Four Stages of the Business Cycle

There are four stages of the business cycle: expansion, peak, contraction and trough. We’ll look at these and other cycles and draw some conclusions about the economy and how you can plan for the future.

Experts Have Discovered That Economic Events Happen in Cycles. The Seasons, the Planets and Human Life Itself Are Cyclical

Before we get to the details of the four stages of the business cycle, let’s discuss more about economic catastrophe. Unfortunately, the American Great Depression and the COVID-19 shutdown of 2020 were catastrophic events. Yet, some very intelligent researchers have determined that much of what we experience in our lives revolves around cycles.

The sun and the moon follow a cyclical pattern that is predictable. In addition, the earth’s movement through the universe and its relationship to other stars is part of a greater cycle. But here on earth, there are many more cycles.

The life of a human being is part of a cycle. You are born, you become a youth, then middle aged, followed by elderly life and death. Our season are cyclical: Fall, Winter, Spring and Summer. Researchers have discovered that our economy is cyclical as well. Oddly enough, the four stages of the business cycle are closely related.

According to Investopedia, the four stages of the business cycle are as follows:

“The four stages of the economic cycle are also referred to as the business cycle. These four stages are expansion, peak, contraction, and trough.” -Investopedia

The Four Stages of the Business Cycle: Expansion, Peak, Contraction and Trough

Expansion occurs when the economy is growing. Prices begin increasing, more people are working. Businesses grow and make more money, hire more workers and pay better salaries. The workers tend to spend more money, buying cars and houses, passing money along through the economy. Most participants in the economy benefit and see more money in their bank account.

The peak of the business cycle is the highest point. It occurs when expansion reaches its maximum. For example, employment in the economy is considered full, prices increases are beginning to look like inflation. Many people will have borrowed great deals of money for bigger houses or more things. The stock market is usually at an all-time high.

During a contraction economic growth begins to slow down. Inflation (price increases) begin to slow down as well. In addition, unemployment may begin to increase and more people find themselves out of the workforce. The stock market may level off or even begin a correction or retracement. New housing starts may decrease during this time period.

The trough is the low point and may also be called a “recession” or a “depression.” People begin to worry about personal finances. Unemployment is higher, borrowing money is more difficult and people struggle to make ends meet. The stock market may be in a bear market trend either going down or flat. Jobs are scarcer and the real estate market is tight.

Economist Ray Dalio and the Economic Machine

Ray Dalio, an economics expert from Bridgewater Associates, has created some really intelligent free videos on understanding the 4 stages of the business cycle. He also is the author of the book, “Principles.” Dalio is really good at simplifying economic ideas and helping you understand why things happen as the do.

How the Economic Machine Works by Ray Dalio

Why You Need to Know About the Four Stages of the Business Cycle

During the up Cycle the Economy Flourishes; During the Down Cycle the Economy Suffers

It’s important to understand the basic concept of economic cycles because cycles go up and down. The economy bounces back and forth between growth and recession. In down cycles, money is tight, banks are reluctant to lend money, economic growth slows down and people don’t spend as much because they have less money. However, in up cycles, people spend more, banks lend more money, the economy grows and unemployment is low.

There are many investments in the economy that are affected by the economic cycles, such as the stock market, real estate prices and even commodities prices like gold and silver. As a result, financial planners and investors must be proactive in planning for changes during the four stages of the business cycle.

The American Economy is in a Down Cycle in 2020

In 2020, the economy is passing through a down cycle. We are probably somewhere between contraction and trough in the four stages of the business cycle. As a result, unemployment is high, it is becoming more difficult to borrow money and yet the stock market is at an all-time high. Money managers have to make tough decisions about re-balancing portfolios with stocks, bonds, precious metals and even cryptocurrencies.

stages of the business cycle

What You Can Do to Thrive and Protect Yourself

The Secret to Winning in the Four Stages of the Business Cycle: Budget, Save Money & Invest

When life is cyclical, it simply means things go up and then they go back down. The pattern repeats itself in a cycle that goes on forever. Moreover, in the natural world, animals are aware of the cycle of the seasons. For example, squirrels have the natural instinct to bury acorns during the summer and build their nests to prepare for the bitter cold of winter.

