The Money Multiplier: Take A Little Surplus And Make A Big Profit

Do you ever find yourself in the position of having a small amount of surplus money, but not much to do with it? It may seem like a strange question. And if the answer is "yes", it's probably not the kind of thing you feel comfortable asking friends about. "So, guys, I earned too much money last month and haven't been able to spend it all. What do I do?" "Oh, you poor thing. How will you get over this crushing blow? Maybe you could lend it to me? I don't get paid for a week, and I'm living on noodles!" But having a little surplus, although nice, can seem weirdly unsatisfactory. It's not hundreds of pounds, so you can't update your fridge or buy a new TV. By all means you could put it back into the next month's budget. But you've earned this surplus, and it feels like a shame not to celebrate it somehow. Well, why not put it to work for you? There is a saying among some of the most experienced gamblers around, which goes: "Always play with house money". In other words, taking risks is fine when the money you have isn't coming out of your budget. There are ways to make a little money into more money. You don't want to try it with next month's heating budget because they aren't guaranteed to come off. But if you have a surplus, why not?

Become A Market Master
For a few years now, stories have been bubbling up about how homemakers and retirees are playing the markets in their spare time. It's not on the level of hedge funds, which make and lose millions on the roll of a dice. It can, however, become a very lucrative sideline. The most popular way to do it is in Forex trading. For a very small initial outlay, you can trade foreign currencies based on the exchange rates as they rise and fall. Every time you make a gain, you can reinvest in different trades. Do this well enough and often enough, and your small surplus can start to look like a potential retirement fund. You need to make sure you know what you're doing, so start with very small trades. One tip that serves domestic Forex traders well is to keep your eye on the news. Knowing which countries are thriving and which ones are in difficulty can tell you when to buy and sell different currencies.

Break The Bank At Las Vegas
Of course, your surplus probably isn't large enough to cover the airfare, let alone the gaudy and overpriced hotels. So rather than actually going to Vegas, online and mobile casinos are a better way to try your luck. Don't misunderstand the "Always bet with house money" tip, here. It does not mean "use next month's mortgage payment to maximise your winnings." Sites like CasinoUK offer all kinds of special deals to new customers. It goes without saying that nothing is guaranteed - that's gambling for you - but good instincts and calm nerves can go a long way. As with Forex markets, the stakes will initially be low. But if you stick to your promise of only using money you can afford to lose, then you can find a way to raise those winnings bit by bit. Everyone has their own preferred game when it comes to casino gaming - but if you find one where you're on a hot streak, stick to it. Just don't chase any losses too far!

Online Reselling
The most successful business owners will tell you freely that their early successes were small and based on patience. Almost nobody will make their first deal for six figures, and it will usually be unglamorous. The key is not being pretentious enough to turn down a modest profit. Leave that for the day you’ve made enough to become a property magnate. Some who are billionaires today started by selling electrical goods out of a van. That's not exactly a rich seam to mine these days, so you need to branch out. One way which can work is to buy things in bulk online and make money by repackaging and selling them - still for low prices, but for a clear profit. With crafting being as popular as it is today, people will think nothing of going online and spending a few pounds on beads or buttons. More and more people are trying more diverse dishes in the kitchen. Some of the more popular curries include six or seven different spices. So why not buy these things and then resell them at competitive prices? Sure, you are not going to get rich overnight doing this, but as a means of making money it has the potential for growth. And if that surplus is just going to be sitting around doing nothing, why not try it?

Donate To Charity
There are reasons why it is more than pure altruism. For one thing, charitable donations can be written off against a tax return. So it makes some basic financial sense anyway. In addition to that, though, the feeling of making a charitable gift is undeniably a satisfying one to experience. Whether or not you're religious, it can feel like you are putting something back in the world, even if it is a relatively modest sum. By taking this kind of attitude to money - that it can do more for the beneficiaries of that charity than for you - you can gain some clarity. It makes you less hung-up on trying to chase every penny. As you develop a more mature attitude to money, you can act with greater calm in any future transactions, and do better at them. And of course, there is the initial point - giving to charity is simply a good thing to do. There are always people worse off than you - especially when you have a little budget surplus. So investing the money in their well-being is a noble act. And don’t forget to agree to Gift Aid!

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