How to Make Money with Money?
What is the meaning of how to make money with money? Using some of the money you already have, and using it to make yourself even more money. This can be done in a multitude of ways. There are several ways through investing and saving in which you can generate more cash for yourself.
This post is about how to make money with money.
Let’s dive into the top 5 ways on how to make money with money:
1. Bonds
The most stable option! Bonds are similar to loans, only you’re providing the cash instead of borrowing someone else’s. Bonds are typically provided to the government, and in exchange for lending money, you are provided interest payments. These interest payments are on top of the initial value of the loan amount (principal).
2. Stocks
There are multiple ways to make money through stocks.
One is by purchasing a stock, and when its value increases, you sell it at a higher price; therefore, making a profit, and making money.
Another way is if that stock periodically provides dividends or interest payments, that is a great way to make money from stocks. Depending on the stock, you could make a good amount!
3. Interest from Savings Accounts
The most liquid option! Banks usually provide a certain percentage for the amount of money you park in a savings account. Brick-and-mortar banks usually offer lower rates; however, high-yield-savings accounts typically offer higher rates.
This is exactly why it’s strongly recommended to park your emergency fund in a high yield savings account. Put it aside, earn extra cash every month, and leave it until you need it. By then, you’ll have already earned a substantial amount!
4. CDs
Otherwise known as Certificate of Deposits. This is one of the safest options! Very similar to bonds, instead of lending money to the government, you would be lending money to the bank. In return, when the CD matures (depends on the length of time you choose), you earn some interest in addition to the value of the initial loan.
5. Referral Bonuses
Lastly, the most underrated way of making money with money is through referral bonuses! So many banks and programs offer bonuses for referring new customers. Varo, Sofi, Marcus, you name it! Whether it’s cold, hard cash, or higher rates for a certain period of time, you get to earn more money.
To reiterate, the top 5 ways on how to make money with money are:
- Bonds
- Stocks
- Interest from Savings
- CDs
- Referral Bonuses
There you have it! Interested in learning more high yield savings accounts? Check this post out for the best high yield savings accounts!
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