4 tips to see your money grow
20 Apr 2021
It’s tough to make your money grow if you’re not an entrepreneur or a business owner. There’s not much else you can do except work longer hours to get a higher income. You’ve got to save a lot of money from your income to be able to afford that holiday you’ve been wanting. Despite these being sentences often told to you, it’s not the case. You don’t need to have a high-earning job to save money or see your finances prosper. What you need, is the right approach. In addition, you don’t need to have a background in finance to achieve such a goal either. Let’s have a look at some tips that you could follow to help your wallet grow.
Track your finances
Seeing your money grow is all about being careful. This doesn’t mean that you always opt for a cheaper version of the product you want, but simply keeping in mind what you are spending your money on. If you can save some of that money and put it aside, you’ll see a better result. Learn more on how to better your budget as despite of what many people think, saving money isn’t that difficult. This is about planning on what you’ll be spending your money on, deciding on whether you can do without a particular item or brand and being honest with yourself. If you bought something extra, list it on your expenses list. Don’t let it slide. It’s better to have an accurate and true plan that works rather than an inaccurate one that will have little impact. If you worry about overspending, you can choose to work with apps that will limit your spending. This will not only help you know where you stand financially but will also shed a light on how close you are to reaching your goals.
Settle your debt
Whether it is a mortgage, a car loan or a student loan, debt will hinder your finances from growing. We’re not saying that you shouldn’t borrow money – there’s a difference between good debt and bad debt. Good debt is when you borrow money for something that will be rewarding in the long run. On the other hand, bad debt is that money you owe from being careless – things that you don’t need. If you’re looking to save money, it’s best to settle all your debt first. This will help avoid a slower and less impactful progress on your money saving. Let’s take an example: you earn £1,500 eery month and you need to pay £400 monthly. Therefore, you’ll have money to save every month and live comfortably.
Investments tend to scare people, especially if they don’t have any experience doing so. You shouldn’t worry though – investing is all about being smart and disciplined. There are many markets which you can start investing in: property, currencies, crypto, etc. and you can start by researching well on the market, see what seems to be good and rewarding and make your investment. No matter how small your investment is, it can have a bigger outcome. Before making a decision to invest, ask yourself: do you have the extra money? If not, investing isn’t the best idea at the moment. You need to ensure that the investment will help secure a better financial future but not worsen your current life. If you’re looking to invest in stocks, then you should know that that investment isn’t for a couple of months, but years. Don’t worry about any uncertainties either – you can always contact a financial adviser or use some quality apps to help guide you in making the best investments in the current market. You can look to invest in crypto or structured notes.
Don’t start thinking about your savings and money late on. The earlier you start, the greater the results will be! Let’s say that you’ll be putting aside a small amount from every pay cheque you receive – you’ll have saved a lot more money if you’d have started thinking long-term at a younger age. Why will this be helpful? Well, one major reason is retirement. In order to have a relaxing retirement period, you will need to have thought about it beforehand and planned it out well. When doing so, consider your age and the age when you plan to retire. Think of your income sources and any other income that you’ll be receiving, whilst keeping any planned expenses in mind too. Moreover, saving money early will be benefitting if you invest that money early, simply because it will have been invested for a longer period of time. This will lead to the total sum growing because of compound interest, interest on the investment made to help the money grow. Sure, the amount gained from such an interest is not much, but when all the little amounts from all over the years are put all together, you’ll notice that the investment was worth it.