Now, more than ever before, you want to make your money work for you. Inflation is at an all-time high, and gas and food prices are pushing many families to the breaking point. It’s time to craft strategies to not only save money but to earn it and live comfortably again. Familiarize yourself with tried and true methods to take the financial power back into your life.
- Think About Passive Income Streams – Who doesn’t want to make money while they’re sleeping? Fortunately, the internet world has allowed us to achieve global domination – well, maybe not quite, but the ability to sell our products and services 24/7
- Write an eBook
- Create an app
- Sponsor posts on social media sites
- Create a course
- Rental property income
- Affiliate marketing
- Sell your photography online
- Flip retail products online
- Actively Work to Get Out of Debt – If you currently have credit card debt, there are two ways you can conquer it. The first is to set up a plan for how you will avoid using the credit cards altogether. The second step is to consistently and persistently pay the debt down. When you come into money you didn’t expect to, put it toward the credit card. Being free from this debt will let you take back the financial reigns.
- Analyze Where You Can Realistically Cut Back – You don’t have to necessarily kick your lifestyle to the curb to get hold of your money. There are, more than likely, a number of places you can cut back without really feeling the (penny) pinch:
- Start eating healthier. Avoid take out and fast food. When you plan out your meals you eat healthier and save money.
- Compare car insurance quotes. Chances are good you haven’t reviewed your policy in a while. A new policy could save you lots of money every month.
- Cut the cable cord. Not literally, of course. Cable is expensive and if you’re willing to get creative with programming and entertainment, you can adopt free and low-cost apps on your TV for next to nothing.
- Scrutinize Your Banking Fees – It doesn’t seem to make sense that it would cost you money to actually have money, but that’s life. It doesn’t mean you have to go down without a fight! Check the bank fees, ATM fees, and investment fees that your bank(s) are charging you and shop around for one that is more cost effective.
- Open a High Yield Savings Account – High yield savings accounts work a little differently than regular savings or checking accounts. While you will still have to pay taxes on the interest you earned, it’s a great way to get your money to work for you because these accounts have limited accessibility. You won’t be able to make frequent withdrawals, and there is a monthly limit on how much you can deposit and take out.
- Finally Learn How to Budget – Sitting down and creating a budget is about as much fun as going to the dentist. You know you must do it and that in the long run it will be good for you, but it’s no cakewalk.
- To get an accurate idea of your spending habits, gather 3 months of bills and receipts
- Figure out your take home pay for comparison to the expenditures
- Consider the 50/30/20 budget design. 50% of your money goes to your needs, 30% goes to your wants and 20% goes to savings.
- Use Automatic Bill Pay – Companies often give discounts to customers who opt for automatic bill pay. They are getting their money on time and you don’t have to worry about the bill getting paid. However, one caveat is that it’s a good idea to look at the auto bills every month or two to be certain there haven’t been any price hikes.
- Create an Emergency Fund – The sky might be blue right now but what happens when the rain falls unexpectedly? The roof might leak, the air conditioner might go out, and you never know what emergency might come your way. Create a special savings account for just such occasions with at least $1,000-$2,000 so you won’t have to dip into other funds that are designated elsewhere
- Start Funneling Savings Appropriately – Although you might only be allocating 20% of your income to savings – it will grow by leaps and bounds soon enough. What are your short- and long-term goals? Create separate accounts for each, and push money into each depending on their priority.
- Invest in the Stock Market – If this type of investing is foreign to you, consult with a financial advisor before making any real steps. Be patient with growth, have fun with the research, and watch your money grow over the months and years.
Even though it might seem like money is flying out the window, there are still valuable, realistic ways to make your money work for you. All it takes is commitment and consistency to the cause!