In many ways, the four stages of the business cycle operate much like that in the animal kingdom. Although humans no longer depend on instinct to survive, we can still use our higher brain function to make decisions. If we know that the economic cycle goes up and down, then sometimes we will have more money and other times we may have less money. Following this logic, it makes sense for us to save money during the times that we have more money. When we learn ways to save money on a tight budget, we are better prepared to weather the storm of bitter economic times.

Write Down Your Goals

If you want to be retired, living on a beach in Costa Rica in 20 years, then you need to write that down as part of your goals. We recommend creating a notebook, journal or even a spreadsheet where you list exactly what you have planned for the future. This serves two purposes. Writing down your goals makes what you want explicitly clear. It gives you a starting point and also provides you with the details that you will need to determine how you will reach your goals.

The second purpose of planning out your financial goals on paper (or electronically) is that you are signaling to the universe what you want. History has proven that the psychology of desire and intention is a powerful tool in accomplishing goals. Understanding the four stages of the business cycle can help you achieve your financial goals as well.

Review Your Goals Regularly

Once you’ve written down what you plan to accomplish through your goals, you should return to the goals frequently to review them. Some people even find it helpful to place a copy of the written goals in a location near them where they see the goals daily, like on your bathroom mirror or near your workspace. It can also be helpful to visualize your goals through imagery. Is one of your goals to own a beach house? Place a picture of the beach house that you want on your wall. Again, the power of intention is great and tends to help you focus your energy on exactly what you want.

Create a Budget

Now that you have established your goals, it’s time to create a budget. Budgeting requires a great deal of self-discipline, so if you don’t follow your budget, then it can wreck your plans! When you create a budget, start by writing down in detail what your expenses are each month.

Spreadsheets are great for budgeting, but not required. There are also budgeting apps to choose from that can be helpful. For now, you need to know where you spend your money. Provide as much detail as possible when listing your expenses. You may find it helpful to review past bank statements and receipts.

Once you have an idea of where you spend your money each month, it’s time to take a hard look at your budget and cut some expenses. Many people find making cuts to spending a difficult task. But making cuts now will help you reach your financial goals quicker.

Living Below Your Means

After cutting your expenses down to the bear minimum, you should be living below your means (hopefully). Unfortunately, living below your means is a philosophy that most people don’t follow these days. Living below your means requires that you spend less than what you make. For example, if your take home pay is $1,500 per month, then living below your means is only spending $1,000 per month.

The extra money that you have from living below your means will serve two purposes. At first the extra money will be used to pay down debts quickly. Getting ahead requires that all debt be paid off first. Secondly, after the debt has been paid off, you will then use the positive cash flow to fund your emergency fund, savings and investments. Each of these is part of your net worth and the buffer between you and poverty. The more you can grow your savings and investment, the simpler and easier life gets.

Pay Off All Debts

Before you can start saving money, you must pay off all debts. Now that you’ve established your budget, cut personal spending to the bare minimum. You will take extra money that you have leftover in your budget and use it to pay down debts. Create a list or accounting of your debts, the corresponding balances and interest rates that you maintain. Use this information to help you keep track of your progress as you pay down debts.

If you are young and just starting out, hopefully your debts are minimal. Having minimal or no debt when you begin your journey toward wealth creation is a huge advantage. Paying off debt can take years and a great deal of sacrifice. So, if you have little or no debt, congratulations! For the rest of us, it’s time to get to work paying off debt.  

The Shocking Truth About Saving Money

According to a December 2019 article by GoBankingRates, approximately 70% of Americans have less than $1,000 in savings!

This is a shocking statistic that shows how access to credit cards and lending have dominated our society. Unfortunately, Americans have adopted the idea that borrowing money for most things is normal. Yet, just a few generations ago in the early 20th century, people learned the hard way during the Great Depression that borrowing can lead to financial ruin. Having no savings puts you in a dangerous financial place.

