Let money work for YOU!
A wise man once said...
Some people say money buys happiness, you don't have to believe this saying. I think, however, that I speak for us all that some more money doesn't hurt and can make life a little easier.
What if I told you that you can let money work for YOU? Sounds crazy and difficult right? It turns out it really isn't...
Let's find out how!
What does working money mean?
Letting your money 'work' for you means (simply said) that your money starts earning money for you.
A simple/safe way to let your money work is letting it collect compounded interest.
The money that you put in will collect a small percentage of interest each month or year. The longer you keep your money 'working,' the more interest you'll earn.
Interest is the easiest and safest way to let your money 'work' for example: Your bank gives 1 percent of interest over the money you have in your savings account each year, you have $10 000 in your account. The first year you will earn: "10000*1 percent = $ 100," 100 dollars is the total amount your $10000 has earned you!
It gets even better! The total amount of money in your savings account is now $10100, and you'll get interest over all that money!
In year two you will earn: "10100*1 percent = $ 101"
As you can see you start to earn more in year two, this is because you will start collecting interest over your earlier interest!
Letting your money collect interest on your savings account is probably the safest and easiest way to let your money 'work,' unless your bank goes bankrupt your money is safe. :)If taking a little more risk is more your thing you could consider investing in the stock market to let your money 'work' for you. But please be aware that you can lose (all) the money you put in!
Investing in stocks can give you a higher return but also a chance of failure.
For example: You invest your $10000 in a stock that is expected to give you a 5 percent return, the first year your potential earnings are "10000*5 percent = $ 500."
If you reinvest the money the second year your potential earnings are "10500*5 percent = $ 11025."
As you can see you will earn money over the money you earned in your first year!
That's what I call putting your money to work. ;-)