How would you make money ?

[kandrathe]

How lucky.
Is it worth buying Microsoft stocks?
I have considered buying a flat.Is it better to buy cash down or take a credit for it?
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On Microsoft... I don't know. I own some, but I bought them before the bubble burst. I'm still down about 20% on that and Intel. There are some signs that the business economy is improving, but $50 barrels of oil, and the uncertainty of our current global security stance regarding terrorism has investors pretty spooked. I've moved the bulk of my portfolio into staple goods and services, and occasionally strike on a short term profit potential. I spent at least a year studying the stock market before being confident enough to play, just as I studied craps and blackjack before I went to Las Vegas on a two week business junket. I'm not the type of person that can just throw down my stake on chance at roulette, lose, and not walk away feeling very stupid.

I would also council you to pay off all your debts. The interest you pay on outstanding debt is only making the other guy richer and you poorer. I like to pay cash for things when I can.

Buying your residence is a good thing if your payment is less than or equal to your rent, which it seems to be in most places. In the US, we get some tax deduction on the interest we pay for our primary residence (but, spending a dollar to save a dime is not good sense). Since you say "flat", I'll assume you are in Europe, and someone else might know better the benefits. The best approach in the US at least is to go ahead and use the banks money, but size your loan such that your payment is extremely comfortable. Then, I paid double my loan payments, and I made 13 payments per year. That way I was able to pay off my 20 year loan in a much shorter period, and minimized the interest that I paid the bank. I also had the fall back position of being able to cut back my payment if I say lost my job, or something critical happened during the loan period. Once you own your "flat", all the money that was going into rent is now available for savings and investment.

Remember that buying the flat, also presupposes that you will furnish it, and need many other things in it. The best advice I can give regarding money is to buy what you need, and not what you think you want. I am happiest when I live frugally, and then reward myself once in awhile for my hard work with something that I truly enjoy. Never try to keep up with the other guy, he probably borrowed the money to buy that Ferrarri anyway.