If you already have money then you should be looking at ways to make even more money with it. You need to make your money work as hard as you can for you as you have an advantage that a lot of people do not have. In this article we will show you some proven ideas on how to make money with money.
All of the techniques that we explain below focus on providing you with a richer future. There are risks involved with some of them but they will provide you with the best returns on your money. So with that said let’s look at how you can get a good return on your money.
1. More Money for your Retirement with a 401k
If you are still working at a job and have money to invest then you should consider investing in a 401k. You probably already have one of these courtesy of your employer and they will be contributing to it which is great. How do you make more from your money using a 401k? Simple, just match what your employer is contributing.
Now a 401k is not going to make you rich it is just one of the things that you should use to make your money work harder. There is an $18,500 contribution limit so just be sure that you put in the same amount as your employer. This is a risk free way to get a good return on your money. Be sure to start early with this one!
2. Open a High Yield Savings Accounts
A savings account with a high street bank will pay you peanuts in interest. Typical interest rates for these accounts are around 0.01%. You would need to invest an awful lot of money to make this worth your while.
The good news is that there are high yield savings accounts available that have interest rates of 1% or higher. These are FDIC insured and you can find them by searching for online banks. There are also comparison websites that compare high yield savings accounts. So if you want to count on a safe return then go for a no risk high yield savings account.
3. Roth IRA’s
You can get incredible growth with a Roth IRA and it is one method that we strongly recommend in this how to make money with money article. It is a retirement account that has tax benefits that you really need to take a look at.
A Roth IRA is different to a 401k in that it will leverage income after tax. When you reach retirement and you want to make a withdrawal you will not have to pay any tax on what you have earned which is great. There are limitations with Roth IRA’s and at the time of writing the maximum contribution per year is $5,500 every year.
4. Market Investing
Stock market investing does carry some risk but if you get the right advice and do the right things you can be successful. The most risky form of stock market investing is to dip in and out to try and profit from market fluctuations. If the prices go down then you will need to minimize your losses by selling immediately. We do not recommend this strategy.
What we do recommend is being around in the markets for the longer term. Yes stocks can go up and down but good stocks usually even out over time and produce a net gain. You have to have faith in your investments and leave your money in the markets for a while.
There are investment brokers that can advise you if you have a lot of money to invest. They will probably recommend a diversified portfolio of investments so that you spread the risk. If you don’t use a broker or consultant then learn everything you can about the markets and the companies you are interested in. This is how to make money from market investments the smart way.
5. Real Estate Investment
OK now we are certainly increasing the risk. There are absolutely no guarantees that investing in real estate will give you the returns that you want. But many real estate investors are killing it and getting returns that are much higher than the stock market and other forms of investment.
There are a number of options available to you with real estate investing. You can find a property in a good area that needs some attention and purchase it at a low price. Then you will need to renovate the property and sell it at full market price. Obviously you need to work the numbers to see if the potential for profits is there.
Another strategy is to buy a property that you can rent out to generate income. This is “buy to let” and many real estate investors have a portfolio of these properties which provide a significant monthly income. On top of that the properties are usually rising in value so you will make a profit when you decide to sell up.
When it comes to making money from existing money real estate investing can offer you some of the highest returns possible. But there are risks and when you find the right properties there are usually a few obstacles that you need to overcome.
How to make Money with Money Conclusion
In this post we have shown you 5 great ways that you can get a good return on your money. Some are risk free and others carry risk. Usually the higher the risk the greater the chances of a higher return.