How to Make Your Money Work For You to Grow Wealth
Updated: May 10, 2022
The last time the global inflation rates were as high as they were in 2021 was four decades ago. It’s no secret that money loses value when lying idle – but now, it’s happening faster than ever before. Luckily, there’s one way to fight this: learn how to make your money work for you so it can outrun inflation!
According to statistics, the two years of quarantines and lockdowns were not all that bad: millions of people around the world were able to save more money than they typically do. It’s hardly a surprise: we barely traveled, we didn’t organize or visit lavish events and even spent less on clothing since we weren’t leaving the house anyway. Don’t let these savings lie unused – use them to grow your wealth and ensure your financial stability!
Open a savings account with high interest rates
This one’s a no-brainer, right? You need to keep your savings somewhere safe anyway – so make sure you get the best deal out of it. Research different banks and choose the one that offers the best option for a high-yield savings account. This way, you’ll be making some free money without actively doing anything! Of course, you won’t make loads of it, so it’s far from the best way to reach ambitious financial goals – and yet, it’s free of effort and risk.
Be smart about credit cards
The importance of using credit cards differs from country to country: in some places, they’re not really common, but in the US, it’s an absolute must for building a good credit score. Don’t just get the first credit card you hear about: compare the offers from different companies and go for one that offers rewards, such as air miles or cashback.
You’ll be spending money anyway – so why not see how to make your money work for you, too?
Prioritize paying your debts off
If you have any debt or a mortgage, it might be hurting your personal finance a lot more than inflation. This is especially true for American student loans with interest rates that keep growing every year!
Whenever possible, try to put in the extra money you save into paying off your debts in advance so you could avoid overpaying on the interest. The sooner you’re free from those overbearing bills, the sooner you can save enough money to start looking at ways to make your money work for you instead of simply getting by!
Invest in real estate
Some people believe all real estate owners are millionaires with dozens of expensive properties – but it couldn’t be further from the truth. You wouldn’t believe how many people have bought cheap houses or flats and fixed them in their free time, only to sell them for a much higher value.
Looking into how to make your money work for you because you’d love to join the FIRE movement? You can turn fixer-uppers into rental properties and guarantee yourself passive income for now and a retirement fund for later!
Invest your savings into a side hustle
Freelancing and side hustles are getting more popular every year – and typically, the fields that require some initial investment are less competitive than those that don't. Instead of looking into how to make your money work for you, why not invest what you have in your savings account into something that will soon pay off and start earning you passive income? Here are a few ideas for investments of various sizes:
Buy a powerful steam cleaner and offer the service of cleaning carpets and mattresses
Get a vending machine or a few – operating them can become lucrative quickly!
If you can offer programming, web design, or similar services – invest in online ads
Get trained in providing niche services in pricey markets, such as wedding planning
Invest in crypto or stock market
This is certainly one of the best-known ways to earn passive income! However, this doesn’t mean you should follow it blindly: investing can bring you very high profits, but it’s also inseparable from risks. Whether you decide to go for crypto or the more traditional stock market, don’t put in everything you have in your bank account.
Think realistically: what amount of money could you afford to lose if worse comes to worst? FIY – most finance professionals recommend starting with 10–15% of your gross income!
Look into mutual funds
If you’d like to invest in stocks or other assets, but you feel like your savings are too low to even begin, try mutual funds. It’s basically a group investment that’s made by more than one shareholder, which allows each of them to have shares in portfolios of a higher profile.
Choosing this type of investment lowers the level of risk, and that’s definitely important when looking at how to make your money work for you – especially when your final goal is to not just build wealth but also grow your retirement fund or save for your future kids’ college education.
Now that you know how to make your money work for you… Would you like to know how you can employ your devices, too?
With Honeygain, you can earn passive income effortlessly by simply leaving the app to run on a computer, tablet, or smartphone with a stable internet connection. Setting up takes minutes – and once you’re done, Honeygain does all the work for you!