It may not buy you happiness, but having money is useful for just about everything else. But making more money is easier said than done. Most get-rich-quick schemes are a sham, and there aren’t many magic money trees around to shake, but there are other ways to grow your wealth and make your money work for you. Whether you’re a seasoned entrepreneur, a stock market rookie, or someone who simply wants to boost their income, the following tips will fatten your wallet. Let’s take a look at how.
- Making money
It may seem obvious, but before you get around to saving or investing money, you have to have some of the stuff, to begin with. Once you cover your living costs you’ll be able to budget for growing wealth, so you need to earn enough to (comfortably) do that.
- Income
Most people work for money. Whether you earn a regular wage or you’re always hustling for freelance work, this is known as ‘earned income’. We all want to earn as much money as possible from our jobs, and if you feel you’re at a dead end it might be time to change your career path, based on what you enjoy or what you’re good at, and of course, how bankable those things are. Another source of money is ‘passive income’. These are funds derived from things like stock market investments, renting a space, etc. You’re unlikely to have any passive income until you’ve grown your wealth enough to make some investments.
You can boost your earned income by starting a side hustle – this is becoming a more popular option as we find ourselves more than ever in a gig economy, as companies are always looking to outsource work to individuals via sites such as Upwork and Fiverr. Freelance work can give your income a real shot in the arm while using your existing skill set. But a side hustle can also be fun – many people use their hobbies to make money – just look at all the arts and crafts on Etsy. If you love to do it in your spare time and can monetise it, why not?
- Budget and planning
If you’re serious about building wealth you will require a lot of preparation, and many seek the advice of professional financial planners. They will help you assess your current situation, offer advice on how to increase income and make successful investments, as well as a retirement plan. It depends on your goals and your lifestyle. Part of that process is realistic budgeting.
It’s easy to make a simple budget for day-to-day life, but much harder to stick to it. But you will be creating a budget with a purpose: to determine how much money you can invest for growth. Creating the budget should tell you whether or not you’re living within your means – could you be saving more than you are? If you can cut spending here and there – perhaps limiting nights out to one day at the weekend rather than two, or bringing your lunch to work, this frees up funds that can be used to grow your wealth, in the slightly longer term.
- Track spending
As well as your budget you must run a tight ship when it comes to your finances. That means actively tracking how much you’re spending, and on what, as you go along. No need to wait for a monthly bank statement to hit your doormat – those days are long gone. Online banking is now the norm, and with almost every banking service offering a dedicated mobile app, keeping an eye on the ebb and flow of your balance(s) is as easy as can be. And many financial mobile apps also offer tracking and analysis features, making it even simpler to stay on top of things and make sure bills are paid on time.
- Investing
Now that you’ve set aside some of your money you can begin to invest. Again, you probably need some advice and help along the way if you’re new to the process. There are many ways to invest, such as stocks, forex (foreign exchange trading), and cryptocurrency. If you’re buying individual stocks it is prudent to understand the nature of the company you’re investing in and work out how long-term your plans are. There are different routes to investment, so take your time to find the right one for you.
- Property
Usually considered the safest investment – property is much less likely to devalue than other assets – buying, renting, and trading property is a surefire way to grow your wealth. As a landlord your rental price should match or exceed your monthly mortgage payments – the property ends up paying for itself. Whether you aim to become a landlord of various spaces, or you want a safe investment for yourself or your family, this is one of the best ways to go.
Growing wealth doesn’t mean overnight success. It is a process, where little steps add up into big strides towards success and prosperity.