Make Saving a Habit

Saving is a habit that can be learned over time and simply requires discipline. Become determined to reach your financial goals. Your personal determination to win at the money game will help you develop the discipline to save.

In addition, develop good habits of saving money. In the classic personal finance book, “The Richest Man in Babylon” by George Clason, the author implores the reader to set aside at least 10% of your earnings. This is a great rule of thumb for saving and investing because removing only a fraction of your income each month will likely not even be noticed or missed. Yet, this small amount of money is the seed needed to grow wealth.

Create an Emergency Fund

The first thing to do when you have paid off debt is to start saving for an emergency. Many people think that saving for an emergency is not necessary, until life proves them wrong and an unexpected event happens. Unfortunately, we all have emergencies during life: job loss, medical issues, natural disasters, home repairs, car problems, etc. Life is expensive and it pays to be prepared.

At a minimum, you want to have at least $1,000 in your emergency fund. In reality, your emergency fund should cover 3-6 months of expenses. For most people this number should probably be between $5,000 – $20,000. Keep in mind that in the worst case scenario you want to be able to pay all your bills and eat for 3-6 months, in the event that you lose your job.

Invest 10-15% of Income

Once you’ve fully funded your emergency fund, you can start investing. And if you have made it this far, then congratulations! You are ahead of the pack and well on your way to wealth building.

As stated previously, we recommend that you invest 10-15% of your income monthly. The earlier that you get started saving and investing, the better off you will be in the long run. In fact, the most powerful tool that will be working for you during investing is compounding interest, and it works like magic. How do you turn $1,000 into $62,000? The answer may be simpler than you think.

Wrap Up: the Four Stages of the Business Cycle

As you can see, understanding the four stages of the business cycle is critical in understanding how investing works. Knowing the parts of the business cycle makes investing and managing money clearer and reduces the chances that you lose money over time.

Read more:

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10 Things to Know Before Starting a Budget

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Why Saving Money is Important

The Best Budget App

US Dollar History: How the Dollar Became the World Reserve Currency

How Much Savings You Should Have at 40

Ways to Save Money on a Tight Budget

Real Estate Market Predictions

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It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, to help you make the best choice for you.


Cryptocurrency Investment Strategies

Many cryptocurrencies are rising higher and higher. Bitcoin is near its all-time high of $60,000 and many experts predict it will soar much higher in price. Although we can’t advise you on what you should invest in, we will share some cryptocurrency investment strategies that others have used. In addition, we will discuss what cryptocurrency is and some future predictions.

Fifty years ago, investing was simple: stocks, bonds and real estate. However, today the investment process has become much more complicated. Moreover, there are an infinite number of investment choices that can be difficult to understand. One new investment is Bitcoin and cryptocurrencies.

It seems clear that the future is bright for Bitcoin and Ethereum, as well as several other cryptocurrencies. We will discuss why these cryptocurrencies deserve serious consideration as a part of your cryptocurrency investment strategies. In addition, we will also briefly discuss some other cryptocurrencies worth noting.

Cryptocurrency Investment Strategies Summary

In some ways, investing in cryptocurrencies is like investing in stocks. Retail stock investors simply open a brokerage account like E-Trade or Robinhood, link their bank account and begin buying shares. Your cryptocurrency investment strategies will be similar. You can open a trading account at a cryptocurrency on-ramp brokerage firm like Coinbase or Gemini, link your bank account, and then begin purchasing cryptocurrency.

In general, cryptocurrency investment strategies include investing in the top 10 coins, such as bitcoin and Ethereum. In addition, investors may choose to make a play to capture gains through more risky altcoins that are not well known yet. Finally, traders may also invest in stable coins to offset some risk in the portfolio.

Another angle for cryptocurrency investment strategies is to consider passive income in crypto. Many exchanges and brokers, such as BlockFi, now offer investors the option to earn passive income on their investment by sampling holding cryptocurrency in an online account. For example, BlockFi offers up to 8% returns on some cryptos, which is quite significant.  This is a simple portion of some traders’ cryptocurrency investment strategies that is low risk and earns significant returns.

What is Cryptocurrency?

