Investing Your Freelance Earnings: Where to Invest Them?

There are a lot of places where you could invest your freelancing earnings. Take a look at the listing of stocks featured in the financial pages of any newspaper and you’ll realize that there are a lot of possibilities of increasing your earnings.

The catch is, you have to find the right investment for you.

Here are four investment categories you can choose to use:

Money market funds
These are mutual funds wherein the money invested is put in a very low risk. They are short-term investments that are usually due for ninety days or less.

Bonds are cash advancements that the investors make to government agencies or private companies. The money you invest is paid back to you in a number of years. During the period of investment, you obtain interest payments regularly. A corporate bond usually provides you with higher interest rate but the risk of losing your investment is also higher. A municipal bond would be much preferred.

These are shares of ownership a certain company is selling to the public in order to increase the amount of money used for operating the business. If you own a share, you will be getting more than you have invested, that is, if the business is a success. Among other forms of investment, the stock market has been able to provide individuals with higher return than any other.

Mutual funds
Mutual funds are done by companies which collect you money along with the others and then invest the total amount on your behalf. The risk level is high compared to the other forms.