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8 Efficient, GUARANTEED Ways To Make Your Money Work For You.
Everyone knows the best way to make money is to let your money work for you.
But what does that actually mean?
How can you make it happen?
And how much money do you need before you can get it to work for you?
If you want to know the answers to these questions and a whole lot more, keep reading.
We're going to show you how to make your money work for you… guaranteed.
Let's get started.
1. Talk To Someone With A Successful Financial History
No matter what your financial situation looks like, the first thing you should do is identify someone who has done well with their finances and spend some time asking questions.
It's possible a financial planner might fit the bill here, but the reality is that financial planners are not incentivized to give you good financial advice, and while some take their fiduciary duty seriously and will point you in the right direction, many will give you poor advice in an attempt to make money off of you.
You will learn a lot more by talking with someone in your network who has done well for themselves and is willing to break down what they did to get there. They can help you identify realistic financial goals and put strategies in place to achieve them.
Before you meet with this person, do your homework and think through what you want to get out of your meeting. Is it something specific, like choosing investments or developing a budget? Or are you after a more comprehensive financial plan? Think through questions to ask in the following areas:
Identifying short, medium and long-term goals
Developing strategies to achieve your financial goals
Budgeting and managing your money
Developing an investment plan
Choosing tax-effective investments
Retirement planning and making the most out of your 401k
Working out your insurance needs
Considering your estate planning needs
When you reach out to this person, let them know that you admire how smart they have been with their finances and ask them if you can buy them lunch and ask a few questions. Tell them you are wanting to be responsible with your finances and would love their advice.
You might be surprised at how receptive these types of people are to an inquiry like this, and you will be even more surprised at how much you'll learn from just 30-60 minutes of conversation with them.
2. Develop A Budget
It's something we've all heard a million times before, but how many of us actually have, and stick to, a personal budget? If you're guilty of being in the dark about your incomings and outgoings, putting together a budget is one of the best ways to start taking control of your finances.
In a nutshell, a budget shows you if you are spending more or less than you can afford. It also helps you direct your money to where it matters most, so you can stay on top of bills, pay down debt and start putting money towards your future goals.
What should I include in my budget?
Your budget should summarize all your living expenses, so you can compare your total spend against your take-home pay, cut out or reduce any unnecessary expenses and figure out a reasonable savings plan. Typical expenses to consider include:
Fixed expenses
Rent or mortgage repayments
Phone and internet
Childcare costs
Insurance
Vehicle registration
Debt repayments
Variable expenses
Utilities like electricity and gas
Food and groceries
Medical costs
Vehicle running costs and transport
Education expenses
Discretionary expenses
Entertainment
Eating out
Shopping
Sports and recreation
Personal care items
There's a wide range of free budget planning tools online, and apps like Mint and You Need A Budget make it easy to track your spending at any time. Otherwise, you can kick it old school with a simple spreadsheet.
3. Open A High-Yield Savings Account
In an ideal world, you'd have an emergency savings account...
But what does that actually mean?
How can you make it happen?
And how much money do you need before you can get it to work for you?
If you want to know the answers to these questions and a whole lot more, keep reading.
We're going to show you how to make your money work for you… guaranteed.
Let's get started.
1. Talk To Someone With A Successful Financial History
No matter what your financial situation looks like, the first thing you should do is identify someone who has done well with their finances and spend some time asking questions.
It's possible a financial planner might fit the bill here, but the reality is that financial planners are not incentivized to give you good financial advice, and while some take their fiduciary duty seriously and will point you in the right direction, many will give you poor advice in an attempt to make money off of you.
You will learn a lot more by talking with someone in your network who has done well for themselves and is willing to break down what they did to get there. They can help you identify realistic financial goals and put strategies in place to achieve them.
Before you meet with this person, do your homework and think through what you want to get out of your meeting. Is it something specific, like choosing investments or developing a budget? Or are you after a more comprehensive financial plan? Think through questions to ask in the following areas:
Identifying short, medium and long-term goals
Developing strategies to achieve your financial goals
Budgeting and managing your money
Developing an investment plan
Choosing tax-effective investments
Retirement planning and making the most out of your 401k
Working out your insurance needs
Considering your estate planning needs
When you reach out to this person, let them know that you admire how smart they have been with their finances and ask them if you can buy them lunch and ask a few questions. Tell them you are wanting to be responsible with your finances and would love their advice.
You might be surprised at how receptive these types of people are to an inquiry like this, and you will be even more surprised at how much you'll learn from just 30-60 minutes of conversation with them.
2. Develop A Budget
It's something we've all heard a million times before, but how many of us actually have, and stick to, a personal budget? If you're guilty of being in the dark about your incomings and outgoings, putting together a budget is one of the best ways to start taking control of your finances.
In a nutshell, a budget shows you if you are spending more or less than you can afford. It also helps you direct your money to where it matters most, so you can stay on top of bills, pay down debt and start putting money towards your future goals.
What should I include in my budget?
Your budget should summarize all your living expenses, so you can compare your total spend against your take-home pay, cut out or reduce any unnecessary expenses and figure out a reasonable savings plan. Typical expenses to consider include:
Fixed expenses
Rent or mortgage repayments
Phone and internet
Childcare costs
Insurance
Vehicle registration
Debt repayments
Variable expenses
Utilities like electricity and gas
Food and groceries
Medical costs
Vehicle running costs and transport
Education expenses
Discretionary expenses
Entertainment
Eating out
Shopping
Sports and recreation
Personal care items
There's a wide range of free budget planning tools online, and apps like Mint and You Need A Budget make it easy to track your spending at any time. Otherwise, you can kick it old school with a simple spreadsheet.
3. Open A High-Yield Savings Account
In an ideal world, you'd have an emergency savings account...
