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Tuesday, December 9, 2008

How to make your money grow in the shortest time frame?

I just received a comments saying this: "How can your $1 make into $10 and in the shortest time frame?"

In order to do that, you must invest in something that give u 1000% return or sell an $1 item for 1000% profit.

But so far the most powerful investment instrument I have ever come across is compound interest. That is using the principal amount to earn interest and after that both the principal amount and the interest amount will earn you interest.

Example:

$1000 x 5% = $50

$1050 x 5% = $1102.50 and so on...

on the 15 years, the amount will be $2079.

Using the rule of 72, you will need 14.4 years to double your principal amount.

Pls give comments if you have better ways to make your money work hard for you.

6 comments:

Stephanie PTY said...

The absolute quickest way to have more money is to cut expenses. It's the only immediate way to get more money - and it's the only tax-free way, since you've already paid taxes on your income!

The other investment that has the best return is paying off high-interest debts.

Barring those two, investment is a risk/reward proposition. It depends on when you're going to need the money again. Need it in less than a year? Your best bet is a CD, which has a guaranteed return. But that return isn't very high!

If you don't need it for ten years or more, than you can invest in stocks and get those higher returns. It's all about the time frame!

Sam said...

Hmmmm....

By cutting expenses and paying off debt is not making more money but its a form of saving more money.

There is many type of Cash Deposit (CD) around and there are some that pay as little as 0.25% and also as much as 5%. So you got to look around banks website or go talk to them about high yielding interest saving account.

Stephanie PTY said...

Yes, it is a form of saving more money - but that can be more powerful that earning more (because it's tax free, and faster). Sure, at a certain point, you can't (or don't want to) save more, and then you have to start looking to earn more. But savings is more immediate.

I think people tend to forget that, or ignore it.

I haven't quite seen any CD rates as high as 5% - some close, but you have to put your money away for more than a year, which doesn't really fit the qualifier of "growing your money in the shortest time frame." CD rates just aren't as high as they were a year and a half ago!

Sam said...

I have just opened up a Foreign Currency Saving Account with 4.11% interest rate. The only thing is that you will lose money if the currency exchange rate drop and you will need to keep this account for at least 6 months.

The gain is the interest rate and also when the currency exchange rate goes up.

Torrent said...

guys try HYIP, i invested my money in HYIP(your principle will double in six to 12 month), also choosing HYIP is very important(i prefer panamoney.net and oilmongers)

for more financial advice and investment visit www.ecashbot.com

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