- Grow your money by investing.money, money, money image by easaab from Fotolia.com
Investing money in a fund or business project is a great way to grow your money. Money-market accounts have decently high interest rates, and the stock exchange has the potential to make you rich. However, you must always be cautious to invest in the most stable manner possible for long-term prosperity. Also, keep in mind that nothing is ever 100%; there is never a guarantee of a return on investment. - Money-market accounts have relatively high interest rates (as compared to personal savings accounts). They are regulated heavily by the U.S. Securities and Exchange Commission (SEC). The SEC moderates the kinds of investments that money markets may invest in so that they remain stable. In addition, funds invested in money-market accounts are liquid. Many accounts have debit cards or checks tied to them, allowing for quick use of funds.
- Investments in the stock market range from highly volatile to relatively stable. A stockholder is essentially buying a part of a company. If the company performs poorly, his money goes down with it. If it performs well, he can sell the shares at profit. Stocks have historically yielded more than other forms of investment. They are also generally easy to buy and sell. However, information about a company is limited to press reports and external observations, which may damage investor confidence. Stocks are also more volatile than money market or savings accounts.
- Starting a business has the potential to make you rich. However, most new businesses fail within a few years. Starting a business requires a lot of capital. An ice-cream-shop franchise may cost as little as $60,000 to $80,000 to start, and a large restaurant could cost millions. Starting a business also requires a solid plan, especially if you are looking for other investors to assist you. Information on creating a business plan can be found on the Small Business Administration's website.
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