Put Your Money To Work

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It might sound cliché, but there is something to be said about putting your money to work. You should strive to reach a point financially where your money is working for you rather than you working for your money. That is, you want to earn interest from the money you’ve saved instead of paying interest on a credit card or loan balance. Here are two advanced ways that you can put your savings to work. These go beyond simply putting your money in a low interest savings account.

Binary Trading

put your money to work

Image via Flickr by Stock Market

Binary trading is a great investment method for active traders. The earnings are capped, so you need to be active if you want to make consistent profit from binary trading. However, with capped earning comes capped risk.

To put it as basically as possible, binary trading is a simple yes/no proposition where you can buy a binary option in relation to the performance of a certain stock. For example, will ABC stock reach $300 per share by 10:00 a.m.? If you buy the binary option, you’re basically saying that yes, it will. Binary options are only sold between the value of $0 and $100. That’s the most you can lose or earn on any one trade.

In the previous example, imagine that the binary option is offered at $48. If you buy that $48 binary option and the ABC stock does reach $300 by 10:00 a.m., you will have won the option. This means that you earn the remaining $52 and your original $48 for a total of $100 (minus fees). If the option does not “go binary” you lose your $48. The bidder on the other end earns your money. Binary trading is a zero sum game, meaning that $100 is the max and that you win the other bidder’s money (or they win yours).

Real Estate

Real estate is high risk but high reward. Of course, the level of risk depends on the market where you’re buying and the level at which you invest. Many people are intimidated by real estate because there seems to be a barrier to entry. That is, if you don’t know about the real estate market, you might feel like an outsider. Remember that there will be people to help you along every step of the way, from the lender to the real estate agent and the property manager. You’ll never be alone.

The best real estate investments are income properties where you receive a monthly rent check from tenants. This income is basically an added bonus on top of the property. You are chiefly investing in the property in hopes that the value will go up and that you’ll be able to sell it down the road for much more. Smart real estate investment will usually outperform more conservative methods such as CDs or savings bonds.

Real estate and binary stock options can both be gambles. However, if you do your research and find the right fit for your investment, they can both put your money to good work.

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