How to Make Your Money Grow

Dec 29

How to Make Your Money Grow

It’s perhaps been discussed to death and covered so many different times that it’s becoming somewhat of a cliché, that being just how exactly one goes about making their money grow. The principle is simple — invest whatever money you have with the aim of ideally having it generate an income passively, but that’s perhaps where all the barriers start forming.

The reality is a lot different because when people look towards growing their money through these passive investments, the ones which are readily available don’t yield the kind of returns which make them worth the effort to pursue them. Options such as putting money in your savings account yield meagre interest rates which are way below inflation, so too investing in bonds and the likes.

Information like this which is generally available to anyone who can type a phrase into a search engine is often watered down in some way or focussed squarely on generating some sort of advertising value, or even trying to spin sales. If you want to grow your money sustainably you have to get a bit more involved than just parking it somewhere in a generic investment channel which is available to everybody. These often just enrich the financial institutions offering the money through the charges they levy on the service as well as loaning all the money out to other clients and charging interest on those loans.

There are many ways to get involved beyond just throwing your money into some investment which is available to everyone. You take a look at the property market for instance — you wouldn’t want to get into property exclusively for the capital gains, as a house flipper. What you’d perhaps rather want to do is invest in something like property for cash flow in addition to the capital gains. So you’d rent the property out in addition to paying it off and waiting for its value to appreciate, which also means you could put it up as collateral if you ever wanted to explore other ventures through some financing.

You also have to spread your risk and the general rule of thumb is that higher risk means higher reward as well, but such risk can be minimised through enriching your knowledge of the market and analysing it with the view of getting an expert-level knowledge of it. For example, casino.com is a good investment if you know exactly what you’re doing and if you have some in-depth knowledge of the gambling industry.

If you do your research with regards to the gambling industry, to expand on the online casino example, you’ll be fully aware of the fact that any gambling establishment is bound by the regulations of the industry to return a set percentage of the house takings to the gamers as winnings. This means that if you develop a strategy that incorporates the fact that a certain percentage will at some point be given back, you’ll never refer to your gambling exploits as a bit of fun or as taking a chance. You’ll refer to your gambling exploits as a good investment through which to grow your money quite effectively.