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Are you looking for tips on how to invest and make money daily?
First of all, is it even possible to invest and make money daily?
Has anyone done it before?
If yes, exactly how do they make money daily by investing?
Most importantly, can you replicate their success and get the same results?
Is It Possible To Invest & Make Money Every Day?
So, is it possible to invest and make money daily?
Yes, it is possible.
To make money every day from your investment, these investments MUST be risk-free and have guaranteed returns.
There are three commonly known ways to earn money from your investment daily, although the money is not paid out daily.
The first one is to put your money in a fixed deposit which guarantees you your capital plus a fixed interest income.
And the second one is to put your money in government bonds or treasury bonds.
What that means is that you lend money to the government and get paid interest.
As it’s highly unlikely the government will go bankrupt, your investment should be safe and your returns should be almost guaranteed.
The last one is relatively less known to a lot of people, but it’s what money-savvy people are doing to maximize their returns and grow their wealth.
High-Yield Money Market Account
A high-yield Money Market account is different from the checking account that you open with your banks.
If you put your money in a checking account, your bank gives you an interest rate which is close to zero.
What about a fixed deposit?
A fixed deposit will also give you higher interest compared with checking accounts.
However, your money will be locked in for a fixed period of time (e.g. minimum 12 months).
That’s rather a long time, especially if you have an emergency and you need your money urgently.
That’s where a high yield Money Market account comes in.
For all of us, we keep quite a bit of liquid cash to help pay our daily expenses.
Many of us might even build up quite a sizable emergency funds.
To help you make the most out of your liquid cash, you should always find a high yield money market account to park your money.
Not only will you earn high interest on your liquid cash, but you will also have quick and easy access to your money (i.e. there is no lock-in period like your fixed deposits)
The money market account is considered risk-free because your money is insured by Federal Deposit Insurance Corporate up to $250,000 per depositor and per insured bank.
One of the best high yield bank accounts that I recommend is CIT Bank which offers the following benefits:
- Earn over 11x the national average
- Quick and easy access to funds
- No monthly service fees
- 24/7 secure & award-winning banking
- FDIC insured
- Deposit checks remotely and make transfers with the CIT Bank mobile app
So, I highly recommend that you put your liquid cash and emergency funds in high yield savings account with no maintenance fees and you can also withdraw any time you want.
The interest rate that CIT Bank is offering is one of the highest, if not the highest in the country.
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Alternative Ways to Invest & Make Money Daily
Although putting your money in a fixed deposit or money market account can guarantee a return on your money, the returns are rather small.
So small that it might not even help you keep up with the inflation which is about 2% a year.
What happens when your money is NOT earning at least 2% a year?
Your money loses its purchasing power over time.
In other words, your wealth is decreasing.
If you manage to earn an average return of 2% a year, you are only preserving your wealth, not growing your wealth.
So, for your extra funds, it’s highly advisable that you invest it in assets that can at least generate 2% or more a year.
Historically, the average return of the S&P 500 from 1957 to 2018 is about 8%.
If you had invested $1,000 in the stocks every year from 1957, it would be worth $1,984,007.20 now.
That translates into a daily earning of $84.
Warren Buffet amasses his fortune by investing in great companies and hold on to it for decades.
Okay, you might not relate to Warren Buffet’s story.
Here’s another example.
A Vermont-based janitor and gas station attendant called Ronald Read, had quietly amassed an $8 million fortune on a below-average salary, by investing in the great businesses such as Procter & Gamble, J.P. Morgan Chase, CVS Health and Johnson & Johnson and hold on to them for a very long time.
That translates into a daily earning of about $300!
And Ronald Read was not an investment professional.
In fact, he didn’t even go to college.
Yet, he could achieve great success in stock investing.
This only goes to show that anyone can do it if you are willing to put your mind into it and be patient with your investment.
You see, the key to making money in the stock market is to invest in the long term because the stock market in the long term is always going up as shown below.
There might be stock market declines or economic recessions from time to time, but the market will always go up over time.
If you are just starting out, you should check out my definitive guide on how to make money investing in the stock market.
Rental Property Investing
Investing in rental property is another way you can make money every day, although you receive the rent payment once a month.
Compared with stock investing, rental property is less liquid and might require quite a bit of capital to get started.
With stocks, you can buy and sell stocks very quickly and get back your money.
But, when it comes to property, it takes a very long time to find a suitable buyer.
So, if you need your money urgently, there is no way you can just sell your property on the same day or the next day.
And if you are in a hurry to liquidate your property, it puts you in an unfavorable position to get a good price on your property.
What is more, buying a property is not just clicking a few buttons.
You have to engage a realtor, lawyer and banker to help you finalize the deal.
The whole process is not only time consuming, but it is also costly.
There are also the constant apartment maintenance issues and tenant issues that you have to deal with.
What if you get a problematic tenant with late or missed payments?
Or what if your apartment always needs repairs?
It’s not the “set-and-forget” type of investment like stock investing.
Lastly, here are two of the biggest risks with rental property investing:
- Apartment vacancy (i.e. you cannot find tenants to rent your place)
- Increase in interest rate (i.e. your monthly mortgage payment will go up and thus reduce your returns)
So, I would recommend stock investing any day over rental property investing.
How To Invest In Stocks & Make Money Daily
So, exactly how do you invest in stocks and make money?
As you already know that the key to making money daily with stock investment is to invest in great businesses and hold it for the long term.
Now, how do you pick stocks to invest in?
And how do you tell whether these stocks are going to perform well in the long term?
There are many different strategies to pick stocks.
Stock analysts often estimate the company’s future earnings and then use mathematical formulas to value the business, thus arriving at a fair price for the stock.
But, you don’t need to know all these to find good stocks to invest.
Look around, what companies are you buying products or services regularly?
In another 10 years, do you think they will still be around and you will still buy from them?
Here’s what it’s called common sense investing.
Recommended Resources To Help You Invest & Make Money Daily
With close to 4,000 stocks listed on US stock exchanges alone, it’s impossible for anyone to scan the entire stock market for good investment opportunities because you simply don’t have the time.
Also, there are always other people who have more knowledge and experience in a particular industry than you, so you would probably miss some great stock ideas that are hard to discover on your own.
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