Many people strive to earn enough money to comfortably cover their expenses. Often, when individuals receive cash, their immediate instinct is to deposit it into a traditional bank account. However, this approach may not always be the most effective way to grow wealth. What many don’t realize is that money can actually work for you, generating significant returns when invested in the right opportunities.
This concept is known as “earning money from money.” By making strategic investments, individuals have the potential to earn substantial profits—sometimes in the thousands or even lakhs per month. In this post, we will explore various ways to leverage your money and maximize its earning potential.
Let’s begin by taking a closer look at the different strategies available to help you grow your wealth through smart financial decisions.
| Ways to make money from money | How much return will you get (annual) |
|---|---|
| Make money from money by investing in the stock market | 10 to 30 % |
| Earn money from money by doing FD | 6 to 9% |
| Earn money by buying and selling land | 10 to 15% |
| Earn money by doing business | There are no limits, |
| Earn money by investing in Mutual Funds | 15 to 20% |
| Earn money by giving loans | 7 to 12% |
Now, let’s take a closer look at each of the methods for earning money that we’ve mentioned above, one by one.
Before we dive into the details, however, it’s important to note that each investment opportunity comes with its own set of risks and rewards. Understanding these factors is crucial to making informed decisions that align with your financial goals. With that in mind, let’s explore these strategies in more depth.
How to earn money from money
1. Earning Money from Money by Investing in the Stock Market
In today’s world, one of the most popular ways to grow your wealth is by investing in the stock market. The stock market offers an opportunity to buy shares of well-established companies, allowing you to become a partial owner. As the company grows and its value increases, so does the value of your shares.
Investing in the stock market can be an excellent way to earn money from your savings. I understand that the concept might seem a bit confusing at first, so let me break it down with an example to help clarify how this works.
Example: Earning Money by Investing in the Stock Market
Let’s say you decide to invest in shares of Tata Company, which is currently priced at ₹626 per share. If you buy 10 shares, your total investment will be:
₹626 * 10 = ₹6260
Now, over 1 or 2 years, if the company performs well and its stock price increases to ₹1200 per share, your 10 shares would now be worth:
₹1200 * 10 = ₹12,000
So, you would have made a profit of ₹12,000 – ₹6260 = ₹5730. This is a simple example, but as you can see, with larger investments, the potential returns can be significant.
However, it’s important to remember that the stock market can be volatile. While you can earn substantial profits when the share price rises, you can also face losses if the share price drops. Therefore, before investing in any stock, you should research the company and understand its potential for growth.
Important Note: Always do thorough research or consult with a financial advisor before investing. The stock market offers great opportunities, but it’s essential to make informed decisions to minimize risk.
Suppose you are new to the stock market. In that case, I highly recommend watching educational videos from experts such as Dhruv Rathee on YouTube to get a better understanding of how the market works.
With this basic overview, I hope you now have a clearer idea of how investing in the stock market can help you earn money from your savings.
2. Earning Money from Money through Fixed Deposits (FD)
Another reliable way to grow your wealth is by depositing your money in a Fixed Deposit (FD) account. Before we dive into the details, let me ask you: where have you been keeping your money? Most likely, many of you have it in a savings account, which typically offers an interest rate of around 3%. While that’s better than nothing, it’s still far less than what you could earn with an FD.
When you invest your money in an FD, you can earn interest rates ranging from 7% to 10% annually, which is much more lucrative compared to a savings account. For example, if you have ₹8 lakh and invest it in an FD with a 7% interest rate, you’ll earn ₹56,000 annually.
While the returns from an FD might not match the potential high profits of the stock market, they come with a major advantage: security. Unlike the stock market, where there is a risk of losing money, FDs offer guaranteed returns, making it a safer option for those who prefer stability.
Which Bank Offers the Best Interest Rates for FDs?
One of the highest interest rates currently offered on Fixed Deposits is by Suryoday Small Finance Bank, which provides an interest rate of 9%. However, to earn this rate, you would need to lock your money in the FD for about 2.5 years. If you opt for a shorter tenure, the interest rate will be slightly lower.
Before making your decision, consider how long you want to keep your money in the FD. Once you know the duration, research which banks offer the best FD rates for that specific term.
To help you further, we’ve provided a guide video below that explains which banks offer the best Fixed Deposit rates today.
Investing in FDs is a simple and secure way to earn money from your savings. It may not bring the high returns of the stock market, but it’s a safe and stable option for those looking to grow their money without taking on significant risk.
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3. Earning Money from Money by Buying and Selling Land
If you have between ₹10 lakh to ₹20 lakh, you can consider investing in land. Just as you can earn money by investing in the stock market, buying and selling land is another way to grow your wealth.
Over the past few years, land prices have skyrocketed. For example, a plot of land that was once available for ₹5000 per square yard is now priced at ₹50,000 per square yard. This increase is due to the growing demand for urban land as more people settle in cities.
You might have noticed areas on the outskirts of a city where there were no developments a few years ago, but now they have become bustling neighborhoods. If you have the capital, you can purchase land in such areas and sell it later at a higher price.
Example: How Much Profit Can You Make from Land Investments?
Let’s look at a real-life example. A friend of mine bought 50 square yards of land in Greater Noida for ₹14,000 per yard. Just four months later, the same land is now being valued at ₹20,000 per yard.
So, my friend initially spent ₹8 lakh (₹14,000 * 50 yards), but today the value of that land is ₹10 lakh (₹20,000 * 50 yards), giving him a profit of ₹2 lakh in just 4 months.
As you can see, buying and selling land can be a profitable investment if you make the right choices and hold on to the land until its value appreciates.
