In the world of physics, the Greek scientist “Archimedes” discovered that it is possible, using levers and pulleys, to move and carry large and huge objects with a small amount of force. 

In the world of finance, we call levers and pulleys “financial efficiency”, which means the ability to control a large amount of wealth with a small amount of money.

Thus, if we have a person who owns a property and wants to sell it at a value of $200,000, he will include the property in a broker’s list and wait for an offer to buy.

 Let us suppose that after several months have passed, someone comes to buy the property at the aforementioned value, after deducting the broker’s commission of 5%, the owner of the property will receive an amount of 190 thousand. 

 But if you apply financial effectiveness in (choice contracts), you can earn large amounts by investing a little money.

 If you ask the real estate owner to fix the price of the property at $200,000 for a year, in exchange for paying him $10,000, And before the year goes by, you were able to find a buyer who pays more than $210,000, you can keep the difference as a profit, in addition to that the owner of the property will get the full amount of $200,000 plus $10,000 as the selection amount, in addition to that he will not have to pay a commission Thus, everyone will be profitable.

You can also apply financial leverage to the stock market as well, but unlike real estate, stocks have volatile values, as they show a wide swing in price over a short period, which may affect your wealth very much, positively or negatively, so you can control shares worth 6 Thousands of dollars at 500 dollars, and if the value of the stock increases, you can sell it and keep the difference, but if it decreases, you will lose 500 dollars, which is the amount of the choice. 

The application of the theory of financial effectiveness leads to certain profits, and then we find that it gives novice investors who do not have a lot of money the ability to control many real estate and stocks with a little money. 

6 alternatives to invest your money.. Safe, secure and profitable:

The economist, Dr. Mustafa Badra, said that there is a current need to rationalize spending and apply all possible methods so that spending is within the limits of necessities only, with the possibility of keeping part of the income. 

1- Savings certificates: Badra said that it is one of the most important means of saving and achieving a stable income without any risk. It is possible to benefit from, save and invest any amount of money through bank certificates. 

2- Gold: Badra said that investing in gold is one of the available options and is considered a store of value, but it must be in the long term to achieve a reasonable return from it.

3- Treasury bills: Badra said that they are one of the safe means of investment and are available to all, and they are also guaranteed as one of the means of saving and investment. 

 4- Buying bonds: Badra said that the purchase of these bonds will be through banks, which are also one of the guaranteed and safe mechanisms for investment.

 5- Buying real estate: Badra said that buying real estate, especially available from the state, will be one of the important alternatives for investment and generating income from it, but it may need a large amount of money to buy real estate units.

 

He pointed out that keeping money in homes is a “loss” because its value is declining as a result of inflation, and it is required to direct it to banks and invest it in any available way.

Badra stressed the need for displacement in consumption processes, explaining that this is what major countries apply and oblige their citizens to implement rationalization mechanisms in all aspects of life.

He explained that a large part of the American population, for example, has become dependent on transportation instead of private cars, calling for the need for spending to be within the framework of rationalization and within the limits of income possibilities.