5 Ways to Make Your Money Work For You

Sometimes it seems that no matter how much money you make, you always need that little bit more. Soon, that little bit more becomes a lot more, and you need to start thinking about how to make your money stretch even further. Alternatively, you could start thinking about how to grow the money you have so that it covers everything you need it to (and more, if possible). Here are some ideas.
Be Brave

Millionaires are not afraid to use their money to make more money. You may be worried about investing, or starting up a new business, but where will you be if you don’t do it? You’ll be exactly where you are right now. Nothing will have changed. Therefore, if you want your money to work for you, to grow, and help you realize the kind of lifestyle you know you deserve, you need to be brave. Being brave is not the same as being reckless; of course you shouldn't start throwing your money into investments and businesses without thinking. Being brave means doing your research, working out the best path to follow, and then doing it. Make sure that any money you do invest or use to fund a start-up business is money that you don’t need for other things, such as paying bills or buying groceries. If it means you need to step back and save up for a while, then that is a good option to take. If you research wisely and use only money you can really spare (it may take a while to see a return) then being brave can truly pay off.

Think Differently

Take a look at what you’re already paying for, and think about how you could do it differently. How much do you spend on groceries a week? Is there any way that you could reduce that cost? You could try searching for coupons, or working out a meal plan ahead of time, for example. Perhaps you’re paying for a subscription for a club or delivery plan. Is there a cheaper method of paying? Could you reduce your plan and still receive the items you want? If you rent out a property and think that you could sell it and buy a bigger one to make more rent, but are put off because of the taxes involved, you could look into 1031 exchange properties for sale to eliminate the tax portion of proceedings. Need fuel? Can you find a cheaper garage to fill up in, even if it means driving a little out of your way? Making a list of all of your outgoings and coming up with a way to reduce or eliminate each one can save you a huge amount of money for very little effort.

Pay Yourself

When you receive your paycheck, pay yourself. It sounds odd, but if you put a certain amount away, into a savings account (setting up an automatic payment works well because you don’t even have to think about it), before you even begin to pay your bills, you are more likely to save. If you pay the bills first and then look at what’s left, most people will be reluctant to put any part of it to one side. It’s a definite psychological thing because the end result is the same: you will have put money into savings, paid all bills, and kept enough money in your account for essentials (as well as a little extra if you want to, and can afford to). Having a part of your income ‘locked’ away in a savings account forces you to look sensibly at what you are bringing in. Is it really enough? If you’re unable to put any money away each week or month, then it’s time to really think about your outgoings and cut back. Or you need to start looking for ways to increase your income.

Interest Rates

When you do start to save, it can be easy to simply open up a savings account with your current bank. However, although that is convenient, and makes putting money away a little easier, it may not be the best option. Shop around to find the best interest rates. Sometimes online-only banks offer some great deals, and if you’re a new customer, you might even get a reward for joining up. There are also comparison sites that allow you to input what you need from a savings account, and they will give you a selection of accounts to compare and choose from. It depends on whether you are willing to put your savings away in an account that you can’t touch for a specific amount of time or not. If you are, you’ll get a much higher interest rate. There are also instant access deposit accounts, but if you feel you might be tempted to use the money in there instead of saving it, then this might not be for you.

Credit Cards 

Generally, unless you’re a very savvy saver, credit cards should be avoided, or only used for emergencies and specific situations (a credit card can be very useful when on holiday abroad, for example). If you do use one, it’s best to try to pay it off each month, otherwise you could run up large debts that you are unable to pay back, or that leave you short. If you do have a credit card, there are some ways that you can possibly use them to your advantage, however. Try transferring your balance from one card to another, making sure that the second card has a zero percent balance period. You’ll be paying no interest, which can significantly reduce your outgoings. Or, if you’re happy to continue paying the amount you were before the switch, you can pay your card off much more quickly. You might want to check out the rewards you can get with your credit card as well. Not every card offers them, but they might be able to save you some money. For example, some cards allow you to collect points, which can then be redeemed for goods, or even cash.

What are some ways you let your money work for you?

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