High-Yield Investing: Make a Million (or More) through Your Investments

High Yield Investments

How can you maximize your investments to make your first (or second, third … tenth?) million bucks? You already know about compound interest and the rest, so this short article will provide you with three actionable strategies for increasing your net worth that you may not have tried.

#1 Dollar-Cost Averaging
Dollar-cost averaging is the practice of buying a fixed dollar amount of a particular investment on a regular basis, regardless of the share’s current price. Over time, dollar-cost averaging results in a lower cost-per-share average on the investment. Dollar-cost averaging is actually a conservative form of investing because it mitigates the risk of investing all your money at once. By getting the most utility from the money you have to invest, you’ll be able to make more money from your investments.

#2 Balance Growth and Income
Sometimes investors make the mistake of focusing all their energy on one aspect of their investments. Maybe they want to have a portfolio that will yield a large amount of income, for example. However, it’s best to strike a balance between the competing desires for money now and money later. Choose a mix of investments: some that have a strong potential for growth over time and some that will yield significant income right now.

#3 Reinvest Dividends
A simple idea, a powerful one: reinvest dividends instead of taking them in as income. The largest barrier to making more on investments is lacking the capital to invest more, so why not reinvest your dividends? This will make it possible to increase your interest income and will give you more funds to contribute to your portfolio.

Neda Jafarzadeh is a staff writer for NerdWallet, a website that helps users make smart (and lucrative) investments.

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1 comment:

  1. Awesome article on wealth building. For a better understanding of stocks read the article on Salient Features of Stocks