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How to Use Money to Make More Money

Updated on November 12, 2017
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Lady Rain works as a daytime stock trader and writes about crafts and hobbies. She likes travelling and making papercraft models.


You can't really make money out of nothing. Most people go out to work to make money. In exchange for your hours at work you get paid. You also need to pay for clothings, transport fares and some food in order to go to work. That is why you still need some money to make money.

Instead of using your money and going to work just to earn money, you can save some of what you earn and use it to make more money. This is what smart people do and they are doing it everyday without telling you. You must also be careful with how you are going to use money to make money. Some people call it investing. Others call it making your money work for you or making money with money.

Set up an online store

Start a small business

You can buy items at wholesale and resell them. If you are working a five-day job, weekends are the best days to do a small business because the weekend markets and craft markets are open. First you will have to find a wholesaler who can give you the best deals on the items. After you have purchased the items at wholesale prices, you can resell them for a profit at the weekend markets. You need to include the cost price of your items, rental of your market stall and other expenses to work out at what prices to resell your items in order to make a profit. Popular items at weekend markets are clothings, fashion accessories, craft items, toys, electronics items and gadgets.

Sell your items online, create a website for your online store and give choose a memorable name for your website.

Interest from banks

This is probably the easiest way to earn passive income. Find out which bank offers the best interest rates for different types of accounts. Term deposits and some investment accounts offer better rates than everyday savings accounts. Go for those accounts that give compound interest instead of interest calculated at maturity dates only.


Invest in stocks

This is a great way to use money to make money. However, it can be a tricky way to make money if you have not done it before. A lot of people think playing the stock market is the quickest way to get rich but it is definitely not true. There are risks that you need to be aware of, otherwise you could lose a lot of money there. You will need to do a bit of research to understand how the stock market works and how to start buying shares. There are guidelines on successful stock trading that you will need to know before making your first trade.

You will have to start reading some books on trading or work with someone who is knowledgeable in this area. You will also need to find a reliable stockbroker and open a stock trading account.

Invest in bonds

Bonds are a lot easier to invest in than the stock market. You can use your money to purchase a few bonds. Do some research on some of the bonds that are available and buy those that pay better interest rates. You would not be able sell the bonds within a number of years but you will get good interest for the money you have invested. It is similar to leaving the money in a bank account for a few years but you get a higher return on your money.



If you are an avid stamp collector you would probably purchase some rare stamps. Some people invest in vintage coins and collectable artworks. Anything that is rare is often valuable. There is a good worldwide market for rare stamps and coins which are often sold in auctions and traded on eBay.


Sell on eBay

Sign up with the eBay partner progam and learn how to become an eBay partner . If you already have a wholesaler supplying you with a range of items to sell at the weekend markets, you might want to consider becoming an eBay reseller. Find out what are the popular items other sellers are selling on eBay and work out how much profit you will earn from selling similar items. Do not go for items that will not make any profit. Do not stock up on too many items in your inventory or else you will end up with many unsold items in storage if you can't sell them off quickly.

Invest in property

Investing in real estate is more difficult than the above methods because it requires a lot more money to earn money. If you have saved up enough money to buy an investment property, the best way to earn passive income is to rent out the property. You will be receiving regular income from the rental. The equity in your home will increase over time. Your money is working hard for you in a slow and steady process to earn more money until you sell the property for a big profit.

© 2012 lady rain


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