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Have you ever calculated your budget and found some extra money? Believe it or not, that can happen to you. When you check your financial plan for the week or month, there might be times when you have some additional cash. For example, you might have secured everything you need to renovate the house, and then you find $1200 still ready for use. So, how would you use it?
Are you someone who’s only started venturing into a new career or field of expertise? Or are you someone who’s in the prime of their life and making the most of each opportunity? Either way, you might think that retirement is going to happen in the distant future. However, even if it takes 30 years to get there, investing on a retirement plan now can make your life easier.
You see, a study from the NIRS revealed that 95% of millennials who don’t save for retirement get stuck with three habits:
In each of these habits, the millennials had to sacrifice their happiness or satisfaction to make ends meet. You wouldn’t want to be someone who can’t enjoy or pursue retirement. Whether you plan to continue working or not, you should have the financial freedom to choose. If you want that to happen, consider using that extra money to make your money grow.
To make it easier, examine what kind of retirement plan options you can try out. You might have a company-sponsored retirement plan that you can use. You could also try a Roth IRA for yourself. By sending more money for your retirement plan, you can enjoy your post-career life without having to worry about its costs.
Retirement may be far ahead in the future, but life isn’t a series of guarantees. Sometimes, when we least expect it, disaster strikes. If that happens, do you have enough resources or measures to keep your family safe? Do you have any way of helping them stay afloat once you’re gone? If not, then it’s time to consider life insurance.
For many people, life insurance feels unnecessary or costly. However, studies show that 84% of millennials are underinsured. What happens if they get in an accident? Imagine the financial burdens your own family might go through if you get into one. Paying life insurance can help them have enough cash to protect themselves. They can cover their essential costs and afford what they need to survive.
In addition, if you want to make your money grow, don’t be cheap on your insurance plans. Many people think that paying the minimum is all you need to do. However, if an emergency does happen, paying the minimum won’t be enough. If you want to ensure a better life for your family, then adding more to your life insurance fees can help them in the long run. It’s better to be safe than to be sorry, after all.
When you have extra cash, a good way to make your money grow is to invest it. Ideally, you should build a diverse portfolio of different investments. One reason why is that a diverse portfolio keeps you from having “all your eggs in one basket”. For example, a stockbroker who has invested in multiple shares will be safer than a stockbroker who puts all their money into the shares of one company.
Another reason to invest in different things is to experiment with what works and what doesn’t. While you can read all the articles in the world, the true test only begins when you start investing. Crypto can seem scary but if you have enough funds, you could try it out and see if it’s worth the risk. Just remember that when it comes to investing, always check on your tolerance level. That way, you can know if a certain option is a good idea or a bad choice for your finances.
Have you been told that buying a house is the best investment? Many people want to own a house, but that doesn’t mean they should buy it so soon. An article by Hilary Fowler revealed that over 80% of millennials got buyer’s remorse because they didn’t assess their tolerance before buying a house; consequently, many of them felt that they overpaid for it.
If you want to own a house or get into real estate, your extra money can definitely help. It can add to your funds and help you find the ideal place to live. It can also help you build your investments and grow your portfolio over time. However, remember that you need to research first and see if it fits you. Otherwise, you won’t be able to make your money grow effectively.
A backup budget is a good way to help you plan ahead for emergencies. Even if you don’t suffer a car accident or a housefire, you can’t say that they aren’t real risks. In the last few years, you’ve already seen a pandemic break out and inflation rates rise higher than ever. It’s better to be prepared, and with extra money, you can do that.
Remember that a backup budget should cover up to six months’ worth of your expenses. That means covering your food, mortgage, utilities, and other important costs. Erika Giovanetti of Fox Business once stated that most Americans do have emergency funds, but only forty-five percent have enough to last for six months. In that timeline, you might need to provide for yourself and your loved ones while looking for a job or paying any emergency bills. So, to make your money grow, be ready for any emergency and for what it could cost.
If you want to make your money grow, use that extra cash on yourself. No, I’m not talking about buying a fancy watch or eating at a lavish hotel. What I mean is that you take that extra money and invest in your skills and your knowledge. Learning new things can help you grow your finances and expand your options.
For example, if you’re interested in selling plants or pastries, why not take the time to learn about marketing? You can take classes online through platforms like Skillshare or Masterclass. You can also look up videos online and buy books about starting your own business. You could do the same for other concerns in your life, such as stock market trade or real estate. What matters is that you invest in your future. That way, you can make your money grow and find the lifestyle you’ve always wanted.
While you can luck out with extra money on a budget or a bonus, you might want to get more. The good news is that you can find different ways to build your finances. Here are three ways that you can earn extra money in your life.
Side hustles are becoming more and more popular in today’s world. A survey by LendingTree revealed that 44% of Americans own a side hustle of their own. Many of these people have said that they wanted a side hustle to pay their bills or to grow their income.
You could also consider exploring a side hustle of your own. If you have enough time, you can dedicate yourself to starting a new business or venture. For instance, you might notice that many people in the neighborhood like your homemade pastries or coffee. You can use this interest to start a side business of selling your baked goods. This way, you can make your money grow with extra earnings and still keep your job.
Here are some other side hustle ideas you can consider:
Another way to make your money grow is by asking for a raise at your job. I’ve already written about finding out if you’re being paid well and how you can bargain for a better salary. To keep it short, it’s important that you earn as much money as you work for. If you spend more time or get more responsibilities on the job, it could be time to ask for a raise.
Of course, you can’t simply ask for a raise whenever you want. It’s important that you learn to negotiate and convince your bosses of your hardwork. You need to show them that you have the initiative to work harder. It’s not just about submitting the quota; it’s also about how you spend your time, how you help the office, and how you contribute to the team. Once they see that, they should be willing to give you a boost in your salary.
Lastly, the best way to make your money grow and earn more is through investment. Diverting your cash into life insurance or retirement plans is like paying your future yourself; through investment, you use your money to ensure a better future for you and your family.
One important thing to remember is that you should always research the kind of investment you want to make. For example, owning a house sounds good but it also requires mortgaging, utilities, and other expenses to gain. You might not have the funds yet to afford all that.
In addition, you need to check if your current lifestyle would need a house, rather than getting one for the bragging rights. You might still be trying to establish your career, so a house would only add to your expenses. Remember, if you want to make your money grow, focus on what’s right for you. Once you see that, you can start to find the right investments to make.
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