Making Your Money Grow

Q.1. How can I make my money grow?

One of the easiest ways to have your money grow is to put it in a high interest savings account and have compound interest work for you. Investing your money is also another way to have it work for you. The rate of return on your investment will depend upon the nature of the investment. As a general rule, the greater the rate of possible return, the higher the risk. Consult a financial adviser and know your risk tolerance.

Q.2. How do various investments help to make my money grow?

Investments can help your money grow in one of three ways. Some investments, such as a bank account or Guaranteed Investment Certificates (GICs) earn interest. Other investments such as stocks pay dividends. Still other investments could be ones that you buy now and hopefully sell at a later date for profit. These include stocks, bonds, mutual funds and capital items such as art and real estate.