Personal finance

How to Grow Your Extra Cash

Frugal living and smart money management are the keys to setting aside some extra cash. Now that you have some money put away, you may wonder whether you can grow that extra cash through a careful investment: The answer is yes. You can invest a small amount of money into something that has the potential to increase in value in several ways. Consider the following short- and long-term stock options as well as stock alternatives and other investment products when the time comes to invest.

Stocks and Stock Alternatives

You can invest money in a multitude of ways. Some are better than others in terms of risk, and others are better in terms of what you stand to gain. To understand which investments are best for you, familiarize yourself with a few short- and long-term options and think about whether you want to play it safe or whether you can comfortably risk a higher amount to potentially realize bigger gains.

Short-Term Investments

Short-term investments are ideal in a fluctuating market and are an excellent option to potentially generate a good return over a brief period: a few months at least, but no longer than three years. For example, savings accounts and certificates of deposit (CDs) are good conservative choices that can guarantee a return.

In terms of stock market investments, you’ll find a few short-term options to consider, such as shorting and day trading. Binary trades are another choice. Investors place these types of trades based on a simple yes or no proposition. All of these trades require careful market analysis, a well-defined investment strategy, and a disciplined investor.

Long-Term Investments

Patience is a critical skill as an investor. Expect to sit on these investments for one or several decades. You’ll find many stock options available to generate some gains, and with enough discipline to let your investments mature, CDs and savings accounts are also good choices for those who prefer low-risk, low annual percentage yields for long-term investments. Bonds, exchange-traded funds, and mutual funds are also popular choices.

Other Options and Investment Products

The U.S. Securities and Exchange Commission has a comprehensive list of investment products geared for short- and long-term investors. For example, investing in commodities futures can generate a positive turn if you pay less for a commodity now than what the price turns out to be in the future. Other popular options include corporate bonds, savings bonds, annuities, and hedge funds.

Outside of investment products, some retail items or collectibles will appreciate over time and can be liquidated to generate a positive return. Investing in a new business is another option. Remember that it’s a good practice to invest in a market that you understand, whether you’re buying stock in a quick-service restaurant or backing a new startup company.


Is investing in cryptocurrency a viable option for you to grow your cash? Trading cryptocurrency is a particularly interesting topic, and it’s one that has gained a lot of attention in the media over the last year. Most people have heard of Bitcoin, which is easily the most popular cryptocurrency available. Bitcoin’s price saw an unprecedented growth from roughly $400 at the end of 2015 to its peak of $19,000 at the end of 2017. It’s since seen a downward trend in price and has settled in under $10,000 as of April 2017.

The cryptocurrency market is filled with hundreds of other “coins” besides Bitcoin. The market as a whole is extremely volatile, but opportunistic traders can earn high margins by buying and selling cryptocurrencies. The jury is still out with the long-term value of cryptocurrencies, but if you have the time to research and the disposable income to risk, then you can capitalize on the cryptocurrency market.

Find What Works for You

You’ll find almost countless ways to invest and generate some extra cash. Which one is right for you will depend on your preferred investment type and your investment personality. Take your time as you continue researching ways to live frugally. By investing in areas where you are knowledgeable and comfortable with the risk, you can stay on top of your smart money management.

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