8 Ways To Use Money

If you have a money or paycheck, you have to use it somehow. And with your decision comes a risk: You always have something to gain and lose even in doing nothing. Whether you keep it yourself, who atleast needs to keep track on it, or entrust it with someone else, the question is: How are you going to use it?

#1. Spend it Yourself.

Comment: Spend wisely. As much as possible avoid buying goods that is depreciating in values

#2. Save it and Keep it at Home

Comment: Your money will be kept safe but, the purchasing power of your money erodes by inflation. Meaning, your a hundred bucks will not be the same hundred bucks by next year.

#3. Store it at a Bank

Comment: You have many options for this: 1.Checking Account-for convenient, quick access to your cash, 2.Savings/Money Market Account-bank continuously lends your money for short period of time and collect interest, 3.Certificate of Deposit-lend money for specific time at a fixed rate of interest

#4. Buy publicly owned Companies

Comment: You could be a part owner of companies by buying shares of stocks. If the company performs well, then you're money appreciates. If the company is non-performer, you'll loss your money.

#5. Lend to Businesses and Governments

Comment: You could lend money by buying bonds and securities from businesses and government. You'll earn the interest when your investment reach maturity.

#6. Pay a Mutual Fund

Comment:If you are to entrust your money to someone else, then your choice must be a money manager. They are experts that can do the work for you based on your goals that you want to achieve. The profits and loss are your plus management fees.

#7. Buy a Real Estate

Comment: Buy a home, commercial real estate or even a raw land. You'll gain or lose base on the property value over time

#8.Gamble

Comment: Roll the dice, buy lottery tickets, play on casino and any other game of chance. You could profit if you win or else risk losing everything.

8 Ways to Use Money

(Basics of Investing by Marc Robinson)