All of us probably have the same goal when it comes to our finances. We all want stable income, or if possible, overflowing money. We want it that way for a lot of reasons, and we try different things just to reach financial freedom. Maybe we can say that money cannot buy happiness, but in this generation, money always matters because it’s hard to propel in today’s world without it.
Why Do We Need Money?
Others are saying that you do not need to buy expensive meals. As long as you are eating every day, you are in a good place! However, if what you eat is not nutritious enough (healthier tends to cost more, after all), you will quickly get sick, and eventually, you will need money to get better. While it’s true that you don’t need to eat out in extravagant restaurants, you do need to afford good quality food that’ll keep you healthy.
The next argument that you probably have towards eating healthy is that you can always plant vegetables and fruits. However, you still need to pay to take care of them. If fertilizers are used, you have to buy them. Even when you’re just starting out, you still need to buy the seeds. If you get all of that for free, then great! However, for most people, this wouldn’t even be possible if they’re living off a flat or apartment with not much land to work with.
What am I getting at with all this? Well, all I’m saying is that whatever the case may be, money will undoubtedly put you in an advantageous position. It is no secret how a couple of Grants and Franklins can generally put you at a better place in life.
Why Is Having More Money An Advantage?
For one, if you have the cash, you can pay for all your needs. Along with your needs, you can also afford to buy your wants. You can fulfill your dreams, do whatever you want, go wherever you want, etc. I remember when someone said, how can you dream when you are surviving? And it’s 100% true!
If you live surviving your everyday life, you cannot afford to spend your time, money, and resources on other things – it all goes to your primary needs and necessities.
How Can We Have Doubled, Or Even Tripled Money?
There are a lot of things you can do to have extra cash in your pocket or to have your money in the bank multiplied (see here). One of these is by investing your money. Now, what is investing, and how do we do it?
Learning How To Invest
Investing is one of the best ways to grow your finances. Having investments means you are buying something that has financial significance, and often, you profit from selling it at a higher price. Examples of investments include annuities, bonds, cryptocurrencies, mutual funds, stocks which can be bought in any investment platform.
For annuities, you are buying an insurance policy in exchange for periodic payments. Some are using this as their retirement plan.
For bonds, it can be likened to letting another person borrow money, and you get interest payments for it.
Mutual funds are when you invest funds in a broader sense, like having investments in different companies where they are diversified to bring in more profit.
Buying stocks, otherwise known as shares or equities, are also some of the most well-known investment strategies where you buy shares off established companies and eventually sell them for a higher price to make a profit.
Last but not least, Cryptocurrency is a newer investment option. Some examples of this type of currency are Litecoin, Euthereum, and the ever-popular – Bitcoin.
What Is Cryptocurrency?
As mentioned earlier, this is a newer investment option. Bitcoin is a prominent example of it, so let’s learn more about it below:
Bitcoin is a virtual currency that you may use to purchase or sell products or services. A bitcoin is technically money that can be stored in a digital wallet application. You may send and receive Bitcoin through various applications and use it to pay for goods online – and much recently, offline too! I’ve already seen a couple of stores and restaurants accepting bitcoin as payment in recent years!
Anyway, you may buy Bitcoin with real money and make it an investment. You just have to choose the right platform for investing. For example, Blockfi Bitcoin interest rate is up to 6%. Another example, Litecoin's interest rate is 5.25%, etc. The interest rate differs on different platforms.
Discussing more on how to earn interest in Bitcoin, let us take further examples from Blockfi. This platform works like a bank where you may buy and sell crypto, borrow cash, and any other services like that of a bank. There is what we call Blockfi Interest Account (BIA), where you can earn monthly interest payments depending on what type of asset you put into Blockfi. All you have to do is deposit Bitcoin in your account (or any other cryptocurrency you have), and you will then earn in your holdings!
After knowing some information about Bitcoin, your next question may be: Is it safe? Is cryptocurrency, in general, safe?
Well, we all know that in any financial decision, especially investments, there is always risk involved. As for the term "safe", we could have a broader discussion on that, but to relate it to the topic we have now, we can have the following things to take note of:
- With the development of technology, transactions with cryptocurrency were made easier and secure. You may start to worry less about hacks and frauds because the security systems of platforms used for cryptocurrencies are at their highest level.
- As for the growth of your money, we can say it is very risky because the price and the value of it are very volatile (learn more here: https://www.cnbc.com/2018/09/12/watch-out-for-these-risks-when-investing-in-bitcoin.html). It may go up and down. But the good thing is that when it goes up, then that's an increased earning option for you.
All in all, we can still say that before involving in something, especially financial matters, it is always advisable to do a lot of research and seek advice from the experts before making your decisions.