Cryptocurrency is a digital asset. Payments occur between individuals on the internet. In addition, the best cryptocurrency uses cryptography to secure transactions on a network. Block chain technology is part of what makes the network secure. Miners use powerful computers to solve advanced equations in order to earn Bitcoin or other cryptocurrencies. Finally, mining makes the distributed ledger network secure. In addition, it ensures that transactions are complete. As a result, no one can cheat the system.

What is Block Chain?

The block chain stores data on a public database. The blocks of information include transaction data, participant data and distinguishing data. Moreover, each block of data stores thousands of transactions under cryptographic lock and key. A network of computers operates the blockchain. They make the network run and keep it secure by solving algorithmic hashes. The network computers earn cryptocurrency for their work. Finally, the bitcoin block chain technology uses a distributed ledger. Bitcoin’s network security hinges on the distributed ledger that the network participates in.

Bitcoin: A Peer-to-Peer Electronic Payment System Created by Satoshi Nakamoto

Bitcoin is an open-source, block chain-based technology that was designed as a peer-to-peer payment system. It is designed to be a decentralized electronic payment method that can be conducted semi-anonymously among individuals. Bitcoin is digital cash. Many consider Bitcoin to be one of the best cryptocurrencies to invest in.

It uses block chain technology to maintain its function. For users to send and receive bitcoin, the block chain depends on miners. Computers are used by miners to complete complex calculations which build blocks on the block chain. As a reward, the miners receive Bitcoin as payment when each block is completed.

Bitcoin was introduced to the world in 2009 by Satoshi Nakamoto in a 9-page white paper entitled, “Bitcoin: A Peer-to-Peer Electronic Cash System.” Bitcoin was the first cryptocurrency to experience widespread use and adoption. However, its use case has evolved over the years from a peer-to-peer payment method to a store of value model. Many Bitcoin users hold bitcoin much like you would hold silver or gold in an investment portfolio.

Reasons Why Bitcoin Is Included in Cryptocurrency Investment Strategies

  • Exponential growth and adoption since 2009
  • $240 Billion market capitalization
  • Proven electronic payment method
  • A store of value much like gold
  • Deflationary money – only 21 million Bitcoins
  • Replaces the US Dollar as World Reserve Currency
  • Reasonable privacy
  • Independence from banks and governments
  • Border-less payment system
  • Low fees
  • Meets all the requirements of the definition of money

Ethereum: A Block Chain Project That Uses Smart Contracts to Power Other Projects

Ethereum is another powerful cryptocurrency that should be included in any trader’s cryptocurrency investment strategies. It is an open-source, decentralized block chain project. Second, Ethereum is a smart contracts platform. Additionally, it provides open access to money, via the Ether cryptocurrency coin (ETH), and technology, exemplified by the thousands of applications that are operating on the Ethereum network. The ETH coin of Ethereum is second only to bitcoin in market capitalization.

Like Bitcoin, Ethereum is a Proof of Work consensus system. This means that powerful computers all over the world are continuously solving complexed equations in order to build blocks on the Ethereum block chain. Whichever machine or miner solves the problem quickest, completes the block and receives a reward as payment: ETH coin.

Although Ethereum shares some features with Bitcoin, such as being able to make peer-to-peer transactions, they serve different purposes and audiences. Bitcoin was the original decentralized payment system. As a result, banks do not manage payments. Ethereum’s primary purpose is to serve as the core block chain on which newer projects operate.

Ethereum uses a payment system for ETH. In addition, it implements smart contracts which allows entirely new projects to run on top of the Ethereum block chain. For example, in November 2017, the decentralized application “CryptoKitties” was launched. It is a digital collecting and trading app of virtual felines that works on Ethereum. As a result, Ethereum may be one of the best cryptocurrencies to invest in.

Reasons Why Ethereum May Be One of the Best Cryptocurrencies to Invest in

  • Industry leader in smart contracts
  • Widespread use and adoption
  • $200 Billion market capitalization
  • Home of block chain decentralized applications (dapps)
  • Well established decentralized payment network
  • Serves as the block chain base for hundreds of projects
  • Independence from Banks
  • Borderless Payments
  • Low Fees

Other Cryptocurrencies to Consider

Here are some other cryptocurrencies that are worth looking at more deeply. Although Bitcoin is the most dominant and most secure cryptocurrency, there are many other cryptocurrencies that have strong security and strong use case value. A cryptocurrency investment portfolio may include other cryptocurrencies.

