Last Christmas, we probably received cash as gifts from some of our wealthier or purportedly wealthy relatives. Some have received a substantial amount, while others may have received a relatively small amount of money. Others may have received big bonuses or Christmas incentives.
So what happened to the money that you received? Did you spend all of it already? Are you still keeping it under your mattress? Are you planning to buy some personalized gifts with your Christmas bonuses ? Here are some ideas ways on what to do with that money.
1.) Put your money in the bank – Contrary to what most people think, banks are not only a place where you could keep your money safe. Banks offer several ways wherein you can make your money grow. Savings account only offers small interest rates. Time deposits on the other hand offer a higher interest rate. Time deposits however are sort “long term investments” since you cannot withdraw your money for a long period of time. This will however give you a higher interest rate. Banks also offer government bonds, which is a very secure form of investment since this is backed by the government. There are times when government bonds offer a very high interest rate. The interest rates fluctuate depending on the need several factors. Take note however that most financial planners believe that bank savings cannot be categorized as “investments” because of the very low interest rates. I definitely agree. But developing the discipline to put your money in the bank in regular intervals is the basic foundation of financial management. It is not so much in the amount of interest, but it is the cultivation of discipline in putting money aside for investments.
2.) Invest your money in the stock market – In most countries, only a few segment of the population invest in the stock market even though stock market investment by the general public is higher in western countries than in third world countries. The reason for such may be attributed to two factors. First, there is a lack of technical knowledge as to how to do it and secondly, there is this misconception that it takes a lot of money in order that you could start investing in the stock market. While it is true that investing in the stock market takes some sort of a technical know how, it is not as difficult as what others think. The stock market follows the basic rules of supply and demand, as any other type of market does. You only monitor the business news everyday, at least twice a day if you invest in a stock market where the change in prices is so fast. In countries where there is not so much market activity, you can monitor the news at least every other day. You also need to read about the companies which you are going to invest your money into. With regards to the money, it does not take a lot of cash to start investing in the stock market. The Internet revolution makes stock market trading easier than before. A lot of brokerage firms and even banks are now offering online trading and monitoring. There are even free technical advice and market reports that is being given by them. You might want to check out my how to invest in the stock market articles. Just click on the “Financial Management and investments” category.
3.) Start a business – Some people think that you need a very big amount to start a business. There are lots of business opportunities that do not require very big capital investments. You can get ideas from entrepreneurship magazines or through researching the Internet. There is some home based business that you can even do during your spare time. The possibilities are just endless.
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