One of our daily struggles has to do with saving and earning more money. There are various platforms out there that allow us to invest cash to make money fast. But if you do not know where to begin, we are here to help you with how to do it.
Most of us have different managing habits when it comes to earnings. We have varied ways of dealing with extra income. Many would love to pamper themselves and use it for entertainment and self-enrichment activities. Some choose to share what they have while others save it and think of more ways to grow it.
Most individuals desire to make their money grow until reaching specific goals. Hence, we are giving you some ways to invest money and let your money work for you (in the fastest way possible).
Stocks
Suppose you begin with a large sum. This is truly one way to make the investment money bring fast, stable returns.
The stock market is one of the most popular and effective ways to invest your money. Stocks are equity investments that are being sold and publicly traded by companies. Purchasing shares allows you to become a stockholder. You gain a “share” of ownership with the company’s profits and assets.
In this way, companies can expand their businesses through your money. At the same time, they pay you from their earned gains and revenues. To date, more than half of American families are engaged with stock investment.
Investing in stocks can make your money grow fast through the companies’ profit and their issued dividends. Growth especially happens when companies have stability since stocks increase in value over time.
Dividends constitute the extra earnings that companies acquire. The money you invest may grow through these incentives provided. These are given in different modes, but usually through additional stocks or cash rewards.
Buying stocks comes in three simple steps…
• Opening a brokerage account
• Funding your account
• Finally, buying the shares
Purchasing stocks is possible through the help of brokers. They are professionals who serve as middlemen. Since they represent the stockholders, they become responsible for all the trading transactions.
If you are not confident enough to deal with stocks on your own, it’s better to let a broker do the work for you. Humans or Robo-advisors handle managed brokerage accounts. Robo-advisors are like investment robots that do the work of a broker through computer algorithms.
Fortunately, online brokerage accounts also exist. If you would like to manage stocks on your own, this is the best for you. The good thing is that most online investment apps offer reasonable assistance for free.
Here are some of the best online apps available for stock trading (they are free and easy to use!) …
• Robinhood
This app has an excellent interface, and it’s easy to navigate. Plus, it allows stock trading without a commission fee. It requires no minimum amount in opening an account.
• Stash
This app is well suited for beginners. It also provides service without a starting minimum amount. Unlike other investing apps, it comes with educational deals and automated guides, although monthly fees are collected.
• Acorns
This app provides a Robo-adviser model, which is ideal for novice and hands-off investors. What’s better about it is that it gives college students an investment management service for free! Using it will deduct commission fees from your account but only at a low price.
• Webull
This app also allows commission-free stock trading at no minimum amount on your account. It’s easy to use and has an engaging interface. Many charting methods are contained here.
• E*Trade
This platform is considered one of the earliest online investing apps. It provides free trading and offers automated investing at a meager price. It has unique features and helps investors by assessing stock risk and making more intelligent trades.
One of the disadvantages of investing in stock is that it’s full of risk. Yes, it provides excellent returns. However, all your invested money can be lost when conditions are unfavorable.
Starting with index funds is one way in which investors minimize the risk for losses. One of which is S&P 500, and it represents the 500 top-performing companies in the United States. It works by letting your money operate in these many different corporations. On average, its recorded return rate is as high as 10%.
There are other index funds available in the stock market. The famous ones include QQQ (an index fund by Invesco), VOO (or Vanguard 500), and FZROX (Fidelity Zero Total Market Index Fund).
In most cases, it takes longer for small capital to increase in value. For this reason, stock investors make analytical decisions in buying several shares. On the contrary, some investors would sell their stocks to gain more profit. They usually do this when the purchased stocks no longer serve their purpose or when doors with better opportunities open.
Bonds
As a bondholder, you make money through the interest paid by borrowers.
Bonds are another type of investment issued by companies. Unlike in stocks, government bonds also exist. These are part of the administrative strategies to raise money to support government expenses.
These are also known as debt securities which provide low risk for investors. The low level of risk is rooted in the fact that it’s almost impossible for a country to reach bankruptcy.
Usually, investors let the money build up or reach maturity. This action results in a higher interest value. On the other hand, some opt to collect quick profits by trading bonds on the market.
While bonds provide less risk, the gains are much lower than ones offered by stocks. More than 100% growth is achievable when companies perform well. This result allows stock prices to increase exponentially.
