Top 5 Money Tips on How To Earn Interest Or Dividends

…what is the rate on a savings account these days?

…well, right now they range from 0.01% to 0.3%…which is really tiny!

…I recommend the American Express Personal Savings account, which currently has an Annual Percentage Yield of 0.8%…

…let’s say you want to save $1,000…

…your interest per year would be $1,000*0.8% =$8.00…

…per month that comes out to $0.66…

…this is a good place to put your money if you need to have cash ready and available…

…there are various bonds available for purchase with your brockerage firm that will yield between 0.01% APY to around 1% APY…

…they vary in how trustworthy the company is that you are lending your money to…

…in addition, there are different terms for your investment…

…I don’t put money in bonds because I currently have debt and am using the 3rd tip coming up next…

…however, you have no debt, then this is a very popular way to make interest and dividends on your money…

…this is a simple way to make your money work for you…

…it works even more if you are the type to spend before you have the money and currently have credit card debt…

…save up a nice cushion of say $10,000.00 in your American Express Personal Savings account…

…then, instead of using a credit card to make a purchase for a plane ticket or an appliance…

…borrow from your savings and pay yourself back with say 3% interest…

…I borrowed money from my 401K to pay off various loans, and I pay it back at 3%…that interest all goes to me!

…so, for example, say you owe $1,000.00 on a credit card at 12.99%….

…per year you are paying interest to your credit card company of $1,000 * 12.99% = $129.90 a year…

…which equals $10.83 / month that you are paying someone else…

…say instead you borrow the $1,000.00 from your savings, pay off the full balance of the credit card, and then pay yourself back at 3% interest…

…for one year, interest you would pay yourself would be $1,000.00 * 3% = $30/year…and $2.50/month…

…for our example, let’s say you pay off your credit card before the due date and don’t pay any interest, because you paid with your savings…

…let’s say you pay back your savings in 1 month…

…you will have earned $10.83 in saved interest +$2.50 in interest you paid to your savings…

…that’s an earnings of $13.33 on a $1,000.00 loan…

…that is equivalent to an APY or Annual Percentage Yield of 16%!!!

…now that sure beats the interest you are earning in your savings account…

…there are stocks that will pay shareholders (people who own the stock) dividends…

…some examples are Verizon (VZ – 4.39% Dividend Yield), Disney (DIS – 1.04% Dividend Yield), AT&T (T – 5.58% Dividend Yield)…

…I personally like to invest in Real Estate Investment Trusts like Armour Residential REIT (ARR – 15.69% Dividend Yield)…

…when you buy the stock, you must be prepared for it to go up and down in value…

…if you can handle the market movement, then you can make a lot more money with dividends from stocks than from savings…

…remember to hold onto your stocks when the price is low…don’t ever panic and sell unless you know for a fact that the company is closing down…

…I also invested into a blogging home based business…

…this gave me a lot of money in tax savings and now also brings in monthly income…

…though my results aren’t typical, I’ve made up to $600.00 / month in recurring monthly income…(see income disclaimer at http://WorkWithMey.com/income)

…in fact, you are on one of the blogs that bring in this income for me…

…and I’m writing about what I love!