Surplus money refers to your short-term savings— money that has been sitting in your bank account for quite a while. Fair enough! You may have some short-term goals that you aspire to achieve through this surplus money. Things like buying a new vehicle, paying your school tuition, or paying your monthly bills, as long as you achieve these tiny little goals with this surplus money, it is totally fine.

After all, you are bound to achieve these milestones in order to sustain your life. You can not sustain yourself for long without paying your monthly bills. Or, you should be paying your school fees on time - every time. That is what makes you a responsible human being - and a responsible citizen.

Pixabay / Pexels / Surplus money is the ‘extra’ money that sits in your bank account to achieve short-term goals.

However, you can take this surplus money a step further by increasing your savings once you hit a point where you can pay your monthly bills and still have some money left in your bank account. This is the real trial time to be smart with that additional money.

Making The Best Use of Surplus (Extra) Money

What will you do when you pay your bills and household essentials and are still left with a decent amount of money? Will you keep it there for an unknown time? Well, if that is a yes, you have misunderstood the functionality of money. The better usage of this surplus money could be investing it. By far, investment - no matter how small or big - is the most effective way of doubling your wealth.

How? Simply, once you put your money into an investment portfolio, it will keep generating revenue for you. You will no longer be working on this portfolio. All you will have to do is put in your money and await the turnaround. It hits differently when the staggering revenue comes in.

Andrea / Pexels / With a touch of creativity, you can generate staggering revenue through your surplus money.

However, it is equally important to know that there is no such thing as overnight success in investment. You will encounter grave loss frequently. But you must have a stubborn mindset to learn from these mistakes and set yourself up for your goal.

Once you are clear on that, the next question that comes up is where to put your money. Of course, there are thousands of portfolios to invest your money in. What works best?

Dany / Pexels / Because Overnight Liquid Funds have an instant turnaround, they are ideal for surplus money investors.

Well, it turns out that if you are looking to invest your surplus money, overnight liquid funds are the best fit for you. Why? To begin with, they do not require massive investment. Secondly, they mature in a day.

Through overnight liquid funds, you can buy short-term portfolios like securities and treasury bills. These ‘instruments’ do not require massive investment. You can kickstart your investment journey with a few hundred dollars by buying these stocks. The best part? You might feel the turnaround within 24 hours of your investment.