How to Multiply Your Money
If you’ve been a reader of Frugal Rules long, you know that we’re all about trying to find ways to grow our money. Many will promote scams or other nefarious ways to multiply your money, but there is generally no need to go exotic with your methods as it’s often the simple ones that work the best. This is by no means an exhaustive list but rather, a few simple ideas to get the creative juices flowing.
Online Savings Accounts
Unless you’ve lived under a rock the past number of years, you likely know that interest rates are terrible – worse than terrible in fact. What is a person to do if they’re wanting to be simple and multiply their money without much thought? As opposed to throwing it into a savings account at your local bank, you’re generally better served by going with an online bank as they can generally offer you better interest rates and many times over 1%. It’s not much, but it’s better than .01%.
If you’re at a loss for where to start when it comes to putting money into an online account, a simple internet search will allow you to find many easy access savings accounts online, such as Everbank. Just make sure that whomever you choose that they’re insured and even ask around for recommendations.
Invest in the Stock Market
If you’re wanting to multiply your money then investing in the stock market can be another good option to consider. The key to remember with investing money in the stock market though is that there can be much more risk involved than by simply putting it in a savings account or CD. That said, many have been drawn to the stock market as interest rates are so bad and can often be beat by investing money in some solid dividend-paying stocks.
If you’re sitting on cash you can open an online brokerage account, such as Scottrade in an attempt to multiply your money further. I use Scottrade myself as I find their platform relatively simple to use. Just make sure that before you go investing in the stock market that you have a sound investment plan and know what level of risk you’re comfortable with. At the very least, you’ll want to keep track of all your money in order to make sure you’re not spending more on investment fees than you need to. I use Personal Capital for that as it not only analyzes all of your investment accounts, but also allows you to keep track of all your financial accounts in one location free of charge.
Sell Your Wares Online
Ok, I know this one does not really fit in with putting money in savings accounts or investing in the stock market, but it can be another way for you to multiply your money. While I am not suggesting that you launch a business akin to American Pickers, it is possible to make money by selling things online. I know that many get started by simply buying things at garage sales or Goodwill stores, cleaning them up and turn those items for a profit online. It may take some work at first, but it can be a nice way to multiply your money and have a little fun at the same time.
Photo courtesy of: Foxumon