The issue of increasing financial resources is interesting and relevant regardless of the place and time. When money began to be used as the equivalent of any material wealth, the question arose - how to make it work? Money makes money quite simply, but you need to figure out how it happens.
Instructions
Step 1
Money in the bank or under the pillow?
When keeping money at home, they will definitely not do themselves. On the contrary, inflation, which is always and everywhere, will reduce their nominal value. Within a year, the amount hidden under the pillow will be able to purchase benefits by 10-15% less. Although bank deposits are not the best way to increase money, they can save them.
The percentage that the bank will compensate for the use of funds will cover inflation. And the mechanism is pretty simple. The money received is issued by the bank on credit to other citizens. Those, in turn, return the loan with interest. The bank keeps some of them for itself, and pays the rest for deposits.
Step 2
Multiplying money with securities
A real increase in capital can occur through purchases of stocks, bonds, futures, options. This is where you can really make money work for you. How is money multiplied by buying stocks? For example, there is a certain company. Its cost is equal to 1000 conventional banknotes. The company needs money for development, and its management decides to issue shares.
By paying 10 conventional banknotes, you can buy 1% of the company's shares. Thanks to the competent use of the money invested in the enterprise, its value has increased. And after a certain period of time the company began to be valued at 1,500 conventional banknotes. And the owners of 1% of the company's shares can now sell them not for 10, but for 15 banknotes. In addition to this, shareholders receive a part of the company's profit, which is distributed among them in proportion to the invested funds (shares).
Step 3
Money works in business
In this area, you need a competent plan and special knowledge. Any well-built business should be profitable. Depending on the industry and scale, these profits can be very large.
A citizen creates a business and invests in it - he buys goods, rents retail space, hires staff. Then he receives income that compensates for his costs. Also, a citizen makes a profit - the difference between expenses and revenue. Part of this money he keeps for himself, one might say, as a salary, and the other part he uses to expand the business. As a result, revenue will increase. Thus, money in business will make money.