Cardano (ADA)

Named after Gerolamo Cardano, a 16th century Italian polymath, the Cardano project began in 2015. It is an open-source software project. Moreover, it innovates the design of cryptocurrency. Cardano has a long-term plan called the Road Map. Cardano’s most notorious feature is its implementation of peer-reviewed research. Research and peer review are a part of project development. It has a $35 Billion market capitalization.

A team of academics, researchers and developers managed Cardano. They focus on solving cryptocurrency problems. Moreover, Cardano doesn’t focus on one use case scenario for cryptocurrency; instead, it appears to be tacking many problems at once, such as currency, proof of stake, smart contracts, scalability, security and even scripting. In addition, Cardano uses the delegated proof-of-stake method to maintain the network functionality. This is different because it is more efficient for electricity consumption. Cardano is definitely one to watch if you are looking for one of the best cryptocurrencies to invest in.

Monero (XMR)

Created in 2014 from a fork in the Bitcoin block chain, Monero is a privacy coin. Monero uses what it calls an “obfuscated public ledger” which makes transactions of Monero private. Moreover, Monero is a tested privacy payment method. The project has longevity and a working record of privacy.

Monero gets a bad reputation at times. For example, it has been used on the dark web as an illegal payment method. However, it should be noted that paper currency such as the US Dollar can also be used for illegal purposes. Privacy for legal transactions is an important aspect for money and Monero is the foremost privacy cryptocurrency on the web. Monero is definitely one of the best cryptocurrencies to invest in for those who love privacy.


XRP is a currency that operates on a digital payment platform known as RippleNet. The company known as Ripple operates XRP. The currency is not technically a cryptocurrency and doesn’t operate on a block chain. Instead, XRP is a centralized, distributed ledger technology. XRP is an engineered payment system. It is a new competitor to the SWIFT payment system. The SWIFT system is used in international banking.

Chainlink (LINK)

Developed in 2017, Chainlink is a decentralized network that connects smart contracts with real world data. Furthermore, the Chainlink decentralized oracle network is operated by node operators. In addition, operators that maintain nodes are paid LINK cryptocurrency. The nodes connect the system like links in a chain. Chainlink runs on the Ethereum network and plays a critical role in execution of smart contracts. It is one of the new rising stars of the cryptocurrency revolution and one of the best cryptocurrencies to invest in.

Polkadot (DOT)

Another new rising star in the cryptocurrency space is Polkadot. The Web3 Foundation created Polkadot. Its primary function is to facilitate the operation of block chains together. The DOT coin functions in three ways: staking, bonding and networking. Finally, Polkadot contains special tools like specialization, scale and inoperability which act as catalysts between block chains.

Binance Coin (BNB)

Binance coin is a utility token that is one of the highest market cap coins in the industry. It is used to pay for Binance exchange fees. In addition, it also helps power the Binance decentralized exchange (DEX). The Binance coin is a deflationary coin. It is burned frequently by Binance. Part of the reason that BNB is so popular and successful is due the success of the Binance exchange. Binance is definitely a strong consideration when looking for one of the best cryptocurrencies to invest in.

Cryptocurrency Investment Strategies in 2021

Recently, Bitcoin has traded as high as 60,000 per Bitcoin. It peaked in price around approximately $20,000/Bitcoin in late 2017. Bitcoin has been on an upward trajectory lately and has neared its all-time high on several occasions. There are many analysts who believe it could go much higher. But even more importantly, Bitcoin and other cryptocurrency may break the banking chains that imprison us today. And it’s no longer a conspiracy theory to discuss cryptocurrency. Respected investors are taking it seriously like never before and many believe that Bitcoin should be a serious part of anyone’s cryptocurrency investment strategies.

