Yes, money can indeed make money if one invests at the right place and time. Money has the power to increase the individual’s wealth.
Money is the basic resource for any business. One must have a good idea of using the resources in a better way. To do that individual must do budgeting. By budgeting, one can understand the inflow and outflow of the money. You will get a clear idea of what you are spending, rather than spending without a plan.
After investing in any business if you get back the invested amount that means your business is stable your money is making money, if you get less money than the invested money that means you are losing your money is not making money, if you get more money than the invested amount then you are in profit your money is making more money.
Always remember when there are any debts try to clear them by the profits gained. Clearing the debts will reduce the pressure.
If you take the stock market, you can buy more stocks if you have more money.
In a savings account if you keep your money you will earn some interest without taking risks.
If you invest in gold and lands you can make more money as their value doesn’t get depreciated.
Some people say an individual can make money for free through online but the reality is we need the internet to do that. How is it possible to get an internet connection without money? And do you think just by getting the internet connection one can make money? No, it’s highly impossible. Who will pay you without working? Is the payer a fool? One has to work hard to make money. On this planet, without effort, it is impossible to make money.
What is the time value of money?
It is a basic principle in finance. Time value of money means the value of a rupee received today is different from the value of a rupee received in the future.
Or
Present money + time = future money
We will give a clear example of this.
Let’s say you are having 1000rs and you have kept that money in the bank as a fixed deposit for 6% interest per year. The matured amount at the end of the tenure will be 1060rs. Here 6% is the time value of money for 1 year.
1000rs + 1 year at an interest rate of 6% = 1060rs.
Here also money is making money. Now the readers might get a doubt that here the individual earned 60rs without putting in any effort.
No that’s not true. From where did you get that 1000rs. Initially, you have struggled to earn that money.
How did the bank pay 60rs? Is the bank a fool to pay you?
No, the bank has invested the money that you had deposited on a business or they might have provided it as a loan to some other individual and that individual might have invested in a business, and after getting the profits that individual has returned the money with interest. Here your money is helping the individual to make money, from that individual the banking is also earning some money and finally, you are also getting a part of that money.
