How to Multiply Your Money
If you want to multiply your money you’re in good company. 🙂 I love finding ways to make extra money. This first started when I was paying off debt to have more money to throw at the debt, and now it’s all about setting up multiple revenue streams.
There are many ways to multiply your money. The Internet is full of them. Some of them are good, like investing. Others not so much, like wasting hours filling out surveys to make a few measly dollars. If you want to multiply your money so you can accomplish goals you have in mind, hopefully, you’ll find at least one new method to use.
Multiply Your Money By Lending it Out
You read that right. One of the best ways to multiply your money is by lending it out to others through a peer-to-peer loan. This is a great option if you have little money to invest with or you want to diversify your investing.
The two main P2P sites, Lending Club and Prosper claim to offer returns of anywhere between 5-9%. Of course, you’ll want to spread your risk and realize there is a risk of default that can impact returns. However, that’s a big reason you should spread out the money you invest as much as possible. Personally, I think this is a great way to multiply your money – you get to help someone get an unsecured personal loan and you get to grow your money. Two birds, one stone!
Invest in the Stock Market
Investing in the stock market is the go-to for multiplying your money. I know the stock market can be risky. I know you’ll lose money. You know what? You’ll also make money – you can’t do that without not having risk. The key to investing is to realize what you’re investing the timeframe involved. Assuming you’re saving for retirement it’s likely decades away from now but don’t let that time lull you to inaction.
You also don’t want to give into the excuse of having little money to invest. If you have only several hundred dollars or less, it makes a difference and can be invested. There are many online brokerages, such as Motif Investing that allow you to start investing for as little as $250 or less. If you don’t have that now, you likely can get to that amount relatively quickly by putting aside a small amount each month.
Consider this, the Center for Retirement Research states that if you wait to start saving for retirement until age 45 you have to put away three times as much as you would if you had started at age 25. The point? Let time do its magic as it’s one of the easiest ways to multiply your money.
I thought I was talking about ways to multiply your money? If you do it right, even shopping can help you grow your money – in fact, I think it can be one of the best ways to make extra money before Christmas. I love to shop on Amazon. It means I get to avoid the malls and I can do it from the comfort of my home. It doesn’t get much better than that.
How does shopping on Amazon help multiply your money? Easy – you get money back from your shopping through a cash back site. Not every cash back site allows you to make money from shopping on Amazon though TopCashBack does. TopCashBack allows you to earn 8.5% cash back from each Amazon purchase and up to 70% on other sites. I hate to spend money, but if I can make money back then, I’m much happier.
Sign Up for A Rewards Credit Card
Believe it or not, but a credit card is a great way to multiply your money. Not any credit card will work, it has to be a rewards credit card. You can either travel hack like my wife and I do in order to travel for free or you can sign up for a rewards credit card that gives you cash back on all of your purchases. Some of the best rewards credit cards allow you to earn 5% cash back, if not more, on your regular purchases. This isn’t to mention the sweet sign-up bonuses many offer to get your business.
Ax the Phone Contract
When you can multiply your money and save at the same time, it’s a deal too hard to pass up. How much are you paying for your cell phone bill? If you’re paying $150+ per month like I was then it’s way too much! There are many cheap cell phone plans to choose from now that allow you to save $100 or more per month – the best one being Republic Wireless that has plans starting at $5 per month. Don’t spend the savings though – stick that $100+ per month in your brokerage account and watch it grow.
Open A Savings Account
Savings accounts are the old-fashioned way to multiply your money. I remember opening my first savings account and watching it grow as interest rates were good. That’s not the case anymore. That being said, there are still ways to multiply your money through a high yield savings account.
We have most of our savings at Discover Bank Online as they offer one of the best current rates available at .95%. No, we won’t get rich off it but it does allow us to make some money on our savings buckets. There are several other options available for high yield savings though all seem to be around the .8 – 1% rate.
Additional resource: If you want to multiply your money by investing in the stock market but feel you have little money to invest, don’t let that hold you back! You can invest in the stock market with little money through a number of options. One option is TradeKing. TradeKing allows you to open an online brokerage account with no minimum balance requirement and is one of the cheapest brokers out there. You can open an account today with as little as you want and start building your wealth. In some cases you might even qualify for a new account promotion.
What are some of your favorite ways to multiply your money? What’s the craziest thing you’ve done to make extra money? How much was the interest rate on your first savings account?