Money / Financial Planning
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If you’re in the fortunate position to have a bit of extra income that isn’t earmarked for expenses and you’re wondering what to do with it, there are a number of options to grow your money. Financial experts explain the 10 smartest ways to make your money work for you.
Options: 13 Ways To Invest That Don’t Involve the Stock Market
Quick Tips: 7 Fastest Ways To Save $20K, According to Experts
Automate your finances
In this digital age, it’s now incredibly easy to automate your finances in just about every way you can imagine, from automatic bill payments, to automatic investment contributions, according to Kenny Senour, certified financial planner with Millennial Wealth Management.
“For example, if your goal is to max out your Roth IRA in 2022 by contributing the full $6,000, consider setting up an automatic contribution of $500 each month,” he said. “Automating your finances can be a huge help in managing your monthly cash flow, so any automation should ideally occur the same day your paycheck or direct deposit hits your bank account.”
Create specific financial goals
You can’t make your money work for you if you don’t know where it’s going. According to Jake Hill, CEO of DebtHammer, you should “create specific financial goals.”
“Maybe you want to earn a certain amount through a side hustle or you want to invest a certain amount in real estate — whatever it may be, work toward it. Make sure that your financial goals are ones that will adequately benefit you down the road, and preferably choose goals that will benefit you consistently, like setting up passive income.”
More on This: How To Set Career and Financial Goals You’ll Actually Achieve
Plan for Each Dollar
To make your money work for you, have a plan for each dollar that comes in.
“Money without a purpose ends up being spent, so give some thought to what your goals are and how you should divide your income between them,” said Nick Bormann, financial planner at Bormann Wealth Management LLC.
He added that mindfulness about your money is key to financial success, which means “making conscious choices about where to spend, what types of accounts to use and what your highest priorities are.”
Get Rid of Your High-Cost Debt
You can’t grow wealth into the future if debt is holding you back, said Christopher Sioco, COO of Parachor Consulting.
“High-cost debt kills long-term wealth,” he said, pointing out that credit cards typically have interest charges as high as 35% per year …….