The Secret To Making Money Work For You
Hint: it all depends on where your money is sitting right now.
How Can I Make My Money Work For Me?
Money that is sitting at home or in a bank chequing account won’t make you money. Period. In fact, money that isn’t invested properly will lose its purchasing power over time due to inflation. The secret to making money work for you is to put your money to work.
Your goal is to move your money away from your chequing account and put it to work.
Money has to be invested in order to generate more money.
There are countless types of investments, including stocks, bonds, savings accounts, GICs, mutual funds, exchange-traded funds, segregated funds, hedge funds and real estate. All of these investments have different risk-reward characteristics.
Some of them may be riskier than others. As such, caution and due diligence must be enforced prior to putting money into any type of investment.
The Simplest Switch: High Interest Savings Account
While you’re contemplating where you should invest your money, in the meantime, the simplest and fastest thing you can do is move your money from your chequing account to a high interest savings account which will award you a small return for absolutely no risk or cost.
There are many high interest savings accounts in Canada, some offering more interest than others. High interest savings accounts are just like regular savings accounts, except they provide a higher interest rate and come with a bunch of other perks, all free of charge.
EQ Bank’s no-fee, risk-free, high interest Savings Plus Account offers 1.50% interest on every dollar saved. So, if you have $20,000 in your savings account, that’s an extra $300 a year that you can make just from interest. Plus, get $20 when you sign up to EQ Bank.
Major Takeaways
Money will lose its value over time if it isn’t invested properly.
Keeping your money in a chequing account will not generate any more money for you.
The very least you can do is hold your money in a high interest savings account.
We hope this helps you become more financially independent.
As always, feel free to reach out to us if you have any questions. We are more than happy to help.
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