How to Invest Money: The Smart Way to Make Your Money Grow


Who doesn’t want to make money?

After all, money helps you in buying the various luxuries of life. Whether it be a better life for your family or the vacation you always wanted, money is in the epicenter of it all.

Yet, wealth is quite a scarce thing. Even in the USA! 

In fact, according to Forbes, 78 percent of workers in the US live paycheck to paycheck. This means that most people make just enough to make ends meet.

Owing to crippling student loans, the saving rate of most millennials is negative 2 percent. In other words, millennials end up spending 2 percent more than their earnings. This gives rise to more debt.

Does this mean you can make enough money to satisfy your various needs? Not necessarily! If you are smart about it, there are various ways you can make your money grow.

1.      Make a habit of saving

The first step to making money grow is not spending all of it. You need money to be able to invest it, right?

And no! This investment shouldn’t come from a loan you took specifically for this purpose. This is because each penny you owe someone, needs to be compounded when you give it back.

So, it is better to invest money from your savings. The first step to saving money is knowing your expenses and learning the art of budgeting. Divide all your expenditure into two categories- necessities and luxuries.

Necessities are those expenses that you can’t cut down. This can include transport costs, groceries, house rent, and bills. Luxuries are all the cheat meals you have and the clothes you buy that you don’t need etc.

Slowly reduce the money you spend on luxuries and save the amount instead. Even if you keep your savings in a bank account, owing to inflation and increasing interest rates, you can end up accumulating a good amount of wealth.


Once you have enough money saved up, you can go ahead and splurge some as a treat. For instance, you can visit the various scenic destinations Buffalo has to offer. Park your vehicles in a close-by city of buffalo parking, find quality restaurants and sights, and enjoy!

 But, ensure you are financially stable before you go on such short vacations.

2.      Keep it less risky with Mutual Funds


Once you have money stored in your bank, you should look beyond- merely keeping it in saving accounts in your bank. Instead, it is better to invest in any of the many financial assets available.

One great financial asset is a mutual fund.

What is a mutual fund?

It is a financial asset that pools money from different investors and is managed by professionals. The accumulated money is then used to purchase different securities. Compared to other types of investments, mutual funds are less risky options.

There are various reasons for this. Firstly, since mutual funds are professionally managed, you don’t need to worry about losing your money because of your lack of expertise. Additionally, since mutual funds are invested in diversified portfolios, there is a significantly less chance of incurring a loss.

3.      Bonds aren’t a bad bet, either!

There are different kinds of bonds you can try your luck at. What are bonds? Well, they are debt securities that allow you to raise capital for the people who sell the bond to you. Bonds can be used to finance new ventures and projects.

The safest bond to invest in is a treasury bill. While there is no such thing as a completely risk-free investment, treasury bills are as close as you can get.

If you are well-aware of the ins and outs of bonds, you can even try private bonds. However, know that the risks will be significantly higher.

4.      Never put all your eggs in one basket


Regardless of how profitable one investment option may seem over others, it is never a smart idea to put all your eggs in a single basket.

If you want to make your money grow, you might want to research multiple options and divide your money among them.

For instance, even though mutual funds are an excellent option, you shouldn’t put all your life savings on it. Rather than this, opt for other investment methods like treasury bills, securities, and real estate.

While you are at it, make sure you only choose generally profitable assets. Blindly investing in a plethora of options is not the right approach. The idea is to invest in different but valuable tools so that your overall return can be maximized, and hence your money can grow at a fast pace!

5.      Switch it up, as your priorities change

As you grow older, the chances are that you need and the time value of money change.

For example, for a 20-year-old, getting double the amount of the initial investment in the shortest time might be your choice. For this, you might want to choose high-risk investments that yield quick returns.

But, as you grow older, you are not as inclined to get quick money for everyday luxuries. Instead, you think about the long-term profitability. Here, investing in low-risk securities that deliver consistent returns might be a suitable decision.

So, don’t think that just because one investment option feels right for you today, it will always be the right decision. Rethink your priorities after every few years and switch up your portfolio accordingly.

Verdict: Make your money grow!

Money can buy a lot of things. And you don’t have to miss out on any one of them.

Not if you follow the rules to the tee.

  • Save up
  • Say no to debt
  • Choose the right financial tools to invest in and diversify to protect your money from losses

Be smart with your decisions, and you will surely witness the growth of your money!

Do you think that other ways can make your money grow?

Share your secrets so that others can benefit too.

Author bio
Andrea Bell is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs. You can find her on Twitter:@IM_AndreaBell

Whether you are a crypto trader or an investor, keeping a tab of the crypto
Global Rotary Blasthole Drilling Rig Market was valued US$ 2.79 Bn in 2019 and is

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.