- 1). Form your financial goals. Determine if you want immediate results to relieve financial pressures or if you would like to save for the future with long-term investments.
- 2). Keep your money in the bank and place it in mutual funds or certificates of deposit, which are safe but have a very low return. Also, when your money is tied up with one of these financial vehicles, you are not allowed to used it unless you pay a stiff penalty.
- 3). Take advantage of compound interest when choosing a way to make your cash savings grow, even if you just transfer it to a high-yielding account. This type earns interest on the interest accumulating in your account.
- 4). Start a small business while you are still working. Grow a business part time until it is big enough to replace the salary from your job. Depending on how much savings you have, you can use your cash as start-up money and as a safety net for slow months.
- 5). Invest in the stock market. Since some stocks are considered risky, don't invest more than you can afford to lose. Consult with an independent stock broker who gives objective advice.
- 6). Buy U.S. Treasury bills and bonds. You buy at a discount and hold it until it matures at face value.
- 7). Invest wisely in real estate to earn more on your cash savings than if it stayed in a bank account. If the real estate market is slow, you may find homes that you can buy and rent for a long-term investment. Appreciating real estate is ideal for investors, but whether or not the prices rise, you can have cash flow from renters before you sell it or keep it for retirement, using a majority of the rent for income.
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