Reading Time: 3 minutes How to Turn Your Money into More Money
This is a collaborative post from Ellie Jo and Greg, CFA on how to make money.
In order to turn your money into more money, you need to understand how to make it work for you. There are a number of ways to do this, and some will work better for you than others. This blog post will discuss a few methods that should help you increase your wealth and make your money work harder for you!
1) Invest in stocks and mutual funds
This is one of the most common pieces of advice you’ll hear when it comes to turning your money into more money. And for a good reason! Investing in stocks and mutual funds is a great way to grow your wealth over time.
When you invest in stocks, you’re essentially buying a piece of ownership in a company. As that company grows and becomes more successful, the value of your stock will increase. Over time, this can lead to sizable profits.
Stocks tend to be more volatile than bonds, but they also offer the potential for higher returns. So if you’re comfortable with a little risk, investing in stocks is a great way to turn your money into more money.
When you invest in mutual funds, you’re pooling your money with other investors and investing in a basket of securities, which could include stocks, bonds, and cash equivalents. In addition, mutual funds offer professional management by people like Kevin Canterbury and diversification, which can help to reduce risk.
Consider investing in your company’s 401k. We are big advocates of maxing out your 401k.
2) Start a business
If you’ve got an entrepreneurial spirit then starting your own business is a great way to turn your money into more money. Of course, there’s no guarantee that your business will be successful. But if it is, the rewards can be substantial. Not only will you have the potential to make a lot of money, but you’ll also have the satisfaction of knowing that you built something from scratch.
Starting a business takes a lot of hard work and dedication, but it can be an incredibly rewarding experience. If you think you have what it takes to be a successful entrepreneur, this could be an excellent option for you!
3) Save money
This may seem like an obvious one, but it’s worth mentioning. One of the best ways to turn your money into more money is simply to save it! By putting your money into a savings account or a certificate of deposit (CD), you can earn interest on your deposited funds. The more money you save, the more interest you’ll earn, and the faster your account will grow.
Saving money is a great way to secure your financial future and ensure that you have funds available for unexpected expenses. It’s also a good idea to have some cash set aside for investments or other opportunities that may arise. If you can discipline yourself to save a portion of your income regularly, you’ll be in good shape to turn your money into more money.
4) Invest In Real Estate
Investing in real estate has worked out well for many people (including us). The idea is that you buy a rental house and then a tenant pays rent. Over a long enough time horizon the mortgages are paid off. If you buy the house with cash your returns are that much higher. In our experience we had a roughly 10% return on our rental houses.
In Conclusion
These are just a few of the many ways you can turn your money into more money. Do some research and see what options make the most sense for you. Then, with a little effort and planning, you can start growing your wealth today!
Greg is a Chartered Financial Analyst (CFA) with 22+ years experience in Financial Services. He has held numerous FINRA Securities licenses (series 7, 63, 65, and 66), and is an expert on Investment Products and Financial Planning. Greg has 22+ years experience as a real estate investor and degrees in Psychology and Philosophy.
Greg has been quoted/interviewed in Yahoo Money, Yahoo Finance, USA Today, Authority Magazine, Realtor.com, Business Insider, and others.
Greg is an avid runner, and the father to identical twin girls and their awesome brother. His love of budgeting and his kids led him to join The Great Resignation in 2021.
Disclaimer: Any Financial Tips on ChaChingQueen are general and informational. Speak with a professional about your specific situation.