A vast majority of people in the world have spent their entire life working for money. For the few smart one-percenters, the reverse is true. Their money works for them instead. To make money work for you, you may need to change your thoughts about money-making. Today, there is great occupational mobility as folks migrate from one job to the other, and one business to the next, just to secure lasting financial comfort. Alas, after sustained effort, spanning years, many still end up either being broke or heavily indebted with loans.
According to a personal finance article by USA Today, the average retiree income in the U.S. is about $48,000 while expenditure is close to $46,000. To put this in perspective, the average before-tax income of working households is $74,000 and expenditure is at about $57,000. This data signifies that retiree households in America are barely keeping their heads above water.
Financial freedom comes only when you embrace smarter money-making methods. There is every need to multiply your money today and attract additional income even while you’re sleeping. You can build a strong foundation for your 401k plan by the right investment incorporated into your savings plan.
Steps Needed to Make Money Work for You
Make money work for you by restructuring your finances following these methods:
- Maintain a debt-free life: Living a debt-free life is the first necessary step to smart money. Debts can limit your investments and probably sabotage your plans. Avoid projects that eat deep into your savings and necessitate reckless borrowing. Some debts are invited by the debtors through the mismanagement of their resources. Of course, debt may accrue as a result of accidents, natural disasters, and other emergencies. You may not be able to help those, but you can and should make it a point to live relatively debt-free.
- Save: Building a solid financial background is a good step toward actualizing your financial freedom. You can lay a strong financial foundation through savings. Cross-examine your monthly sources of income and draft a good savings plan. Saving a particular percentage of your monthly or weekly income will help you avoid the loan option in future projects or emergencies. Don’t just save a token amount from your income; keep a reasonable amount of money that helps to guarantee your financial freedom. There is, of course, the popular rhetoric of saving at least 20% of income. However, you can even take it a step further by following Forbes’ 30% of income saving plan.
- Multiply your income streams: Never be satisfied with one source of income. To make money work for you in the future, realize you need as many sources of income as possible. While seeking for alternative income streams, choose only a source that will not affect your current job or business. When you finally secure a side job, schedule your daily activities to suit your physical and mental capacities. Before you close the deal on a second job or business, consider the financial and other responsibilities attached to it.
- Look carefully before you leap into an investment: There is deliberately a process to investment. Whether you are doing this yourself, or via a portfolio manager, your due diligence is key. Most business liquidates after operating for a short period due to poor information. Carrying out a thorough feasibility study on a particular investment plan will enable you to learn everything you need to. If you’re confused about what to invest your money in, visit successful business owners and entrepreneurs. Experience is the best teacher, but it doesn’t make you better than someone else that is paying tuition. A good feasibility study will serve as a backbone towards bringing your investment plans to a real-life investment application.
- Build strong self-confidence: When you’ve made up your mind to invest in a particular sector, develop self-confidence, and go all out. There are legitimate risks in every venture, but confidence will lessen debilitating fear and enable you to actualize an investment plan successfully. Certain questions you must face with resolution include:
– What if I’m investing my money in the wrong sector?
– Will I be able to juggle this new business with my other activities?
– How can I manage the risks involved?
– How much should I invest?
Some of these questions and more might try to influence your perception of your investment plans. Having strong self-validation of your decision is the best way to escape this ill-thought.
- Invest: After considering the possible risks and challenges that will possibly occur, and the benefits involved, invest your money. If your investment plans are well informed and organized, your money will experience growth. Investments are at the roots of the “make money work for you” concept. Once you have a good thing going, you can take a backseat and watch your investment appreciate over time.
- Monitor your investments: We did say you can make money in your sleep; however, you may need to sleep with one eye always open and beamed on your portfolio. Never fail to monitor your investments. Evolve a periodic check that allows you to keep abreast of what is going on. If you are using a manager, periodic meetings are a must. Remember, the manager works for you and not the other way round.
- Enjoy your financial freedom: Your financial freedom will come immediately as soon as your investments begin to yield profits. When your income grows, also increase your savings. You may then reinvest those savings in a cycle of profits.
In Order to Make Money Work for You, Increase Your Monthly Income
If you’re a low-income earner with more expenditure than income, you can avoid bankruptcy by getting another income stream going. You may accomplish this by getting a second job, starting up a small business, or rendering a particular service to people. There are a lot of opportunities online or menial jobs that you can add to your current job. Some of these menial jobs might even bring you more income than your current job. Some of these side hustles include:
- Become an affiliate marketer: A lot of big companies usually seek the service of affiliate marketers who can advertise and sell their products to their designated customers, using an online platform. You can work as an affiliate marketer to one of these companies.
- Drive an Uber: If you can drive, and you have a license too, you can join a ride-hailing platform. This job will not affect your main job; it will only allow you to utilize your free time and weekends to put your account further in the black.
- Organize a webinar: You can conduct a webinar and teach your audience about a particular skill, service, sports, or anything that will benefit a particular demographic.
There are a lot of side jobs out there. You can render as many services as you can, provided that people within your vicinity value such service. If you stay true to these terms, they are guaranteed to make money work for you.