4 Ways to Make Your Money Grow

Most people have heard the saying about making money grow and work for you at least a few times over the years. However, in real life, this concept can seem elusive. Money builds on itself or produces additional money when it earns interest and dividends, when assets increase in value, and more. If you are ready to put the power of money growth to work for you, follow these important tips.


Reduce Liabilities

While you can make money work for you when the money is in the form of an asset, you can also lose money through liabilities. High interest rate debts, such as student loans and credit cards, result in financial loss to you in the form of monthly interest charges until the debts are paid off. You can reduce this expense and potentially pay the balance off faster when you refinance these loans witha lower interest rate loan program. Eliminating liabilities altogether should be a goal. This will enable you to save and invest more money regularly.

Build a Nest Egg

When you have a sizable nest egg to fall back on, such as a well-funded emergency savings account, you will not have to sell your investments each time a financial issue arises. Selling at inopportune times can result in financial loss rather than growth. Before you actively work on investing funds in stocks, bonds, and other assets, ensure that you have at least a couple of months of expenses saved in an easily accessible account. You may continue to build the account balance by making small monthly contributions even after you start investing heavily.

Fund a Retirement Account

Investing money in a retirement account is a smart idea for many people, and this is because many retirement account contributions result in immediate tax savings. This means that you may be able to save and invest even more money when you take advantage of the tax benefits in a retirement account. However, remember that it can cost you money to withdraw this money early. If you have any thoughts about cashing in on your investments before retirement age, such as when you pay for a child’s college education or wedding, you should fund a non-retirement investment account as well.

Choose Additional investments

Regardless of whether you choose a retirement or non-retirement investment account, it is important that you choose solid investments that balance risk and return. You need to determine what your comfort level is with risk. Stocks, for example, may be riskier than CDs and bonds. You can also invest in other assets, such as real estate, artwork, gold bullion and more. While you need to grow your assets well, you also need to create a well-rounded portfolio that reduces risk related to loss in one or two different asset classes.

Regardless of your current combination of assets and liabilities, you may be able to achieve better growth in the years to come when you follow these tips. Remember to review the growth of your assets periodically so that you can make thoughtful adjustments that promote a higher rate of return.

This post might be linked to any one of the parties listed on my Link Parties and Communities Page


Do you have any tips or thoughts to add?

Related Posts Plugin for WordPress, Blogger...