10 Ways to Let Your Money Work for You

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7. Angel Investment

Many businesses are started for as little as a few thousand, or even a few hundred, dollars.  Often, they are started by students or people living paycheck to paycheck. In some cases, these entrepreneurs are able to borrow money from friends or family members to get started. Other entrepreneurs, though, need to find seed capital from other sources. As an angel investor, you would provide either the startup capital or early stage growth capital for a small business in exchange for a percentage of the company. This can end up meaning a share of any profits that are not reinvested in the company and/or the opportunity to sell all or part of your share of the company to other investors some time down the road. Be very selective about the people and businesses in whom you choose to invest.

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