Money makes the world go around. Money is the root of all evil. Maybe neither of these axioms are true, but money is what we trade for things we need and want. Having money leads to comfort, freedom, and choice. If only there were a way to generate money without trading time. Actually, there are as many ways to make money as there are to lose money.
Saving or Loaning Your Money
Regular bank interest rates are low right now, but as the economy heats up, interest rates will more than likely rise. Some already have. If you have some cash, you are not spending. It can earn you money. You may want to shop around for the highest rates. Some options other than your regular bank are high-interest online savings accounts and high-yield checking accounts. CD laddering is also an option. Although, CD rates are also on the low side right now.
Peer-to-Peer lending services offer investors and borrowers a way to loan and borrow money without dealing with the banks. According to general websites, rates run from 6% to 40%. Rates are based on the borrower’s credit rating, how much they owe, and other factors. For lenders, with increased risk there is increased gain. Still, this is an out of the box way to increase the interest on the cash that you have. Just be careful and make sure you have done your research and don’t invest anything that you can’t afford to lose.
Investing in Real Estate, Stocks, Bonds, or Mutual Funds
Traditional investing is a great way to grow your money. You can buy real estate or avoid the hassle and invest in a Real Estate Investment Trust or REIT. The old buy and hold strategy for stocks and bonds will make money for the patient. Index funds like the S&P 500 are a good option and often outperform managed mutual funds. There are also many mutual fund options to explore and learn about.
Trading Stocks or Currencies
If you like picking stocks. Opening a brokerage account and investing money to buy and sell stocks of your choice is an option. The biggest mistake traders make is letting their emotions drive their choices. It’s a good idea to be mindful of this.
Trading currencies on the Foreign Exchange or Forex is another option. There are many methodologies for trading on the Forex from mt4 indicators to mtf indicators. These tools can help traders keep on top of the fast-changing markets and keep their emotions out of the decision process.
The Wonderful World of Arbitrage
You can also use your cash for plain old arbitrage. This just means buying something at one price and selling it at a higher price. The difference is your profit. If you have a store or sell on Amazon, you can purchase items at a wholesale price and sell them for a retail price. You can also buy and sell used textbooks or dabble in thrift store finds. The ways to buy and sell and make a profit are endless.