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    Posted June 19, 2014 by
    newrochelle, New York
    This iReport is part of an assignment:
    Student voices in journalism

    Where Should I Invest My Money?


    If you have some spare cash which you’d like to invest in order for it to earn even more money, there are several things you can do with it. Because of the variety of places you can invest your money, you have choices about how long you leave the money, how much money it can earn or potentially earn and how low or high risk you want the investment to be. Here are some of the top places to invest your money.


    1. Savings account A traditional savings account is one of the safest places to invest your money. As long as the bank is insured to give you the money back if they get robbed or any other disasters take place, you don’t need to worry about losing anything. In fact, you will gain interest, although it may be quite low depending on the current interest rates where you live. In general, savings account are “instant access”, which means that you can withdraw your money at any time, and the only requirement the bank may have is that you give them a few days’ notice and bring some identification with you at the time of withdrawal.


    2. CD account A CD (certificate of deposit) is another safe place to invest your money, and you can expect slightly higher interest rates here than in savings accounts. However, CDs have a time period for which they last, which isn’t ideal if you want to leave your money in the account for a long period of time. Most of them last around 3-10 years. Depending on the type of account you get, there are also other rules, and unless you get a no-penalty account, you won’t be able to withdraw your money without paying a fee. However, the higher interest rate rewards this and if you won’t need your money for anything for the duration of the account, this is a good option. Websites such as investopedia, cdrateprophet and  Wikipedia will be able to help you find the current interest rates for CD accounts in your area.


    3. Business or venture This is the most risky of these three options, since there’s no guarantee of getting your money back unless that’s the agreed condition, which is extremely rare in the case of businesses and ventures. You may choose to invest your money in a business which you’ve started yourself, which is slightly less risk, since you have more control over what happens with the business and how the money is used. However, investing money in somebody else’s business venture is more risky since you have trusted them to do with the money what they have said they will do. Usually, if you invest a large amount of money, you will own a certain percentage of the business. This gives you some security, since if anything happens to the business, at least you’ll still get money out of it as a part-owner. One of the things which people consider a great advantage to investing in another business is that they don’t have to do much work, but the potential to earn a lot of money is there. If the business is successful, you could find yourself earning profits from the company for the rest of your life, which is why so many people choose to invest in a business venture. While the potential earnings are much higher than those of a savings account or CD account, the potential to lose all or some of your money is also greater, but if you’re willing to take the risk, find a good business which you believe in and go for it!

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