6 Completely Legit Ways to Turn Money Into More Money

Can you really turn money into more money? Is that possible? It really is if you know how to invest that cash.

If you have some money socked away for a rainy day or have managed to come into a sum that you’re not sure what to do with, you shouldn’t spend it without consideration first. It’s often a good idea to use it to invest in something else and then make more cash.

How do you do that, though? Isn’t investing just for people playing the stock market?

Even if you’ve never touched the stock exchange before, don’t worry. There are plenty of ways you can double the cash you have now and turn that initial sum into more money.

Turn money into more money safely

Firstly, you need to understand that there are safe, genuine ways to turn your money into more money. There are also lots of ways that are not genuine or even full-blown scams.

If you’re here reading this, you’ve likely seen other sites that promise that you can get rich quick. They ask you to invest your cash and say you’ll be making money in no time.

As a savvy person, you, of course, are going to see a pyramid scheme when you come across one. With so many out there, it’s very easy to feel as though there are no genuine ways to make more money off the sum you already have.

The fact is, though, there really are safe ways to go about it. What you’ll need to understand is that they all have an element of risk.

All these methods are slightly risky, as you’re investing your money with the hope that you’ll get more money back in the long run. However, you’re more likely to make that money back and make more on top.

The way you do it won’t be fast and will often take some work. If you’re willing to put in the time and effort, you can make that money work harder than ever.

When given an investment opportunity, you need to do your research. Don’t be afraid to ask questions, and walk away if you have the slightest feeling something’s off.

Remember, there are always opportunities to make more money. Just because you walk away from one opportunity doesn’t mean there isn’t another one around the corner.

How to turn money into more money

So, how can you make more money with the money you already have? Here are some ways you can do just that.

1. Invest in yourself and your skills

Firstly, let’s consider using that money to invest in you. You can spend it on training for yourself, in several different ways.

For example, are you thinking of making a career change? To get a foot in the door with your new chosen career, you’ll need to get training in your new field.

Do you need to get more training to take the next step in your chosen career? Do you want to take advantage of bonuses for getting training?

If the answer to any of these questions is yes, then you should look into getting training with your initial cash.

When you invest that money in yourself, it’s turned into potential future earnings. If you get extra skills, you become more valuable and, theoretically, earn more.

Do some research into what you can do to make yourself more valuable as a person. You may find you can earn so much more if you have an extra qualification.

So, imagine you invest $20,000 overall into yourself, with the goal of earning $5,000 more per year. Over the next 30 years, that’s an extra $150,000 in your pocket.

Essentially, you’re getting a 650% return on that money, which is pretty incredible.

If you want to do this, you’ll need to do your research, but it can pay off handsomely in the long run.

2. Invest in index funds

This is a tried and tested method that many people have used, borrowing the methods used by some of the richest people in the world. You may not become the richest person in the world off this method, and you’ll need some patience, but it pays off.

You’ll want to use this method if you want to invest in your retirement fund. It takes a long time to pay off but is something you should consider.

Firstly, you need to know how index funds work. Imagine you have $1 right now.

Nothing is stopping you from spending that $1 now, but once you do, it’s gone. If you invest it into an index fund, then you’ll be making it potentially worth ten times as much in the long run.

This works thanks to compound interest. When you invest that dollar and reinvest all the interest you make off it, you’ll be able to easily make more money off the back of it.

If you’re going to do this, it helps you to reframe the value of cash in your head. For example, say you have $900, and you want to buy the newest smart TV.

You certainly could spend that cash and enjoy the TV. Instead, you could also invest that cash in an index bond and have $9,000 in thirty years.

When you look at it that way, you’ll be able to save money where it’s reasonable and invest it in your future. Of course, you shouldn’t invest every penny you have, as you won’t be able to enjoy life.

If you ask yourself whether it’s better to buy the thing now or invest it for later, you’ll be able to make smarter decisions with your money.

3. Start your own company

When you have that initial lump sum, you can easily invest it in another company and watch the money grow that way. However, if you want to be more proactive, you can, instead, start your own company with it.