Buying bonds is more complex than stocks, but it’s possible through a broker, ETF (exchange-traded fund), or directly on the Treasury Direct Website. There are several online brokers for investing in an ETF; some of these are…
• Fidelity Investments
Fidelity is one of the discount brokers which provide service without a commission fee. They offer a unique presentation of ETFs based on your preference. There is no minimum amount required in opening an account.
• Charles Schwab
This broker also provides commission-free trading with no minimum amount for your account. It offers ETFs at a zero-fee commission.
• Merrill Edge
This option gives trading experience at zero commission fee. It requires no minimum amount before you can open an account as well. All ETFs offered are commission-free.
• Vanguard Group
This is another discount broker that offers free trade commission in all ETFs. The minimum amount required to open an account is equivalent to the price of one bond.
• Ally Invest
Like the ones mentioned, this provides a zero-commission fee trading, no minimum amount in opening an account, and no commission fee for all ETFs.
Other stock trading apps such Robinhood, Stash, Webull, TD Ameritrade, and E*Trade also offer ETF investing.
On the other hand, if you opt to buy bonds directly from the US Treasury, visit the Treasury Direct Website. But here are the steps in buying government-issued bonds…
• Open an account in TreasuryDirect
• Submit a bid through an account (click BuyDirect tab)
• Specify the security you want, the purchase amount, and other information. It’s also possible to set up reinvestments by buying another bond from your maturing bond’s proceeds.
• They will then deduct the bond price (that you just purchased) from your bank account (or any source of fund you specified).
• Upon bond maturity, the payments will be directly deposited into your account.
Buying bonds from the US Treasury is also possible through a bank, broker, or dealer.
FOREX Trading
FOREX stands for Foreign Exchange. As the name implies, FOREX trading involves the buying and selling of currencies in the Foreign Exchange Market. It works internationally, and anyone with access to the internet can invest in it.
The worldwide FOREX market is known for its high returns in a short time. Unlike commonly in the stock market, it offers profits even if your chosen currency goes down in value. It’s also easy to buy high-value currency and sell it when its value decreases.
Trading FOREX involves currency pairs. The first one constitutes your “base currency,” while the other is considered your “quote currency”. Here, you can make money fast by purchasing low price currencies which you can sell at a higher price.
Here are the steps on how to trade in FOREX.
• Find a broker and open a trading platform.
• Choose a currency pair and chart.
• Select an indicator to see the trends.
• Check the price and place your order.
• Confirm your purchase.
• Wait for the completion of the trade.
Yes, it’s that easy. Once all these steps are done, it may only take hours for your capital to make a profit. The market is open for 24 hours which means that you can trade throughout different time periods.
However, this type of investment is one of the riskiest for newbie investors. It requires high fundamental analytical skills and a good understanding of the economic status of different countries. Like in stocks, it’s possible to lose all your capital when wrong decisions occur. Make sure to study currency patterns and their buying power before investing in them.
Here are some of the FOREX trading platforms available.
• FOREX
This platform provides low trading fees and a significant number of currency pairs. It requires a minimum deposit of $100, and it takes about 1-3 days for an account to be registered. It can support six base currencies.
• XTB
Like FOREX, XTB offers low forex-trading fees. It also provides fast yet free withdrawal and deposit services. No minimum amount is needed for account operation, and it only takes 24 hours to open one. Five base currencies are supported by it.
• IG
IG is known to be a first-class trading platform online, although it requires high forex-trading fees. It provides excellent demos as well as educational tools for beginners. Likewise, it offers particular withdrawal and deposit options for free. It usually takes 2-3 days to open an account here. It supports six base currencies in the market.
• TD Ameritrade FX
They offer an excellent interface and great customer support at relatively low trading fees. It requires no minimum deposit, and it takes about 1-3 days for an account to open. One of its disadvantages is that it’s limited to US markets and US citizens.
• Saxo Bank
This is considered one of the best FOREX trading platforms because it supports 26 base currencies. It requires high trading fees and the minimum amount for deposit is $10,000. Opening an account usually takes three days.
Business
Investing in a business is one of the best and easiest ways to make money fast. All you need to do is be creative and choose a product you would love to work on. Starting up a business can make you a billionaire.
The good thing about putting up your business these days is that social media can help a lot. Promotion with advertisement becomes handy. It’s also easily accessible, has a broad reach, and can even be free of cost.
