Monday, May 2, 2016

5 Ways to Make Your Money Work for You

In an individual’s life, it’s important to utilize money to work to your benefit. It can make things easier in the long term and help in living a more content life. We will talk about 5 ways you can make your money work for you, from investing, to saving and yes, even to using credit cards.

Utilize Credit Cards with Useful Rewards Programs


Sure, financial advice is usually anti-credit cards, but done correctly, they can offer benefits. 

Sign up for one that provides you with rewards that are of interest to you, such as airline miles if you are an avid traveler, and then pay some of your monthly bills/expenses with the card. You must pay off your balance every month, though, for this strategy to work.

Don’t Give up Free Retirement Money


If you are employed by a company that matches a portion of what you contribute to your 401(k), you should at minimum contribute up to the maximum amount they match. That match is essentially free money. 


Or think of it another way, if your company matches ½ of what you contribute, that’s an immediate 50% return on your regular contributions, which blows away the average market returns.

Invest


Put some recurring money into the markets. You don’t even need to study the stock market to have success over the long term. Over many years, regular investments into an index fund will do well for you. 

By steadily putting money in and even buying on the dips, you’ll be ahead of most people. A useful tool is an online investment growth calculator found on many banking websites.

Budget


If you have no idea how much money you’re spending each month, chances are you are wasting a lot of money. Every little bit truly adds up. Take 60 days and keep a log of everything (and I mean everything) you spend each day. 

At the end of that 60 days, you’ll immediately find ways to save. You’ll likely be able to make larger, smarter purchases that save money in the long run.

Eliminate Debt


If you are carrying balances on credit cards, the interest rate is likely pretty high. This is a lot of money being thrown away that could be used to work for you in a positive way.

Bottom Line


As you can see, there are many ways to get your money working on your side. Give some or all of them a try and get the ball rolling on the better piece of mind that financial stability can bring you.



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