7 Ways Your Money Can Work for You6 min read
Money means stability and security. “Make your money work for you” is something you often come across when someone gives you financial advice. So what does that mean? How can you achieve it?
There is not a single way to do it. Putting your money to work means taking control of your finances but it doesn’t end there. You then use it to continuously improve your financial security and building wealth.
You need to figure out your net worth. You need to sort out your liabilities. Only then can you come up with an objective. That is, how much money are you willing to earn?
How to Jumpstart the Process
You only need to keep two things in mind to initiate the wealth building process.
1. Start Saving Early
It doesn’t matter if you’re in high school and getting a few spare dollars from tutoring. Try to save a couple of dollars even then. Saving early is the key to making money work. Stockpiling money will help you during your retirement or even venture into your own business. The longer you keep the money in a savings account, the more it’ll grow over the years.
2. Save Consistently
Setting an amount of money aside once won’t help you get anywhere. Putting aside small amounts of money monthly or bi-monthly will. This way you can build your wealth for the future without impacting your current spending. Those who are wealthy spend less than they earn. Keep the money left over in saving accounts and lets the compound interest do its magic. You should give it a go too.
How to Make Your Money Work for You
Getting high paid jobs isn’t the only way to get wealthy. Here are a few ways that can put your money to work for you.
1. Talk to Someone Successful and Outline a Plan
It doesn’t matter what the state of your financials are. If you want to increase your capital, talk to someone with a strong and successful financial history. They probably won’t have every detail you need but you’ll get the right directions.
It’s advisable to reach out to people in your own network or someone in a similar line of work as you. They’ll be more relatable. Regardless of whom you go to, make sure you have the right list of questions.
2. Work on a Budget
What works for others may not for you. You won’t be able to take control of your finances otherwise. A budget will tell you how much you can afford to spend without affecting your current spending.
3. Open a Savings Account
A high-yield savings account is a lazy man’s ticket to wealth. It’s important to keep some emergency savings in hand for unforeseeable accidents or expenses. The money in savings accounts generates more value without any heavy duty tasks.
4. Find Yourself a Passive Income
You won’t have to do any extra work for this. You just have to make a few smart investments. It’ll definitely cost a penny but it’ll pay off in the long run. These investments include real estates, silent partnerships and even affiliate marketing.
5. Invest in a New Business as a Silent Partner
This is a follow-up point to the last one. A silent partner doesn’t have to handle daily operations. So you get to reap the benefits by investing at the beginning only. The catch is, you don’t get a say in any of the decision making.
6. Get a Professional Degree
Increasing your worth in the market by getting a professional degree or certification will definitely increase your net value. Not only will you be earning more, you’ll also have a wide range of skills that can be used for consulting too.
7. Clear All Your Debts
You pay more than the original cost of goods if you’re in debt so these long term payments will cut a substantial amount of your income. If you don’t clear these debts quickly, you’ll be met with financial burdens. Once this is out of the picture, you can redirect your money into more important things. You can begin growing your wealth and become financially independent.
Why We Recommend These Books
Loral Langemeier didn’t write this book for experts. It’s super easy to follow. The best thing about this book is that it outlines a step by step process on how to put together a fast money business venture. You get to reflect and discover hidden talents and skills of your own and see how they might be utilized to accomplish your goals.
You might not be able to make a career out of it but you can think of ways to earn some side-money efficiently. “Sinking. Slowly.” The author knows how easy it is to get distracted by procrastination. She doesn’t push you towards something big immediately. You’re simply asked to change your perspective and do things you already are but smartly.
Make smart money that makes a real difference in your life. Don’t let your fears deter you. The author also uses case studies to help illustrate her ideas. Don’t just get a big idea, execute it. Read this book to find out how to turn your passion into profit.
People don’t agree on a lot of things but the stock market being unpredictable and often unprofitable is something everyone will agree upon. Michael Shuman urges his readers into “going local.” Here’s why.
Moving your personal investment strategies from Wall Street firms to local businesses might bring you amazing opportunities. The stock market is cutthroat and brutal. You won’t get personal satisfaction from that investment. While the options for investing locally are limited, the author believes that there’s much more to learn from the vibrant local communities. It provides a great alternative for ethical planning and investing too.
The book talks about how you can go beyond mainstream financing methods. You’ll be pleasantly surprised by the funny anecdotes too. Once you pick it up, it’ll be hard to put it down.
It doesn’t matter where or how you’re investing your money, always have a specific set of goals. Are you planning to buy a new home? Do you want an early retirement? This will motivate you to focus your spending and divulge in investments that will pay off.
While you’re working on your job or business, don’t forget to set aside money for the future. A smart individual knows that all the money they’re earning will be in moot point if they can’t build a strong financial future. So clear all your debts, put your money to work for you on the side and invest in a better future.