Investing: Making your money work for you

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There are two ways to earn an income. One, you can work and be paid money for it, which is what the rest of the world does, and two, you can make money by investing it in something, which is what the rich do.

In between those, there are lots of ways to make your money work for you. Here are some:

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 • Invest in mutual funds.
 
This is good for people who do not like the risks of investing in the stock market or foreign exchange. Investing in mutual funds is safer than investing in the stock market, as with mutual funds, your investments are diversified.



• Invest in the stock market.

Potentially, there is a lot of money to be made in the stock market. However, it is also a place where you can lose a lot of money due to making the wrong investments. It is also possible to diversify your investments in the stock market, but you will need to invest more money to do.

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 • Invest in real estate.

Investing in real estate is potentially very rewarding. However, a lot of people are put off by this because of the amount of money it requires.

• Invest in the foreign exchange.

Due to the advent of the Internet, foreign exchange trading became easier to do. The amount you earn depends on the strength of a particular currency, say the Euro versus the US dollar.

So how about the money you have in your savings account? You actually lose money instead of earn money because it earns interest at rates that do not keep up with inflation.

The Esplanade Capital website is a great resource for you to start having your money work for you.