Future Predictions of Bitcoin and Ethereum Prices

Reputable Investors Foresee Exponential Growth in Bitcoin and Ethereum Markets

It seems clear that in 2021, Bitcoin and Ethereum will begin the next phase of expansion and adoption. Many investors have included cryptocurrency investment strategies in their portfolio.

As a result, the price of both cryptocurrencies will likely go much, much higher. These are certainly important when determining the best cryptocurrencies to invest in.

Anthony Pompliano and Max Keiser, two well-known investors in the Bitcoin space believe that Bitcoin price will exceed $100,000 in the next few years. Other investors like Mike Novogratz and Chamath Palihapitiya believe Bitcoin price is destined to go even higher to levels like $400,000 and $1,000,000, respectively.

As for Ethereum, investors are optimistic about its future price as well. Because Ethereum’s market capitalization is only $40 Billion, there is much room for growth. Continual adoption of Ethereum by institutional investors could easily lead to a $200 Billion market capitalization, equating to a $1,500 ETH price. Investors such as Nigel Green and Blockfyre co-founder Simon Dedic predicted much higher prices ($2,500 – $9,000) for Ethereum in the future.

It should be noted that several of the investors mentioned are worth Billions cumulatively and have a clear track record of investing in markets. As a result, their predictions should be seriously considered.

Bitcoin Continues to Grow

There are a couple of things to understand about Bitcoin growth. First, Bitcoin is growing in popularity and use worldwide. Users are adopting Bitcoin as a store of value like gold and using it as a payment method in places where banks don’t exist. Second, Bitcoin is growing in price.

When users began mining Bitcoin on laptops in 2009, it had little value. Yet today 1 Bitcoin can be exchanged for $12,000! Around 2020, billions of Dollars of institutional money began to flow into cryptocurrency investment.

Examples of Institutional Money Investments in Bitcoin:

The list of investors and cryptocurrency investment continues to grow each day. When considering some of the best cryptocurrencies to invest in, look at what professionals invest in as well.

Bitcoin Exchanges and More Information

Hopefully this article has given you some ideas about the best cryptocurrencies to invest in. When making investing decisions it is important to do your own research and determine for yourself what is a good investment.

In addition, there are many exchanges that can be used to purchase cryptocurrency. Binance, Gemini, Kraken, Coinbase and so many more. Please do your research if you decide to invest. There are many scams in the crypto industry that are searching for an easy mark. If you want to learn more about Bitcoin and cryptocurrency, there are more articles by Piggy Bank Coins below.

Cryptocurrency Investment Strategies Wrap Up

Clearly,cryptocurrency investment strategies are a part of many wise trader’s portfolios. Cryptocurrencies are no longer a taboo subject among investors. As a result, many traders that have not formulated cryptocurrency investment strategies may find themselves missing out on big gains.

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It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, in order to help you make the best choice for you.


Make Your Money Work For You

In this article we provide tips and hacks on how to make your money work for you. Have you considered that it might be more satisfying to make your money work for you, instead of you working for money? Most people don’t think about this concept, but making your money work for you is a secret of millionaires and billionaires.

We explore what it means to have your money working for you, how you can make it work, and how you can start investing for yourself. I hope you’ve enjoyed this guide to getting your money going and preparing for a strong financial future.  

This article is about making your money work for you, but if you want to make money while you sleep, you need to learn how it works. If you learn the basics of how to invest money, you have the ability to make it work.

Overview: How to Make Your Money Work for You

To make your money work for you, money must be viewed as a tool. It is a means to an end. It is not a question of playing the stock market, gambling or making risky business decisions; instead, you must use the skills that you already have and discipline yourself to spend less and save more money. Think of your money as cool air flowing into a hot room. If you leave the doors and windows open while the air conditioner is blowing, all the cool air escapes from the room. But if you close the doors and windows, cool air accumulates in your space and makes it comfortable for you to enjoy. Holding onto your money works the same way.

When you make your money work for you, you are keeping the money from escaping via not spending it. The more money you control and keep, the more power you have over your finances. Your saved money becomes an army of financial soldiers who make your money work for you.  