Many successful entrepreneurs begin with small capital. Through patience and perseverance, they can grow their money exponentially. Everyone can become successful in the world of business. Yes, you can make your empire too.
There are several ways to do business. Here is a small list of four different options.
1. Developing New Products
One of the rewards of investing in a business is that you can incorporate the things you love. Make new products based on your interests and skills! There is a wide range of ideas that you can work on, whether it’s about fashion, food, arts or crafts, and many more.
Introducing new products in the market is what makes some super-rich. Some have been successful in making lipstick or other cosmetics attractive to shoppers.
Some individuals come up with brands to create things close to their hearts. Most of their advertising and marketing strategies involve social media. Their products can become widely accepted by a lot of people worldwide.
Individuals prove that by just being inventive and focused, tons of money can flow into their pockets. Doing business by combining all your favorites and hobbies can make you good money when you pour your time and effort into it. This endeavor needs courage because it’s the only way for your journey to get going effectively.
2. Franchising Opportunity
If you do not want to start from scratch and have a lot of money, get going quickly with a franchise!
You can make more money by buying an existing business. Franchising allows you to invest in established brands. Therefore, it provides higher success rates and a low risk of failure for investors.
The outcome of a franchise depends on the profits and the ongoing expenses of the business. It can grow your money well when the income outweighs the purchase price of the company. Besides, selling the business at the end can give you deep pockets and a good return on investment.
3. Online Selling
This kind of selling involves an investment of money up front to buy the needed inventory. The inventory can range from $100 worth of products, upward into the thousands even.
After procuring products, get them listed online on a marketplace or two, such as Amazon or eBay. Some things sell fast, some things slow. You may even want to set up your own place, such as an online website containing a store.
Online shopping has become so popular in recent times. Many consumers widely accept it. As a seller, you can take advantage of e-commerce sites and social media in showing your products. These platforms allow you to begin with cheap capital.
With all sorts of products available in the online marketplace, this provides a great avenue for profits. Setting up one doesn’t cost a lot and gives you many opportunities to grow your money. You can do it anywhere and everywhere for as long as you have a tech gadget with internet accessibility. That’s why many people are now engaged in it.
4. Rental Opportunity
Investing in the rental business is easy, and it comes with various benefits. For one, you can start with what you have already. This method provides a lower risk and reduced cost.
If you have an extra car, house, or some land, you can rent them. After some days or months, you will be collecting your income.
P2P Lending
If it’s your first time learning about P2P, it stands for peer-to-peer. P2P lending allows higher rates of return than what is usually offered by banks. The advent of the internet has allowed lenders and borrowers to connect on online platforms.
Here are some of the well-known P2P lending websites.
• Peerform
This platform allows individual investors to invest in fractional loans and create customized portfolios. It has an annual percentage rate (APR) range of 5.99% to 29.99%.
• Prosper
This is the earliest P2P lending website established in the market. It provides numerous choices for investors and allows an overview of the risk and returns. It has been known to give a high APR of up to 35.99%.
• Upstart
Upstart provides great offers for investors. It works through AI technology and allows placing a retirement account with your profits. Its APR range is 8.27% to 35.99% which is very high.
• StreetShares
Here is an option with a unique feature that pairs up borrowers and lenders with the same inclination. Its APR range is from 8% to 39.99%.
• Funding Circle
Funding Circle offers good annual returns for investors. It has an APR range of 11.29% to 30.21%.
Investment Properties
Investing in properties is an appreciable source of passive income. If you have a significant sum of money, you might consider this route. Do make sure to choose assets that appreciate over time.
One of the best forms of making money fast and recurring is to invest in real estate. It provides high cash flow, whether in the form of investment trusts or physical estates. There are different ways to invest in it. Some of these include buying rental properties or investing in REITs or real estate investment trusts.
With the trend of population growth, the demand for housing increases. Property investment may have a fast rate of price appreciation, especially when done in urban areas.
Property investments are more stable than stock or intangible forms. Investors can expect less risk as they provide more steady returns.
Investment Banking
Depositing your money in banks will give you interest in a short time. However, this usually only provides low profits. Saving accounts have incredibly low interest rates.
In contrast, timed deposits offer higher returns upon maturity. One of the most significant advantages among other investments is that banking is generally risk-free and has a stable interest rate.
Leave a Reply