This is something that works if you were already thinking of becoming your own boss and starting a new business. Even if the business is very simple, you’re going to need some money to get it off the ground.

For example, you’ll need to buy equipment to start working. That could be as simple as a PC or laptop, or it could be specialized machinery that you need to get started.

You’ll also need to consider how you’ll cover your costs as you start. You’ll be spending money on products or supplies, and they need to be funded somehow.

Plus, consider if you’ll need to quit your current job to get started. If you need to focus full time on the new company, the money will cover you while you’re waiting for profit.

For example, say you want to start your own company as a real estate investor. To get started, you’ll need to buy a property you can rent out or flip.

You’ll buy that property and put cash into improving it. You’ll then make the money back when you rent it out or sell it on.

However you use that money, you’ll make more money with it when you see a profit come in. You can see some pretty incredible returns this way.

It is a riskier way to make more money, as you’re putting trust in the fact your business will take off. That’s why it’s so important to do your research and understand the market you want to go into.

If you do, you can easily make more money this way.

4. Lend out the money

Yes, this is a genuine way to make more money on the back of the initial amount you have. You can lend that cash out to another party and make it back, plus interest.

There are several ways you can do this. You can lend money out to governments or businesses or even to other people thanks to peer-to-peer lending.

Who you can lend money to will depend on how much cash you have. Unless you have a lot of money to hand, you won’t be lending to companies.

If you want to try lending to the US government, you can do so through treasury bills and bonds. You can select the amount of time you want the debt term to be, such as 6 months, 1 year, or longer.

You can pay the amount set at auction or set a bid price. When you get repayments on the money, you’ll get interest payments too.

There are other benefits as well, such as being exempt from state and local taxes.

If you want to try peer-to-peer lending instead, you can use a site like Lending Club or Prosper. Again, you can lend out the money and get interest back on the loan as it’s repaid.

This method is somewhat less risky than other methods, such as starting your own business. However, you want to be aware that there’s more risk if you’re offering an unsecured loan.

5. Invest in a 401(k)

This isn’t the most exciting way to make money off your money, not by a long shot. However, it’s one of the best and most reliable ways of investing your cash.

It’s reliable as it’s something you’ll usually do through your employer. When you invest in the plan, you’ll get an automatic $0.50 for every $1 you save.

It’s also important to know that the money that goes into your plan comes right out of what your employer reports to the IRS. Essentially, that means each $1 you put in only costs you $0.65 to $0.75.

Are you not able to access a 401(k) plan? Then you can use a traditional or Roth IRA to invest.

You don’t get the match from your employer here, but you still get a good tax benefit.

The Roth IRA is a good idea for younger people especially. You won’t spend anything in taxes on your capital gains, so you’ll keep more of your money.

If you’re earning a low income right now, then you can get a government match on your savings. The Retirement Savings Contributions Credit reduces your tax bill by up to 50% of your contribution.

6. Pay off debt

Now, this isn’t the traditional way to make money off money, but it’s something that will help you save money in the long run.

This doesn’t work like investing, as when you’re investing, you’re expecting money back on that initial investment. However, here you’re saving money in the future.

If you’re paying off a good chunk of debt, you won’t need to pay interest on it in the future. For example, if you pay off $1,000 on a 7% loan, that’s $70 roughly that you won’t need to spend in interest over the next year.

It’s a good idea to sit and do the math, seeing how much interest you can theoretically knock off your debt if you use this cash to pay some off. Often, it is very much worth it.

If you have a good amount of debt built up and have the cash to spend, it’s an excellent idea to drop it into your debt and pay some off. Even if you can’t pay the whole amount off, don’t be put off.

Even if you can only knock about 10% off your debt, that’s 10% less interest you’re going to spend. Therefore, you’re going to save much more cash as you pay off that debt overall.

As you can see, there are all kinds of ways you can turn money into more money. If you have a sum burning a hole in your pocket, you can invest it in one of several ways.

Spend the cash on yourself, set up a company, invest in index funds, and more. There are lots of ways you can make that money work harder.

Soon, you’ll see you have much more money than what you started with.

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