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Forget offers to switch banks! I see this as a much easier way to make money

first_img Enter Your Email Address Edward Sheldon owns shares in Royal Dutch Shell and Legal & General. The Motley Fool UK owns shares of and has recommended PayPal Holdings. The Motley Fool UK has recommended HSBC Holdings and recommends the following options: short January 2020 $97 calls on PayPal Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Simply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. “This Stock Could Be Like Buying Amazon in 1997” Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee.center_img Our 6 ‘Best Buys Now’ Shares Image source: Getty Images. Forget offers to switch banks! I see this as a much easier way to make money Edward Sheldon, CFA | Saturday, 11th January, 2020 In the current low-interest-rate environment, everyone is looking for new ways to earn some extra money. Switching bank accounts in order to pick up cash bonuses is one strategy that has become popular. The problem with switching bank accounts for cash bonuses, however, is that it’s a hassle. Even if the new bank takes care of moving over all your direct debits and standing orders, you’re probably still likely to experience issues at some stage. For example, if you have a PayPal account or you use an FX company to send money internationally, you’ll need to set up your new bank details.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…In addition, there are likely to be terms and conditions associated with the cash bonus. To obtain HSBC’s current bonus of £175, for example, you’ll need to open an HSBC Advance account and pay in £1,750 per month.Finally, I’ll point out that switching banks for cash bonuses is not a sustainable way of making extra money. It may provide you with a quick hundred quid or so, but it’s not a long-term wealth generation strategy.Build your wealth with dividendsIf you’re serious about boosting your wealth, I’d forget about short-term ‘hacks’ such as switching bank accounts, and instead, focus on proven wealth generation strategies. Investing some money in solid FTSE 100 dividend-paying companies could be a good strategy to consider.When you invest in dividend-paying companies, you get to enjoy a share of company profits, several times per year, in the form of a cash dividend. It’s an easy way to make money – you get paid on a regular basis for doing absolutely nothing.What’s more, some of the dividend yields offered by FTSE 100 companies are very attractive compared to bank interest rates. For example, oil giant Royal Dutch Shell currently sports a dividend yield of around 6.2%, while financial services group Legal & General offers a yield of about 6.1%. Invest £1,000 in these companies and you’re potentially looking at dividend income of over £60 per year.A ticket to financial independenceYet the best thing about dividend investing, in my view, is that it allows you to compound your money, which is ultimately the key to building wealth. Reinvest your dividends, and you’ll pick up more shares, which will get you more dividends in the future.Build up a decent dividend income stream (which could be tax-free if your dividend stocks are held in an ISA), and you could potentially retire, and live off your dividend income.Risks to considerOf course, it’s important to be aware of the risks of investing in dividend-paying companies. In the short term, share prices rise and fall, meaning you may not get back what you invested. It’s generally recommended that you invest in shares for at least five years. Dividends are also not guaranteed.All things considered though, dividend investing can be a great way to build up your wealth. It really is an effortless way to generate a passive income stream. See all posts by Edward Sheldon, CFAlast_img read more