The Best Way to Invest Money

From buying shares of stock to investing in higher education, there are a number of ways to create a return or profit. Read on to learn how you can invest money in secure and long-term options that can increase revenue beyond the initial investment or start-up costs.

Difficulty: Moderately Challenging

Instructions

1. Buy shares of a large company like Microsoft, Johnson & Johnson, or Harley-Davidson. Consider a large investment to gain a larger return. Invest through dividend reinvestment plans for a $100 investment or more. A DRP will allow you to forgo a third-party broker and directly buy from a company.

2. Invest money in a 401(k) plan that requires your employer to match the dollar amount of each contribution. Because these contributions are not taxed, it is best to avoid substantial fees and back-end taxes with an early withdrawal.

3. Build a general savings or emergency savings fund. Invest the money in a high-interest-bearing savings or money market account. The larger the investment, the greater the potential for a 2- or 3-point increase over the annual percentage yield given to account holders with more limited investment options. Negotiate increases or bonuses for not drawing the account beyond a certain dollar amount. In some cases, this dollar amount can range anywhere from $10,000 to $50,000.

4. Invest money in a college education, continued education training, course materials or graduate work. The job market is highly competitive and consistently brings a need for more training, especially as trends and new laws and practices go into effect. Invest in your future with a new accounting course, business management degree or marketing and advertising seminar series.

5. Work with a broker to lock in a competitive price for gold or work online as an individual buyer. Either way, you can buy gold to create a long-term and secure investment that will always yield a return.