Whether you have a little bit of money, or a lot of money, we want our money to work for us. Using what we have to the absolute maximum is a must. We need to look at our finances and discover ways to make what we have, help us live the life we desire. Let's have a look at how to make your money work for you.
Start A Budget
Firstly, you need to make a budget. Not only make it, but stick to it. Sticking to it is perhaps the hardest thing. Giving yourself an amount that you can spend each month is difficult. There are ways to help you stick to it, including leaving your bank cards at home and only taking cash. it's all too easy to beep your contactless card. If you don't have the money to spend, you won't spend it. When you know how much you have coming in every month and how much you usually spend on living, you'll have the information of how much you have left over. You can then put this money to work for you.
Pay Off Your Debt
If you are in debt, this is probably adding more debt thought interest, every month. Making minimum payments doesn't help you clear your debt. Moving your debt to a 0% balance transfer card can help you to clear what you owe. The 0% interest doesn't last forever, maybe 6 months, some offer longer up to 18 months. This gives you time to focus on actually paying the debt, not the interest. Getting rid of this is a huge stress relief off your shoulders and massive way to improve how your money actually works for you. When you don't have debts mounting up more money owed every day, you are look at how to make your money work for you. Clear those debts.
Maximise Your Savings
How much can you save every month? Whatever the figure is that you can put away as savings is irrelevant. It's about making the most of where you can save, which will make your money work for you. This could be knowing that your ISA limit is £20,000. Maybe even knowing how much you can overpay your mortgage every year, because the interest that you will save by clearing your mortgage earlier can be seen as savings. If your savings account is only giving you 0.5% interest, find somewhere better for your savings. Keep an eye on where your money is and the interest rates that you are getting from those savings.
Invest In Your Future
Next on our list of how to make your money work for you is investing in your future. This includes pensions. Do you know where yours are and how often do you pay into them? What are they worth? How about looking into investing as well? Life passes us by pretty quickly and if you get to retirement age without having planned for it, you might find yourself struggling. Investing in your future is important. Remember, investments can go down as well as up. What do you know about pensions?
Consider Passive Income Streams
If you'd like to earn money whilst you're out and about doing other things, consider passive income streams. These are things that you put the time and effort into once, and they continue to earn you money over and over again. Even when you sleep! Simple ideas of this include writing a courses, or an e-Book, creating a video course or starting a print on demand shop.
When you know how to make your money work for you you start to see your finances in a different way. Be hands on with them, even if you're in debt! You could soon see your finances flourish and that comfortable life you wanted arrive.
