When you win money, you want to spend it right away. And that’s always fun, but what if you could double, triple or even quadruple that money? Well, you certainly can do that! Here are some ways to make your money work for you so that you end up with more money than you first started.
First, determine your short or long-term goals. For example, are you trying to save money for a college tuition, a vacation home, or retirement? You can always have a checking and savings account, and put money into the savings account. However, it’s better to have an investing account that will actually make money for you.
If you are saving for retirement, you can put money into a 401(k), which is usually offered through a company. This money adds up so that you have a large amount for your retirement. Similarly, an IRA (individual retirement account) allows you to make tax-deductible contributions that are saved up for your retirement.
You can also decide what you want to invest your money in. Some of the common investments are stocks, bonds, funds and real estate. Then, decide if you want to do your investing by yourself and self-manage your accounts online, or if you want to have an investment management company do it for you. For those of us who understand investing and the market, it might be easier to self-manage your account. But for the rest of us who don’t, it will be easier to hire an investment manager or financial adviser.
Investing your money and planning for the long-term can double, triple and quadruple the money that you originally put in to that account. It’s a smart idea when planning for the future—if you want to have a retirement, or a college tuition for your kids, or pay off your mortgage one day. You don’t have to start big when investing money, maybe just a few hundred or a thousand dollars. But if you won $2,500, how would you invest your money so that it works for you and your future?