Rather than putting all your money in cold storage, it is prudent to let it work for you through investments. Whether you decide to open a bank savings account, directly invest in the stock exchange market, or choose any other investment avenue, undoubtedly, your ‘additional’ money can make more for you. How profitable are your investments? This depends entirely on the investment option you opt for and the amount of risk you are willing to take.

Whether you want to play it safe or take risk, the following options will definitely help you grow your nest egg.


Certificates of Deposit

Certificates of deposit normally offer a relatively higher interest rate compared to other forms of investment. They range in length and can go up to several years. Because they offer low risk, certificates of deposit are safe investments. The longer you invest your money in a financial institution or bank, the higher the interest rate you will enjoy.


The Money Market Fund

Whenever you open this fund, your bank usually spreads the amount of money you invest over several CDs as well as other short-term investments. You can always retain access to your money. Your investment is secure because of the fixed income rate. With this form of investment, you can always redeem your shares at any time without any penalty.


Savings Accounts

These are the safest of all investments. Normally insured, money is always available to you anytime you need it. The bank pays you a small fee (interest) for allowing them to use your money. The interest rates are usually around 1.5%.


How to Best Use Your Loan Money

In most cases, many people who borrow money usually lack ideas on how best to spend the money. This is because in most cases, people realize that they have more money in their hands than what they actually need – by accident or intentionally. Brazen borrowers take loans without any desire to use them for their intended purpose. Others invest their money thus earn more compared to the interest they pay for in their loan. Lastly, another group uses their loan for buying groceries, paying bills, daily living and so on…

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Often, lenders want to restrict how you spend your funds. Typically, loan interests take into account all the risk a lender expects to take. This depends, on some part, on the purpose of a loan. To be on the safe side, it is prudent to have a plan on how you are going to use the loan you seek even before you get it. The mistake most people make is borrowing without having a clear purpose of the loan. This makes them live a lavish lifestyle with borrowed money. In the end, they spend all their money and do not have anything to show for it.


Author Bio

Grace Hartnett has extensive personal finance coaching and travel experience. She holds a Bachelors degree in Strategic Management and is a CPA. Today, you can easily grab choice loans help with merchant cash advances.