Good Examples of How to Make Your Money Work for You

Investing in Equities (Stocks/bonds)

This is probably the most common way to grow your money. Equity investors earn dividends and enjoy money growth with the companies in which they invest. In addition, bond investing works the same way. For example, you can earn interest when bonds mature in a secure fashion.

Interest Earning Accounts

Interest bearing accounts such as savings accounts used to be popular when interest rates were higher. However, finding accounts that have good yields can be difficult. Examples include bank savings, high-yield money market accounts, etc.

Investing in Liquid Assets

Purchasing assets that hold their value or increase in value over time can be a great method for how to make money work for you. For example, antiques, art, jewelry, collectibles, vehicles, etc.

Earning Passive Income from Real Estate

Real Estate can be a great way to keep your money working for you. For example, owning a property that is rented out can generate passive income, as well as increase in value over time.

Peer to Peer Lending

As the finance industry becomes less centralized and technology evolves, individual investors have more options to participate in lending. For example, now there are websites where individuals can lend relatively small amounts of money to borrowers directly. Upstart, Prosper and Funding Circle are three examples. In addition, you can lend money locally to borrowers you meet face to face. An example would be hard money lenders in the real estate business.

Source: Investopedia

Cryptocurrency Asset Earnings

A new to earn income and invest your money is through cryptocurrency assets. For example, investors purchase crypto assets such as Bitcoin or Ethereum and then deposit them into an interest-bearing account. An example is BlockFi, which pays around 6% for Bitcoin and 5.25% for Ethereum.


Not traditionally considered a way of “earning” money, but the market in 2021 may be a profitable play for some commodities. Examples include gold, silver, platinum and more.

Create Streams of Income

A more active way of how to make your money work for you is to create income streams. For example, affiliate marketing income or other passive income streams.

Channel Income

Once you have begun earning income and it is time to invest you must determine where to invest the income. One way how to make money work for you is to funnel income streams into markets that are neglected and ripe for explosive growth. For example, in 2021 some investors believe that the electric vehicle market is set to explode. As a result, there is a belief that many metals commodities such as copper and precious metals will skyrocket in price. A smart investor might begin investing in mining companies or commodities to take advantage of the potential rising prices in the industry.

Make a Plan

If you work hard for a paycheck in a more traditional job, behave as an entrepreneur working for yourself, or work hard in your business as an owner. Whatever you decide, make sure you use it so that you can have a better future. While you are working with your money, don’t forget to invest and process some of it, but make an effort to invest it.

If you want to build real long-term prosperity, you must use your money for yourself. Discipline yourself enough to hold on to the money you earn, and then take the time to learn how to grow it.

Create a Budget

By creating a workable budget that you review frequently, you can prevent your money from being wasted and spend it wisely. Make sure you have a budget and stick to it no matter where the money goes, including the money you want to save and invest. This will help to direct money where it matters most, so that it can pay off debt, stay on the bills and start saving to achieve its future goals.

Creating a budget means creating a plan of how you spend your money each month, including your savings. This allows you to review your spending habits and focus on ways you can make the money work for you. Set yourself a target of how much time you can give to double your money and work with a financial adviser to plan how to get there.

Emergency Fund

Setting up an emergency fund is one of the ways to get your money working for you, even if you have to take a risk. As your wealth grows, you may want to try additional strategies and broaden the list of ways you can make your money work for you. Think of it as a way to get the money to work “so you can earn more for yourself. These proven strategies for getting your money to work will transform your savings and investments for the better.

If you don’t want to do a full-time job, you need to plan your investments so that you have money to live on and don’t accumulate extra debt. Most investments take time, but getting started as soon as possible is important to make your money work for you. If you get the money for the hard work, you can open an emergency savings account that holds the cost of living in cash for about six months.

There are many other ways to ensure your money is working for you and preparing for financial emergencies. If you’re ready to take control of your finances and get it going, you can make sure you take a 401 (k) or mutual fund and a savings account, and there are many other ways to make money for yourself.

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Debt Elimination


It is important to note that Piggy Bank Coins does not provide financial advice. We do not endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

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