5 Simple Steps to Catapult Your Money Market Investment
Money market investments are perfectly fine. People just have to look at the brighter side of these kinds of investments. Of all the positive attributes of money market accounts and funds, why should people be focusing on the single negative aspect of this investment type? At this point in time, it is best to remind people of the benefits of sticking with a money market investment and what things they could do while waiting for the interest rates to climb up.
Step # 1: Money market investments require minimum deposits, so maintain your deposit above minimum.
For an institution which insured every centavo of your investment, it is only important to be mindful of the rules and regulations that govern the money market realm. The first rule to remember is about asking for the minimum deposit and maintaining the amount. Unless it is an emergency (and I am not talking about fashion or pigging out types of emergencies), do not let the balance drop below the minimum or else you will be fined. And you wouldn’t want the bank deducting a fine from your meager balance, right?
Step # 2: Lock your investments up in longer, non-withdrawable terms
Unbeknownst to many, money markets may also act like time deposits which allow a person to access his money after an agreed upon time. It is a hard ploy to keep up with especially during times of desperate financial need. Well, of course, this will lead to higher interest rates. But it is still important to consider your current state of finances. This is not the way to go for people who are merely surviving from paycheck to paycheck. Investments with longer lock-up periods are for people who are confident with their financial stability and can survive another 3 to 5 years without tapping the money market account.
If you want to do this but you’re not too assured that your finances are already stable enough, you may opt to keep a portion of the money in different banking terms which can be withdrawn if in case you are in need of money. The remainder of which can be entered into a time deposit-type of account.
Step # 3: Invest in other types of investments
Having a money market account doesn’t mean that that person is already forbidden to engage in other investment opportunities. People who have eared enough from money market investments often pool their resources to invest in other secured investments with higher ROIs. With this kind of strategy, you will be assured that the money market investments will earn a specific interest rate year in, year out. Therefore, you will have a continuous stream of income.
Step # 4: Increase you deposit in your money market account
Despite the slow increase in money market rates, traders are positive that the figures will increase in the upcoming years as the US and other countries worldwide recover from the onslaught of the recent financial crisis. And when it happens, you might want to be at the forefront of those who are earning more from money market accounts that were once snubbed because of the low interest rates.
Step # 5: Save more, earn more
Fine, your investments already bore fruit. Now you look at your current balance and find out that you can already buy a kindle, a Wii, or a cinema-type, flatscreen TV. You may do this if you already secured a concrete retirement plan for yourself 40 years after. If you still do not have a retirement plan, better yet find one and pay for it first before spending your investment returns.
