What's the support that money makes money?

[Starmix]

The idea that money makes money is a fundamental concept in financé, referring to the ability of money to generate more money through various methods.

These are the following methods:

• Investing;
• Compound interest;
• Business ventures;
• Passive income;
• inflation hedge, and
• Time value of money.

When you invest money in assets like stocks, bonds, real estate, or businesses, your money has the potential to grow over time through interest, dividends, capital gains, or profits.

About compound interest, this is one of the most powerful ways money can make money. When you earn interest on your initial investment, you also earn interest on the accumulated interest from previous periods – so your money grows exponentially over time.

Using money to start to invest in a business can create profits that exceed your original investment. Money put into rental properties, dividend-paying stocks, or peer-to-peer lending can generate income regularly without active work.

Also, investments like real estate or stocks often outpace inflation, helping your money remain and grow in purchasing power rather than losing value if kept idle. Money available now is worth more than the same amount in the future because of its potential earning capacity.



Lastly, money can grow by being put to productive use, earning returns, and utilizing financial principles like compound interest.

 

[Springtime]

In fact, it is only through money making money that you can grow your wealth. If you just put your money in a savings account, your money will not grow. You have to invest or put in money in a fixed deposit account which offers higher interest rate.

 

[eLdavis]

At the end of the day, you need money to make money. You need to invest money to be able to get returns. To advertise or promote your business, you need to pump in money as well.

 

[Starmix]

Whatever we do that requires capital, the return is money. Money is a powerful instrument that could provide us with exponential gains over time if do business or investment consistently and honestly.