what is the best way to make my money grow?

Question

im only a teen, but the whole putting my money in a bank just to get 20 cents interest is not very exciting

are there better ways for my money to grow?

Answer 1

As a teen you need to determine your liquidity needs and your risk level. That is, how quickly do you want access to your money and how much tolerance do you have for losing your money?
High liquidity and low risk: Putting your money in a savings account is in fact a very slow way to earn interest, but you have high liquidity and very low risk-if you want to take your money and spend it today, you can get it today, and you're guaranteed to be able to take out at least as much money as you put into the account.
Less liquidity and more risk: Putting your money into a mutual fund allows you to eliminate a lot of "firm specific risk (simply stated, you get less risk than investing in one stock) and the potential to earn a much higher rate on your money than you'd earn at a bank. However, you have to wait a little longer to get your money, and also, you have to be able to tolerate the possiblity that your investment will reduce in value.
Less liquidity and even more risk: You can pick a stock or two that you like and speculate that it will gain value. The key to making a lot of money out of a little is that you need to buy more shares of a lower value stock. (i.e. if you have $100 dollars, and you can buy 100 shares of a $1/share stock that moves $1share, then you earned $100. If you buy 1 share of a $100/share stock, and it moves $1 or even $10 a share, you only make $1 or $10. OBVIOUSLY its not that easy because the lower the price of the stock, generally, the less investor confidence and the higher (and it's MUCH higher) possibility that you'll lose a great deal or all of your money. You may try to find undervalued stocks at www.valuepro.net.
In conclusion, this was just my strategy when i was a teen--split your bankroll up and do different things with different percentages. so if you have $1000, maybe put $200 in the bank for your short term needs (gas money, clothes), put 700 into mutual funds, and then spend $100 and play with low cost stocks that can get you a lot of money, realizing that the $100 may be lost forever. Good luck.

Answer 2

Start investing in yourself.
Buy a book: The Intelligent Investor by Benjamin Graham is a great starting point to learn the time-tested Principles of acquiring Wealth....and keep reading books to educate yourself. Then you will know what to do when the time comes.
Patience is important...but learn the Principle of Compounding. :o)

Answer 3

Try mutual funds. You can pick the level of risk. GOOD FOR YOU FOR STARTING THIS SO EARLY! You have time on your side to just let your money sit and grow.

Check out fidelity.com, ing.com and other investing sites.

Answer 4

You need money to make money....save then talk to a professional like "Morgan and Stanely"for large or small investments.

Answer 5

Invest.