We all work hard for our money. It only seems fair that your money pulls some of its own weight, doesn’t it? Getting the most out of your money can feel like a complicated process. Many people aren’t sure where to start. You can get some direction on how to put your money to work for you right here.
Let’s go over some ways to get more from your money, starting with the easiest options:
Set Up the Right Kind of Savings Account
You have to save your money somewhere. Stashing it under the bed won’t earn you any extra funds, and neither will putting it in most savings accounts, which typically offer an interest rate of around 0.01%. Fortunately, you can put your money to work right away by placing it in a high-yield savings account, or even a high-yield checking account.
Make sure you pick an account that is FDIC-insured. High-yield accounts may offer you a 1% interest rate, which likely won’t skyrocket your funds, but it’s a good way to start getting more from your money. You can find high-yield accounts at many online banks.
Pick the Credit Cards that Work for You
You have many options out there when it comes time to pick a credit card. Most cards these days come with a list of possible rewards, and not all of these benefits are created equally. Make sure that you select a card that offers you benefits that you actually want.
Most of us use credit cards regularly, after all. If you’re going to be spending money on your card anyway, it ought to work for you. You could get points to put towards your bills, rewards for airlines, and many other benefits.
Make Sure You Invest Wisely
Savings accounts aren’t the only form of investment available to you. You can also put your money to work by investing in retirement accounts or the open market. You might be able to store your funds in a:
- 401k
- IRA
- Roth IRA
- HSA
You can pick a number of different investments in the stock market. It’s important to keep variety in your investments, in case one takes a hit that could hurt your bottom line. Try investing in index funds.
Check out this beginner’s guide to investment strategies.
Infographic provided by Institutional Advisory Services Group
Get Involved in a Business
Opening a business of your own can be far more work for you than for your money. Fortunately, you can get some of the rewards of business ownership by acting as a silent partner. If you back a business owner, forming a silent partnership, you can get passive income back from your investment without any further effort on your part.
Look into Real Estate
If you’re ready to get very involved in the investment process, you can put your money to work by buying property. Both commercial and residential real estate properties can offer you a huge return on your investment.
However, real estate investment can be risky. The market has its ups and downs, and it’s generally not a good idea to focus solely on your real estate assets. Spreading your money around can increase the stability of your investment portfolio.
Consider Other Forms of Investment
Some investors prefer to use vehicles as a form of investment. You may purchase and resell vintage cars or motorcycles as a way to make your money work for you. Many vehicles increase greatly in value, especially if they are collector’s items. You can also use a vehicle to get a title loan, if you happen to need emergency funds for any reason.
Making your money work for you can be as simple as selecting the right savings account, or as involved as entering the real-estate market. You can pick the strategy that works for you to get the most out of your money, starting today.
