As I stated in my last post, I will be discussing one of the income streams that I have learned about. I will start by discussing one of the easiest to learn and understand, Money Market Accounts. Money Market Accounts, are very similar to any other savings account except they usually earn slightly higher interest. Some things to be away of about money market accounts is that most require a minimal deposit and you have limited access to your money sometimes you can only withdraw money 3 to 4 times a year. The interest rate on Money Market Accounts right now ranges between 3% to 6% annually. Currently the interest rate on mine is 5.04%.
Money Markets, are a great place to put money that you expect you may need but prefer not to touch it. I love to keep my emergency fund in a Money Market account. The Money Market account that I use is Paypal. There interest is very very competitive. Plus I do not have limited access to my account. I can withdraw money at anytime. It takes 3-5 business days to send money to my bank from Paypal but, I also have a debit card and I can use that to withdraw money instantly if I need to. Also Paypal, does not require a minimum deposit to open their Money Market account. I do not think Money Markets are FDIC insured but historically your principle in a Money Market account is very safe.
I encourage you to open a Money Market account if you don't already have one. Deposit money in there and "Walla!" you have your first additional passive income stream. I don't care if you deposit only $10 in there you have just started an additional passive income stream. Congratulations! Now just use your additional cashflow to add to it. You will be getting small interest payments monthly into your account, now your money is working for you, instead of you working for it!
In the next post titled "Understanding Wealth" I will talking about stock dividends!
Till Then,
Jackie O'Quinn
1-800-620-3019
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