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In a volatile economy that does not seem to be calming down any time soon, people are constantly on the lookout for the best ways to make their money work for them. Anyone lucky enough to have expendable income is at a great advantage when it comes to finding sound investments, as financial institutions are offering a premium for long term account holders to keep them loyal in a time when many people are withdrawing their money for personal reasons. By taking the time to consider all the options available, you can find a quality place for your money while maintaining the amount of risk you are willing to take.
Below are a few of the best ways in which you can make your money work for you and keep working:
Find an online savings account
One of the best ways to ensure your long term financial viability is to look for an online savings account with high interest rates. Financial institutions can often give customers even better deals online than offline because of the decreased cost of doing business online. The overhead, rent and personnel costs of attracting a customer are all virtually nil when doing financial business online, and institutions are more than happy to pass that savings along to you in the form of higher interest rates.
Start a small business
Anyone with expendable income and a little time is at a great advantage in a volatile economy. If you can find a service that you can perform to improve the lives of others around you in tough times, you might be able to start a small business. The upside of a small business is that it immediately removes the ceiling from your earning potential and gives you almost complete control over your own financial destiny especially if you have some business intelligence training.
Spread your money around for tax deductions
If you have the money to spend, you also have the money to help yourself in terms of finding tax deductions and using them to the utmost. Many tax shelters actually prefer more affluent patrons, and putting your money in the right places can actually help you save some of the money that may be exposed from the full brunt of the taxman.
Start a long term savings account
If you have not maxed out your 401k or IRA contributions, do so. If you have, start a Roth IRA with a new business venture and place even more of your money into your own protective custody with a tax sheltered account. Do your best to lock in long term interest rates that are high with fixed accounts. Look on the Internet for good introductory deals that banks are giving. Many of them are actually matching initial contributions on long term accounts.
Invest in a family or friend’s business
Perhaps you have an associate with a great idea but no funding. Peer to peer lending is sometimes the most effective way to make a great profit off of an idea from the ground up. Make sure that your associate or family member has their ducks in a row, and test the idea before you invest fully. However, just as with a small business of your own, the earning potential is virtually limitless.
Support the local arts
Odds are that there are many local arts programs in your local area that are not receiving the funding that they need to survive. Those with expendable income can raise their profile considerably in the community by donating to these types of programs. Although the rewards may not be monetary, the status that is gained along with the perks of being treated as a VIP during high class social events can lead to associations that can increase your cash flow in ways that you might never have access to on your own.
Invest in blue chip companies
There are many different companies that have been able to survive and even thrive in a recessionary environment. The recession is good for the savvy investor in this way – he or she is able to identify, without a shadow of a doubt, the companies that have a sound business model. Companies with stable dividends are an especially good way to make money in an unstable economy, as the dividends negate any short term losses.
Invest in local politicians
Perhaps the best investment that does not directly yield monies is investment in local politics. Giving money to winning candidates can improve your quality of life in ways that money simply can not buy.
Purchase precious metals
Things such as gold watches or pure silver silverware are incredible investments that can be used in every day life. They will also go up over time and hedge any other investments in the wake of a recession.
Stock up on commodities
Prepare yourself for a rainy day by stocking up on commodities while you have money in the bank, so that when money is short, you don’t have to.
When it comes to properly investing your money, you can never be too careful. There are plenty of investing opportunities available that will make your money work more for you than a traditional savings account will. So if you are looking to continue on with your wealth and make it grow without much effort, consider giving one of the aforementioned a try.