How to Make Money With Money That You Already Have?
Making money with money is an age-old concept. If you want to learn how to make money with money, then you will have to start to invest it in order to make it work for you, rather than putting it into cold storage. Whether you directly invest in the stock market, open a savings account or use or make use of any other investment options, you will be able to make more money with your "extra" money.
The amount of risk you can bear to take and the plan you choose will determine how lucrative your investments will prove to be and how much more money you will make with your money. Nonetheless, whether you are a play-it-safer or a risk-taker, if you are really interested in learning how to make money with money, then there are various investments that you can make.
Savings Accounts
If you want to make a really safe investment, then it is best to invest in a savings account. Usually, these accounts are insured and you will have access to your money whenever needed. By investing your money in a savings account, you allow the bank to use it, and for that, the bank pays you a fee, which is referred to as interest.
The Pros: Your money will be available to you at all times for you to withdraw without any penalty. Investing in a savings account is not risky in any way.
The Cons: Typically, you will be offered low interest rates on your investment, around 1.5% and at times, keeping up with the rate of inflation will become difficult too.
Certificates of Deposit
If you have been wondering how to make money with money and you are willing to invest your money for a particular amount of time, then you have the chance to get a slightly higher interest rate. You can do this by investing in accounts known as Certificates of Deposit or CDs and the duration of your investment will range up to a few years.
The Pros: Since a low risk is offered by CDs, this makes them a much safer investment. You can get a much higher interest rate if you agree to keep your money in the financial institution or bank for a long period of time.
The Cons: To open a CD you will have to make an investment of at least $500, and if you withdraw your money before the agreed timeframe, you will be charged costly penalties. So, your money will not be available to you until the agreed time period ends, in case you need it.
Money Market Fund
If you open a money market fund the money you invest will be spread over numerous CDs, and other short-term investments by your bank. You will have a fixed income rate, your money will be comparatively secure and will be available to you at all times.
The Pros: Generally, these investments are quite safe, and you won't be penalized if you need to redeem your shares.
The Cons: The interest rate you receive on a money market fund will be equal to that of a CD or even lower. You might also have to be careful of keeping a minimum balance in your account, and you might get penalized if your balance falls below.
The amount of risk you can bear to take and the plan you choose will determine how lucrative your investments will prove to be and how much more money you will make with your money. Nonetheless, whether you are a play-it-safer or a risk-taker, if you are really interested in learning how to make money with money, then there are various investments that you can make.
Savings Accounts
If you want to make a really safe investment, then it is best to invest in a savings account. Usually, these accounts are insured and you will have access to your money whenever needed. By investing your money in a savings account, you allow the bank to use it, and for that, the bank pays you a fee, which is referred to as interest.
The Pros: Your money will be available to you at all times for you to withdraw without any penalty. Investing in a savings account is not risky in any way.
The Cons: Typically, you will be offered low interest rates on your investment, around 1.5% and at times, keeping up with the rate of inflation will become difficult too.
Certificates of Deposit
If you have been wondering how to make money with money and you are willing to invest your money for a particular amount of time, then you have the chance to get a slightly higher interest rate. You can do this by investing in accounts known as Certificates of Deposit or CDs and the duration of your investment will range up to a few years.
The Pros: Since a low risk is offered by CDs, this makes them a much safer investment. You can get a much higher interest rate if you agree to keep your money in the financial institution or bank for a long period of time.
The Cons: To open a CD you will have to make an investment of at least $500, and if you withdraw your money before the agreed timeframe, you will be charged costly penalties. So, your money will not be available to you until the agreed time period ends, in case you need it.
Money Market Fund
If you open a money market fund the money you invest will be spread over numerous CDs, and other short-term investments by your bank. You will have a fixed income rate, your money will be comparatively secure and will be available to you at all times.
The Pros: Generally, these investments are quite safe, and you won't be penalized if you need to redeem your shares.
The Cons: The interest rate you receive on a money market fund will be equal to that of a CD or even lower. You might also have to be careful of keeping a minimum balance in your account, and you might get penalized if your balance falls below.
