Money can be a very slippery substance and if you don’t know what to do with it, someone else will. It takes decisive action to fight the urge to become a slave to money and eventually make money work for you. Here are some crucial steps to making money work for you.
The old saying “a penny saved is a penny earned” is no less true today as it was back in Benjamin Franklin’s day. That means that if you really want to keep a hold of your finances, you really need to make sure that you are spending everything the second you get an extra dollar. It takes proper planning and good strategic thinking to really minimize your expenses. Resourcefulness is a major thing to think about because when we are talking about minimizing your expenses we aren’t suggesting that you go without completely, but that you are using what you have to supplement some of those additional expenses. This can be an affordable way to go about things.
Keep at least 10%
As a rule of thumb, make sure that you are keeping at least 10% of your earnings. There are so many people that just live for the here and the now. This is great if you want to be like the grasshopper that never saved up for the winter. If you are industrious and are willing to save a little here and there, you will be much better off in the end. Not only will you be better off, but you will also be in a better position to help the people that you love.
When you have a steady cash flow and good savings it is time to start thinking about passive income. This is where money is generated from sources that may take a little capital to start but will continue to build up over time to create a stream of income in the long run. Stocks and Bonds are good examples and so are properties that you rent out. These will help you build on that income.
Increase your salary
Whether it means that you step up your game so you can get that raise, or just making adjustments so that you can have a side business to bring in a little extra money on the side, it is a good idea to increase your salary. When you go asking for a raise, make sure that you are adding value to the company overall. There are a lot of ways that can approach your boss to make sure that you secure that raise in the end, but one of the most effective is to come up with a game plan so you are progressing towards a goal and you can clearly state that there has been value added.
It is all about you in the end. It takes an individual who is ready to take responsibility and initiative in order to make money work for them. If you follow these simple steps, you will find that you are in a much better position to have money on your side!