4. Earning Money by Starting a Business
If you’re a person who’s willing to take risks, starting a business can be one of the best ways to earn money from your savings. Although many people in India work 9-to-5 jobs, a fear of failure often prevents them from starting their own businesses—even when they have the necessary funds.
If this sounds like you, don’t be afraid to leap. Many low-budget business opportunities can be started with a small amount of capital. If you’re unsure where to start, there are plenty of small business ideas that require minimal investment.
If you’re interested in learning more about these types of businesses, check out our post on Best Business Ideas with Less Money.
5. Earning Money by Investing in Mutual Funds
Mutual funds are another great way to earn money from your savings. When you invest in a mutual fund, your money is pooled together with that of other investors and managed by an Asset Management Company (AMC). These companies invest your money in various assets like stocks, bonds, or real estate.
The company takes a small percentage (usually 1-2%) of the profits as a fee, and the rest is distributed back to the investors. If you’re looking to grow your wealth with less risk than the stock market, mutual funds can be an excellent choice.
If you’d like to understand how mutual funds work in more detail, I recommend watching the guide video linked below.
6. Earning Money by Giving Loans
In today’s world, many people who have money are earning by lending it to others. Some individuals offer loans to others at interest rates of around 9-10%. If you have surplus funds and want to earn a steady income, you can lend money to others.
This can be done either offline or online. In the online world, this is known as Peer-to-Peer (P2P) Lending. By joining a P2P lending platform, you can lend your money to borrowers who need loans. The platform will manage the loan process, and once the borrower repays the loan with interest, a portion of that interest will be paid to you, while the platform keeps a small percentage for itself.
The best part is that the platform takes on the responsibility of ensuring the loan is repaid, so you don’t have to worry about defaults.
If you’d like to understand P2P lending better, I’ve included a helpful video guide below.
By considering these different methods, you can make your money work for you, whether it’s through real estate, business ventures, mutual funds, or lending. Each of these options offers unique opportunities to grow your wealth while managing your risk.
What Is The Best Way To Earn Money From Money?
In my view, the stock market offers one of the best opportunities to earn money from your investments. Once you fully understand how the stock market works, you’ll realize that it holds immense potential for wealth creation.
Take Warren Buffett, for example. As the 5th richest person in the world, his success is a testament to the power of the stock market. His incredible wealth was built by making wise investments and leveraging the growth of companies over time. If you understand the stock market well, there’s no reason why you can’t follow a similar path to financial success.
Guide Video About Making Money From Money
Frequently Asked Questions
What is the best way to earn money from money?
The best way to earn money from your savings depends on your risk tolerance and financial goals. Some popular methods include investing in the stock market, starting a business, investing in fixed deposits (FDs), or purchasing real estate. Each option has its own benefits and risks, so it’s important to choose based on what aligns best with your objectives.
Is the stock market a safe way to earn money from money?
While the stock market has the potential for high returns, it also comes with risk. Stock prices can fluctuate due to various factors such as economic conditions or company performance. However, with thorough research, patience, and a long-term investment strategy, you can mitigate risks and earn substantial returns.
How can I make money with fixed deposits (FDs)?
Fixed deposits are a safer way to earn interest on your savings. By depositing your money in an FD, you can earn an annual interest rate ranging from 7% to 10%. Although the returns are not as high as other investment options, FDs provide guaranteed returns with little to no risk, making them ideal for conservative investors.
Can I really make money by buying and selling land?
Yes, buying and selling land can be profitable, especially in areas where real estate is appreciating rapidly. However, it requires careful research and timing. Buying land at a lower price and selling it when demand increases can lead to significant profits. But remember, land investments may require a larger initial capital outlay and long-term patience to see substantial returns.
How can I start a business with limited capital?
Starting a business doesn’t always require a significant investment. There are many low-budget business ideas that you can explore, such as online services, freelancing, or small retail businesses. By leveraging your skills and creativity, you can start a profitable business without a substantial initial investment.
Are mutual funds a good way to earn money from money?
Mutual funds are an excellent option if you’re looking to earn money from your investments with relatively lower risk compared to the stock market. By investing in a mutual fund, your money is managed by professionals who invest in a diversified portfolio of stocks, bonds, or other assets. The returns are shared with investors after deducting management fees. They are a good choice for those who prefer a more hands-off investment approach.
How does P2P lending work, and can I earn money from it?
Peer-to-peer (P2P) lending is a way to lend money to individuals or businesses through online platforms. You earn money by charging interest on the loans you provide. The platform usually takes a small fee, and the borrower repays the loan with interest over time. This method can provide a steady income, but it comes with the risk of defaults, so it’s essential to choose reliable lending platforms and understand the risks involved.
Is it necessary to have a lot of money to start investing?
No, you don’t need a large amount of money to start investing. Many investment options, including stocks, mutual funds, and even real estate, allow you to start with a small capital. The key is to start early and invest consistently. Even small, regular investments can grow significantly over time through the power of compounding.
Conclusion
Earning money from money is all about making strategic, informed decisions that allow your wealth to grow over time. Whether you’re looking to invest in the stock market, explore real estate, start a business, or earn interest through fixed deposits, there are various ways to leverage your money to generate passive income. Each method comes with its own set of risks and rewards, so it’s essential to assess your financial goals, risk tolerance, and time horizon before choosing an investment strategy.
The key to success in growing your wealth lies in consistency, patience, and continuous learning. No matter which path you choose, it’s essential to start early, diversify your investments, and regularly review your portfolio. The more you understand about the different opportunities available, the better equipped you’ll be to make your money work for you.
