more advisable to allocate their funds on non-passive investments, what means they won't have a source of automatic profit, but at least they can pursue superior returns to maximize the potential of their money to generate further monthly income.

Once they manage doing this first step, then passive income investments start looking more attractive.
  Well as an average investor investing in passive investment is a kinda not the best idea for you because you are trying to acquire wealth not store them and investing in passive investment is jus like a means of storing value not a means of acquiring a lot of wealth in short time.
  Non-passive investment on the other hand is a very risky type of investment and that is why most people starting their financial journey don’t invest in them. As a starter something you have to know is that taking risks is always the best way to acquire wealth because all of the wealthy people took risks at one point of their lives and that risks changed them forever, some of them dropout of school while some resigned from their job and focus on starting new things which they were not sure about but they risked it and finally they made it.
  People with financial freedom do consider investing in passive investment because they want to store their wealth in the most promising and profitable investment.
  As a starter I’d would advice considering investing in bitcoin and other tech assets, that is just my opinion


Title: Re: Reality of investments on practice
Post by: Gost ms on June 29, 2025, 10:37:19 AM
If you were introduced to an investment that would generate 100% monthly, would you attempt to put your money into that, i am sure the answer is NO, because it is definitely a scam. Good investments take time and you generate more profits through compound interest as you reinvest some of your returns.

That said, there is a reason why people invest in gold for example, they know the returns do not come very fast or in large percentages, but they have the assurance of a high level of safety. Whilst investing, if you chase only profits without protecting your principal, you might lose it sooner or later.
You're this line make my day because just few days back in our area something happen which give good lesson to many some investors came and give some good ideas with 100% return quickly a greedy landlord of our area trapped and lost nearly 100 Million RS which is huge amount for many, but now he is regretting.
Always needs to keep things on check and never jump in greediness because sometime no way of return no investment gives profit like this 100% its take time and then things works, but human nature is always having to go through with things which create their hopes and have non-realistic ideas.

Few investments always stay in limelight because now peoples have good trust with them even profit ratio is slow, but they understand how this will be ended always do which is having realistic approach not artificial.

Yes, people are being cheated in this way, even now there are many regions where the light of education has not reached well. Many people show such a tendency by going to those regions. When they fall into their trap, they steal all their money. No one would ever want their money to be lost, whoever says that you invest here you will get 100% profit, this is a complete scam. Because whoever is telling you that you invest you will get 100% profit, then why is he not a big man by investing.

Always invest in Bitcoin for the long term. Even though Bitcoin is very volatile, in the case of long-term investment, the possibility of profiting in Bitcoin is very high. You have to hold it for the long term only. Bitcoin investment is not a get-rich-quick scheme. If the price of Bitcoin increases immediately after you invest, then you will have a lot of money to gain. But it is never right to sell your holding just because your investment is making profit. Hold on for the long term until your time limit expires.


Title: Re: Reality of investments on practice
Post by: GiftedMAN on June 29, 2025, 11:28:15 AM
I think this is in line with saying people should focus on getting more sources of income or a better source of income instead of focusing on how to invest. You can't invest what you don't have, and you'll only have to invest when you have a reasonable source of income.

I don’t want to think of altcoin but regardless of what the case might be, I think op is right and you’re as well right  but most times I always tell people to take it easy on themselves so they don’t end up shooting themselves and what I mean is that, we should learn how to explore the world within our means without getting distracted with the lives of others.
Taking life one at a step is a great one and by so doing, first getting a source of income is key even before getting the next one so you will be able to face the challenges of life and what truly matters in life is staying happy and finding joy in the little things that we Doan’s not trying to earn the world
Anything investment needs capital and has been the major obstacle that had been preventing many people from investing in what they like and what they think will become profitable for the in a long run. We don't have to be panicked because we don't have the fund to invest even though there might be other options like getting a loan for the sale of investing. We need to remove the zeal that could make us over do just to get what we want. Life is a journey and we shouldn't expect to get every single thing we long for at the moment.


Title: Re: Reality of investments on practice
Post by: justdimin on June 29, 2025, 01:29:24 PM
maybe it's more advisable to allocate their funds on non-passive investments, what means they won't have a source of automatic profit, but at least they can pursue superior returns to maximize the potential of their money to generate further monthly income.
Why it is necessarily? I mean you may go investing on a passive stream and from that you may go DCA with bitcoin and you still get chances to maximize your wealth. After bitcoin, honestly I do not look for any other investments which may provide passive income or automatic profits. I just believe into bitcoin and save it for my retirement. From bitcoin investments, like you mentioned that I am not getting any immediate returns.

If you are able to hold for 8 to 10 years, it will be worth even more. I don't think I would have any financial investment right now without bitcoin.
You just sound like exact replica of myself. But, I started thinking about investing with stocks, gold and real estate for the reason of diversification. Bitcoin is good enough but stock markets are regulated by government so having them on least percentage may help to comply with basics of investment principles.


Title: Re: Reality of investments on practice
Post by: mindrust on June 29, 2025, 01:49:24 PM
0,6% monthly yield translate to 7,2% annual yield. That’s not low. That’s a lot if you are getting it from boring and safe assets. That kind of assets usually generate no more than 4% so 7% is huge compared to those. Yes you need at least $100k to create a meaningful income with that kind of investment but you forget the compounding effect. Trust me it will take much quicker to reach half a million than you think. You just need to keep buying and before you know it, you will be looking down at a million usd.