How to Grow Your Money This Year

Are you interested in learning about ways to grow your money so you can have more funds set aside in savings for an emergency, your future, your kids, or anything else? Then it is time to consider the various ways that you can go about investing your money this year. Continue reading to learn about a few paths that you can consider taking. 

Indices Trading

If you want to invest your money to help it grow, indices trading is worth learning about. But what is it? Put simply, when you think of indices, think of the S&P 500, the Nikkei 225, and the FTSE 100, as just a few examples. These reflect multiple companies in a market, so when you are involved in indices trading, you are not working with individual stocks like you are when you do stock trading. Instead, you are working with the stocks of many businesses. 

Forex Trading

Another way to grow your money is by trading in the forex market. In this market, you trade currency pairs by predicting which currencies will increase in value and which ones will go down in value. If you can predict these things accurately, you might be surprised by how much money you can make. And the best part is that you don’t necessarily need to invest a whole lot of money in this market to see a decent return. Plus, with the right broker and a demo account, you can get plenty of practice and support to make your trades more wisely. 

Stock Trading

If you don’t want to trade indices, you could instead trade individual stocks. This gives you the chance to invest in companies that you believe in and want to support, and that you believe will increase in value. However, when you trade stocks, keep in mind that you can do more than invest in businesses. Here’s an example: you can also invest in resources like gold by purchasing stocks in gold mining companies. In other words, if you want to invest in gold but you don’t want to buy the physical bars or coins to store securely on your own, you could invest in gold stocks instead. 

Interest Earning Bank Account

If you don’t feel comfortable with taking on any amount of risk when you’re working on growing your money, don’t worry, as you have options. First, check your local banks to see if they offer any savings accounts that earn interest. Compare your options so you can open an account that will give you the highest amount of interest with the lowest fees. Beyond that, ask about a certificate of deposit (also known as a CD) that might give you even higher interest rates. Just bear in mind that, with a CD, you may be penalized if you remove your money from the account before a specified length of time has passed. With either of these routes, though, the nice thing is there isn’t any risk like you get with forex trading, stock trading, and index trading. 

No Matter What, Invest Wisely

Regardless of which path you decide to take to grow your money, whether you take on a lot of risk or none at all, just bear in mind that you don’t want to put all of your eggs in one basket. In other words, diversify your investment portfolio as much as possible. This can help reduce the risk of losing all of your money. Think about it: if you invest all of your savings in stocks that perform poorly, you could lose it all, so use various strategies to invest smarter.