Nowadays, a full-time employed person’s salary is not enough to cover the daily-to-monthly expenses. Some people invests in multi-level marketing (MLM<\/a>), a popular home-based entrepreneurship that a lot of people has been successful. Not all are legit<\/a> but most of them are. You need to be persuasive enough but not annoying as to be able to entice potential clients to buy. Some use social media networking sites such as Facebook<\/a> and Twitter<\/a>. They post their products, and sometimes their achievements If you’re not into selling, here’s a simple workaround for you to earn extra money. It may take some time but it will never fail – opening a savings account. But how would your money earn if you just keep it in a bank? The answer is interest.<\/p>\n In banking terms, interest is what the bank pays you for using the money you entrust them by lending it to other people as loan or credit (either cards or overdrafts). <\/p>\n APR VS APY<\/a><\/p>\n Some banks lend your money to other people and shows them the APR (annual percentage rate). The APR is the annual rate of the interest, simple as that (i.e., if monthly rate is 1%, then the APR is 1×12 = 12% APR). But what you don\u2019t see is that the interest compounds monthly (most of the time). This is where APY (annual percentage yield) comes into play. APY will be explained later in this article.<\/p>\n If your balance stays on your card for a month, your interest will be equivalent to 12% – the yearly rate. But if it stays for a year, it\u2019s a different story. The effective interest rate will be 12.68% from the monthly compounding.<\/p>\n In terms of lending, some banks will quote you the APR. It may look like a small figure but if you really analyse, you\u2019ll end up paying more because it does not take into consideration the compounding within the period you owe them the money (they call it term for loans). On the other hand, they usually pay depositors back less than half of what they earned after lending the money you lent them to other people. Check your local bank\u2019s lending against their savings interest rate. Sounds clever? Well, that\u2019s how the bank earns money.<\/p>\nbut most of the time, other people’s exploits.<\/strike><\/p>\n