If you have excess cash, you can and should invest the cash.
You can invest in mutual funds, which is easy to do and not too risky. Such investments pool investor monies
to buy basket of investments
You can invest in stocks, which is also easy to do but riskier. Such investments are shares of ownership in
companies.
You can invest in stock options, which is trickier to do and much riskier. Such investments are contracts
purchased with small down payment to buy or sell stocks at certain prices on certain days, with contract ending on specified
date. Investor only buys or sells stocks if profitable.
You can invest in stock indexes, which is tricky to do but not so risky. Such investments pool investor monies
to buy all stocks in different stock indexes, such as S&P500 and DOW Industrials.
You can invest in options of stock indexes, which is tricky to do and risky. Such investments are contracts
purchased with small down payment to buy or sell stock indexes at certain prices on certain days, with contract ending
on specified date. Investor only buys or sells stock index if profitable.
You can invest in the many products of futures market, which is tricky to do and very risky. Such investments
are contracts purchaased with small down payment to buy or sell large quantities of commodities (grains,metals,currencies,etc.)
on specific date.
You can invest in options of futures markets, which is tricky to do but not as risky as futures markets. Such
investments are contracts purchased with small down payment to buy or sell products of futures markets at certain
prices on certain days, with contract ending on specified date. Investor only buys or sells products of futures market if
profitable.
You can invest in products offered by the life insurance industry, which is easy to do and not risky
but quite expensive
You can invest in products offered by bank industry, which is easy to do and not risky, and not as expensive as
insurance products
You can invest in real estate, which is tricky to do but not risky, and very expensive
