financialtreat – will explain about Let’s Know 7 Easy Ways to Make Money Work For You which you will get in the following article. let’s look at this article carefully!
Money is a commodity that is often a symbol of one’s success in life. Every day, millions of people work for money to achieve their dreams. Often a person sacrifices time, thought, and energy to get more money in order to meet the needs in his life. Therefore there are several ways you can make money work for you.
However, the actual success of a person is not seen from how much income is obtained, but how effectively we can manage the money. The mindset that develops in the people is that when we work hard, the more money we get.
Come On, Know 7 Easy Ways to Make Money Work For You
But there are also many people who feel that they have worked hard to go home in the morning and come home late at night, looking for overtime, especially when they go on holidays to earn more money, but the assets or money they have are still not growing.
After that, what is wrong with the people’s frame of mind so far? Therefore we must change our mindset so that we are not always enslaved by money and how to make money work for you is what we must apply now. If we work hard to earn money, it means that we are only working for money. And that’s the mindset that should be changed.
People are busy spending their income on necessities and lifestyle. Moreover, the lifestyle that is always prioritized, eh even there is no remaining funds that can be saved or invested. So it is not surprising that we have worked as hard as possible and no matter how much money we made but still have no assets.
Assets themselves do not mean the goods we have, but assets are things that can make money in the future. Can money make money? You can do it. By turning the money we have into assets. Because only relying on active income is not enough, now we have to start recognizing and pursuing passive income.
We can get passive income by investing the money we have earned (Active income) from the results of our work into real assets such as investment for business capital, buying exclusive franchises, renting out houses or apartments. For some business people or investors, the development of money due to compound interest makes sense when describing the phrase “Let money work for you”.
If you keep money long term, it will not look really big at the beginning of the period, but over time it will grow faster and faster. This method allows people who save a lot of money when they are young and feel very rich when they are older.
But don’t just expect from investments with high returns, such as saving with a compound interest system. Before making money work for you, then you must know the amount of your net worth. Net worth is the sum of all your assets minus your liabilities. Your assets can be cash, savings, mutual funds, home equity, cars you own, etc. Liabilities can include bank loans, credit card debt, mortgage payments, etc.
How do you make money work for you?
Now that you have established your net worth, now set a goal. What is your money goal? How fast do you want to reach this goal? Earn additional Rp. 500,000 per month will be different from the goal of retirement at the age of 30 years.
I recommend setting realistic short-term goals and long-term goals (6 months) to start with. Setting short term goals and achieving them will create positive momentum and you will be motivated towards your long term goals.
1. Find Your Expenses, Savings and Investments
I’ve written a lot about budgets before and why everyone should set a budget. Most of us have probably downloaded a budget app or two to help us figure out our expenses and savings.
Especially if we have a budget in our hands, that doesn’t mean we will stop and take the time to figure out every penny spent. But with that budget we will understand our wallet leaks are different from what we budgeted for. Create a budget wherever you want. Whether it’s an Excel spreadsheet, an App, or pen and paper, so you can track your expenses, savings and investments.
2. Appreciate your income money
If you want your money to work for you, start building your savings. On payday, set aside Finance in advance for savings. Treat the money you put in your savings as an expense.
Every month, the first “Expenditure” that out of your bank account directly into your savings account. Automate the process so that the money is not used arbitrarily, and so that your goal is achieved which is to make your money work for you.
3. Look for Investments that Increase Income
Additional income is also needed by someone who wants to increase his monthly money so that his financial goals are quickly achieved. But make sure you get the income not from a side job that interferes with the work process at your main company. Don’t get fired because you are more concerned with your side job. For example, selling during office hours.
If you want to have an income without disturbing your working hours, then you have to choose an investment or a job that you can handle after coming home from work. Start by looking at stock investments that are diligent in distributing dividends. Investments in gold and mutual funds can also be a large income stream, especially since they are accessible online.
4. Side Job
We all want more money. But what are we really doing to try and make that Finance? Find ways to make money outside of your full time job. You can always get a second part time job, but that can limit your flexibility.
There is a growing number of jobs that can be done at home to allow for a lot of flexibility. Some part-time jobs that have great opportunities are as date writers, graphic design, and video creation services. Or you can use your hobby if you can make extra money. Then do it!
5. Become a Friend in a New Business
Say you have a trusted friend who is trying to start a business. This friend is very talented and hard working. Then you can join in the business. Assuming you have some Finance you want to invest, a new venture may be a great way to make your money work for you.
But it all depends on the success of the business, so you can wait for the results based on the percentage of money you invest. And also you shouldn’t scold your friends if your business isn’t going well, especially when it goes out of business, because not all business will run smoothly at the beginning.
6. Investment in Financial Instruments
If you have cash and are willing to take risks, but do not have adequate knowledge in managing investments. There are many ways to invest in financial instruments these days and for those who don’t have much time. You can consider buying mutual funds online as an investment option.
This online mutual fund investment will make it easier for you to become an investor even if you don’t have a lot of money. Starting from Rp. 100,000, you can invest in various investment models in just 1 mutual fund product. Starting from the registration process to transactions you can do on your sophisticated cellphone. And you don’t have to worry about your Finance being taken away. Because the online mutual fund customer’s money account is separate from the fund account of the investment management company.
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7. Equip More Knowledge and Increase Your Income Potential
Return to demand knowledge, earn additional certifications, or invest time in learning. Because it basically increases your earning potential. The more expertise you gain in an exclusive field or field of study, the more your self-worth will continue to grow. Investing in yourself is likely the best way to find opportunities for money to work for you.
Well, those are some of the explanations above that discuss Finance working for you, hopefully this article is useful and thank you.