Start Now And Put Your Money To Work!
The idea of making money off of your money isn’t new. It’s something that most of us want to do, but for so many seems like an impossible dream. Nothing could be farther from the truth. There are many ways to put your money to work for you and they don’t all require a large bank balance to start.
Here are a couple of ideas that anyone can put into place to start earning extra income right away from the money you already have!
Open a high-yield savings account
Sean Gould, a wealth strategist with Waddell and Associates and a certified financial planner, explains that before sending your money off to do the heavy lifting, you’ll want to have an emergency savings account of about six months of living expenses stored in cash.
A smart place to keep it is in an FDIC-insured high-yield checking or savings account, where it can generate more value as it waits.
A typical savings account offers an interest rate around 0.01%, and a typical checking account is the digital equivalent of putting your money under the mattress. However, high-yield checking and saving offer interest rates that exceed 1% — 100 times what you’d get otherwise.
These accounts are usually available at online banks, which keep costs down by forgoing brick and mortar locations. NerdWallet provides comprehensive lists of high-yield checking and high-yield savings…
…Choose credit cards with rewards you’ll actually use
Using a credit card might not feel like putting your money to work, but choosing a card with rewards appropriate for your lifestyle (read: airline miles cards aren’t great for people uninterested in travel) means each dollar you spend on your cards is doing double duty.
“As a financial planner, we don’t like debt, but if you have the cash flow and predictability in your budget and you can pay off your bill every month, there are great credit cards out there,” says Gould…
…If you have credit card debt, this strategy isn’t for you — the key to making your money work with your cards is being able to pay off your bill in full every month. – Business Insider
Think Expansion With Your Investments
With a budget well suited for you in place, an emergency fund available and ready when you need it, and automatic funds going to retirement savings each month what else can you do to make your money work for you?
There are always new ways of putting your available capital to work. Here is one way to do that since you have your bases covered on the basics.
Contact Your Retirement Fund Provider and Expand Your Portfolio
Talking to your investment firm about what to do with the extra money in your budget implies you want to put it somewhere it can grow and make more money for you, as opposed to save it for a specific goal. A good place to start is with the investment firm that holds your 401(k) or IRA, like Fidelity Investments or Vanguard.
Even if you’re in a group retirement plan with your company, you can contact them about expanding your portfolio to include personal investments. It’s worth noting that depending on the funds you want to invest in, you may have to front a certain amount of money just to get started, but if you have it, use it. Give the firm you have your retirement funds with a ring—they may just suggest you add the extra money to the funds you’re already in, but others will be more than happy to help you open new lines of investments, and offer you some financial guidance to help you make the smart choices as well. – LifeHacker
How many ways do you put your money to work for you?