The beginners guide to free money, smart investing and passive income.

Written by

T.P.Jackson and J. Hallam

Copyright 2012

Smashwords Edition, License Notes

This ebook is licensed for your personal enjoyment only. This ebook may not be re-sold or given away to other people. If you would like to share this book with another person, please purchase an additional copy for each recipient. If you’re reading this book and did not purchase it, or it was not purchased for your use only, then please return to Smashwords.com and purchase your own copy. Thank you for respecting the hard work of this author.

Free Money, Smart Investing

The concept of free money is one which is thrown around a lot today. The idea that you can make an income by doing absolutely nothing is of course fantasy, however, making income from doing very little, or just doing something once is quite achievable. This is known as passive income.
The ways in which people do this are vastly different ways, indeed there are quite literally hundreds of ways in which a regular income can be achieved from doing very little.
The purpose of this blog is to enlighten, inform and encourage you in all things investments.

Get On Your Way To Succsessful Investing

When looking at investing many people think, I don't have enough money to invest, you need thousands of dollars if you want to make any good return. This is not true.
If you have a regular income and can survive a pay period without spending it all then you are already investing.
Boring though right?
Wong.
Saving money is an essential component to investing and there are several steps which need to be taken to optimise the amount of money you save and once done you will see your savings increase exponentially.
Make A Goal
Goals are very important. The questions you need to ask yourself are, how much do I want to save? and over what period?
Budget
Before you can put anything away you need to know how much money it will take for you to live on. You should come to an amount which isn't so large that it will effect your quality of life. Anything is better than nothing and a few dollars per week add up over time. Remember to think about your goals here, it may be necessary to rethink them.
Choose A Bank
You will already have a bank account which you use for everyday things, for instance, receiving payments, shopping. Do not consider using the same bank to open your new savings account. By choosing a different bank you can not link your accounts which means there are no instant money transfers between your savings and regular accounts. The more inconvenient it is to access your savings the less likely it is that you will be tempted to.
Choose An Account
Banks these days can offer some excellent interest rates which really help boost your savings. All the research you need can be done online when selecting the bank account you want to open. Firstly look for accounts with a high interest rate (usually around 6% is the highest, but that said don't settle for the first account you see offering that.) Another important factor is how the interest is compounded and paid. Look for an account which compounds daily and pays monthly, that maximises the amount of interest you earn. And of course compare any fees and conditions which may be associated with the account (many saving accounts have a minimum amount that you need to save in order to receive that months intrest.)
Cut Up Your ATM Card
You Will likely receive an ATM card for your new savings account. Cut it up. As I said earlier the more inconvenient it is to access your money the less likely you will.
Let The Money Flow
Each pay day put amount of money you worked out earlier into the account. It is important to not put more than you can afford it. Its better to put less in at the beginning of the pay cycle and to wait to see if you have any left when the next cycle comes around. If you put to much in and then need to withdraw some you may miss out on that months interest.
Remember interest earned is free money.
Watch Your Money Grow
Very soon your money will begin growing. Regular weekly payments plus monthly interest will allow you to watch it before your very eyes.
You are now making regular payments. Congratulations on your first investment!

Currency Exchange, A High Return Investment

So you have achieved your savings goal and now have a few thousand dollars to play with. Where do you go from here?
The currency exchange market is an excellent way to turn your few thousand dollars into many thousands of dollars.
The foreign exchange market (forex, FX, or currency market) is a global, worldwide-decentralised financial market for trading currencies. Financial centres around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies.

The foreign exchange market is different from stock markets for a number of main reasons.

· its huge trading volume representing the largest asset class in the world leading to high liquidity

· its geographical dispersion;

· its continuous operation: 24 hours a day except weekends, i.e. trading from 20:15 GMT on Sunday until 22:00 GMT Friday;

· the variety of factors that affect exchange rates;

· the low margins of relative profit compared with other markets of fixed income; and

· the use of leverage to enhance profit and loss margins and with respect to account size.
As such, it has been referred to as the market closest to the ideal of perfect competition, notwithstanding currency intervention by central banks. According to the Bank for International Settlements, as of April 2010, average daily turnover in global foreign exchange markets is estimated at $3.98 trillion, a growth of approximately 20% over the $3.21 trillion daily volume as of April 2007. Some firms specialising on foreign exchange market had put the average daily turnover in excess of US$4 trillion.

The record for the highest profit achieved through currency exchange was George Soros who made $1billion in one day.

There are a number of ways in which you can go about dealing currencies. The most popular of which and my recommendation is Forex.com. They offer a lot of information and resources as well as giving you predicted market movements which really takes the effort out of currency exchanging.
Although there are many other institutions which offer very similar packages, you may find that one will suit you better.

Remember be cautious, take your time and do your research. Despite Forex having already done all of your research it can help to do your own. Remember there is always an element of risk with this and don't think just because George made $1billion in one day you will.