Do You Know How To Make Your Money Grow?
Doesn’t everyone want to see their money grow? Putting it into a savings account with little interest is what most people will do to see their money grow and many people think that investing in stocks and bonds is something difficult that only people who ‘know what they’re doing’ can do. While this is true, you do need to know what you’re doing; it’s also possible to learn and become one of those people who knows what they’re doing. If you really want to make your money grow though, you need to start from the bottom. Just like making anything grow, it starts with the foundations, the roots; you have to nurture whatever it is you want to grow, have patience and look after it. So, like planting a seed, how do you make your money grow?
Track your spending, savings, and investments
If you want to grow your finances then as mentioned, you need to start from the bottom, from the foundations and make sure you get this bit right to see it grow. This means budgeting and tracking your money. First of all, planning how you will spend your money each month, including how much you will save, is really important and then you also need to track how your actual spending aligns with the plan.
It isn’t enough to just plan how you’ll use your money, you need to measure whether or not it’s working and luckily there are several apps and software programs which can make this really easy. With most of them, you can sync your bank accounts and let the program do the work for you. Without tracking your spending, you won’t know where your money is going. You won’t know if you’re on track to meet your goals either. And, if you do not measure your success, it’s tough to improve your situation by growing your money even more.
Choose The Right Account For You
There’s no point saving money every month if you’re not putting the money somewhere where it’s safe or where it can grow by just being there. There are many different types of savings accounts, some which you can dip in and out of, others which you cannot touch, some with good interest rates, others with very low-interest rates. Each has its own benefits, so you need to compare them and work out which one is right for you.
Take a look at articles such as the best Money Market accounts in 2020, which will guide you through, money market accounts which are a type of savings account. They have some checking account features and can offer more flexibility and easier access to your savings than a traditional online savings account.
Pay Yourself First
If you want to grow your money, you need to commit to saving some of it. If you plan to save only what is left after paying bills and setting aside spending money, then you’re going to end up with a lot of money spent and not much saved. The secret is to treat savings as an expense, act as if your savings is a bill you need to pay. Train yourself to think of saving as being just as important as your other bills, so in your budget include a pre-determined amount of savings, and automate them. Also, don’t forget to reassess your plan every now and then to see if you can increase that pre-determined amount. If you stick to this strategy, your savings account will grow quickly and continuously.
Spread Your Bets
If you’re looking to invest, then it’s a good idea to spread your money across different asset classes such as shares, property, cash, and bonds, etc. Don’t put all your eggs in one basket, and nothing is certain when it comes to investing.
In saving and investing, it’s important to be consistent in whatever you do. Even if it’s only a small amount of money that you put away each month, always make sure you do it.
Managing your money is like healthy eating, you don’t need to be a qualified nutritionist to know how to eat healthily, but you do need to know basic facts about fruit and vegetables, vitamins, protein and minerals. To work out how to have a balanced and healthy diet. It’s the same with managing your money. You don’t need to be a qualified financial adviser, but you do need to have some basic knowledge about how money works. Spend a little time each week reading the money pages in the papers or online. Learn a bit about saving and investing and invest in books or audiobooks which will help.
Start a side hustle
If you really want to grow your savings, you can either spend less or earn more. While most of these tips will help you spend less, what if you also want to earn more and find a way to make extra money outside of your full-time job? One option could be finding a traditional second job. However, a lot of people gravitate towards the flexibly that work-from-home jobs offer.
Depending on your skillset, you might consider proofreading, virtual assistant work, customer service, web design, or any other number of opportunities out there.
If you build your budget around your primary income, you can throw the extra money from your side hustle straight into your savings.
Create A Passive Income Stream
Passive income is a source of revenue that continues even after the work is complete, for example, royalties from a book or film. While that’s not the easiest of examples to do, there are plenty of others which are such as using a cashback or rewards credit card or buying via cashback websites. These are essentially third party portals that you visit before clicking through to a website from which you were already going to buy something. Only use either of these if you were planning to spend that money anyway so that you really could be getting something for nothing.
Boost your earning potential
If you’re serious about growing your money, you’ve got to aim to boost your earning potential. Perhaps you like your current career but you’d like to take things to the next level? In this case, research the higher paying positions in your industry. Write down a step-by-step of what you need to do to get there. Whether it’s the highest paying data jobs or the best paid developer roles, ensure that you conduct thorough research.
To pursue a higher paid role, you’ll want to develop your skills and appeal. You might do this by further training and education, networking, or improving your personal brand.
Growing your money takes discipline, but by doing some of these things, your money is guaranteed to grow.