How to make money work for you 2021

  

how to make your money work for you

today's post 

is all about making money work for you

in the post 

we will discuss 10 ways you can leverage

your money 

or time to increase your net income or

create a small fortune for yourself.

one open a high yield savings account before sending your money off to do your bidding you'll want to have an emergency savings account of roughly six months of living expenses stored in cash says sean gould a wealth strategist with a waddle and associates an FDIC federal deposit insurance corporation would be a smart place to keep it as it's a high-yield saving or checking account where it has the potential to generate more money as it waits an average savings account offers an interest rate of approximately 0.01 and an average checking account is the

the digital equivalent of placing your money 

under the mattress but the difference is high yield saving and checking accounts offer interest rates that exceed 1 essentially 100 times what you'd receive otherwise usually, these accounts can be found at online banks which keep costs low by forgoing brick and mortar locations two develop a budget is something that we've heard a thousand times before but how many of us actually have and stick to it if you're guilty of being in the dark about your incomes and outgoings coming up with a budget is one of the best ways that you can start taking control of your finances budget will tell you if you're spending more or less than you can afford it also helps you steer your money to where it matters the most so you can be on top of bills reduce debt and begin putting money towards your future goals your budget should sum up all your living expenses so you can compare the total you spend against your take-home pay do away with or reduce any unnecessary expenses and figure out a sensible savings plan three develop streams of positive income few things can contribute to financial security quite like developing passive

revenue sources 

the most accurate definition of the term passive income is money earned with little to no effort expended according to Investopedia once you set it up passive income streams earn you money while you sleep it might sound too good to be true but creating any stream of passive incomes would need you to make an investment of some sorts upfront whether of your money or time but can also lead to huge payoffs in the future as an entrepreneur, it's true that you'll

likely always need to depend on the 

day-to-day work you perform for your clients but you can always tap into your creative side and find other ways to make money using your skills and abilities

silent partnerships in business or real 

estate are some of the common forms of passive income but it can also be created for making youtube videos using affiliate marketing

on your channel 

many content creators use monthly subscriptions to monetize their audience try to be creative when considering how you could adapt your services into a product that provides a passive income service always be in tune with the needs of your target audience and strive to create something that offers real value

4. invest in the market after your ira 

and 401k

next is an investment account it's 

important to take part in the markets being in the market and attempting to time the market is not the same thing most experts will advise against putting money in and pulling it out to take advantage of favorable fluctuations and minimize the loss when the market takes hit overtime wavering dips in the market should even out resulting in an overall gain so you have to leave your investments alone to take advantage of this effect it's advised to not have more than three to six months sitting in cash people like the comfort of money in cash because they're still burned from 2008 and 2009 but inflation will eat away at your money sitting in comfort is not a good way to make money it's a common misconception that you need to have a lot of capital to even think about investing in the stock

market 

to quote William O'Neill entrepreneur and stockbroker who in his book how to make money in stocks says that if you're a typical working person or a starting investor you should know that it doesn't take a lot of money to start you can begin with as little as five hundred to a thousand dollars and add to it as you earn and save more the money you also don't need to know every

a single thing or even a lot about the 

stock market to start investing there are a number of passive investment options that permit you to set it and forget it and literally make your money

in your sleep

5. store it in retirement accounts 

retirement accounts such as 401ks and

IRAs 

are investment accounts that translate to your savings are invested in the market and have the potential to multiply

exponentially getting the 401k 

is vital you need to save as much as you can so as to have money work for your tax efficiently

and to get your funds in the market says 

Gould the first bucket outside of the emergency fund is the 401k up to the match that that's if your employer provides one giving money away isn't something that you want to do he further explains that after it would be wise to place your money either in an ira or a Roth ira another the way that many don't think about is the has which are savings accounts that are only eligible to those with a high deductible health insurance coverage one perk of storing money away in a has is that you don't lose it and whenever you have health care costs you can easily take out the cash and not have to pay taxes on it and on your 65th birthday it morphs into an ira and you don't get fined for other costs you can even pay medicare costs and long-term care premiums

  6. become a silent partner in a business 

building your own business from the ground up can be a risky move but if all goes well you'll certainly reap the benefits another route to take that pays off without the stress that comes in a new startup is to become a silent partner who invests funds but doesn't get involved in any of the day-to-day of running the business of course, this prospect comes with certain pros and cons you won't have a say in how the company is run or the daily decisions that active employees make but on the upside, you'll earn a portion of any profits the business makes without putting in any long hours although you still run the risk of a financial loss if the venture flops are careful not to sink your hard-earned money into a business that's going to tank

to reduce this risk ensure that you do

your own research 

ask to see financial records projections

and business plans 

you might be required to sign an NDA but you'll see that it's worth it you might also want to get a lawyer

involved to ensure you're protected if 

the business gets sued or becomes bankrupt or any other legal issue

  7. invest in real estate if there's 

anything that recent history has taught us it's that housing isn't a guaranteed investment that being said if you have the required cost and risk tolerance investing in residential or commercial real estate might suit you investing in real estate is double-edged you could make buying a single home

to live in to be an investment or you 

could invest beyond your home into the land to sell or stores or homes to run out one thing to note is that branching out past your own home depends on your market and the demand for rental and

real estate 

in most markets, if you can tolerate the headaches and there's room it's an option but in the spirit of diversifying your assets bear in mind that many homeowners already consider real estate to take up most of their portfolio and caution people seeking to invest in real estate to be wary of weighting their portfolios too heavily

towards one kind of asset eight choose 

credit cards with rewards you'll use using a credit card might not seem like putting your money to work but choosing a card with rewards that are fit for your lifestyle means that every buck you spend on your card is doing double duty nobody likes debt but if you have the cash flow and predictability in your budget and you can dutifully pay off your bill at the end of the month there are many credit cards out there you could choose from however if you have credit card debt this would not be the right move for you the secret behind making your money work with your cards is being in the position to pay off your bill in full every month nine pursue a professional degree or certification another way your money can work for you is by elevating your worth on the job market if you have time and money to invest in furthering your education you have the potential of making yourself more marketable to earn a

higher salary 

that doesn't only mean pouring hundreds of thousands of dollars into grad school making yourself more marketable as an employee or professional might be a simple workshop to work on your public speaking or even taking a class to be a pro at Microsoft excel if you're looking to broaden your skillset but money is an issue there are loads of free courses available online

  10. pay down debt most of us deal with 

some form of debt at some point in our lives be it credit cards student debt or other loans and while owing money might just be a part of life the sooner you can get rid of it the sooner you can have a handle on your finances think of it this way every dollar you use to reduce your principal saves you from having to pay interest on that amount and that can mean being free from debts years earlier than you expected if you made 3 minimum repayments only on a credit card debt of five thousand dollars with an 18 Apr, for example, it would take you more than 12 years to pay it off and you'd end up paying back over nine thousand dollars instead

however, if you increased your monthly 

payments by maybe a hundred dollars you'd end up clearing off your debt in

just under two years and pay backless 

then six thousand dollars 

so basically paying down debt faster equals guaranteed returns in your bank account over the long run, in conclusion, there are several ways in which you can leverage your money

and time to make extra cash or a 

fortune for yourself

 but the key is finding a system that 

works for you.