If you, like many, find that you make so much money from your businesses or earn so much from your paid jobs and yet are unable to save or account for how you spent your earnings, then this article is for you!
Making your money work for you has become a necessity. People are displaced from jobs unannounced, businesses are crumbling from a very tough economy and even jobs are hard to secure on the whole. Hence there is a need to start thinking ahead and securing our wealth for the future. These 6 ways as outlined by Sean Gould, a wealth strategist and a certified financial planner will guide you on how to put your money to work and count the gains in the future.
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Open a high-yield savings account
According to Gould, before you send your money out to do the heavy lifting like paying bills etc., it is of utmost importance to open an emergency savings account and store away a portion of your earnings on a monthly basis. Savings accounts that operate on monthly interest should be your target. These accounts are available in your local banks.
Save in retirement accounts
These are investment accounts where savings are invested in the market and have the potential to appreciate exponentially. These accounts are often provided by employers in the form of pension accounts. Returns on these savings will work for you tax efficiently.
Invest in the market
Allowing your cash to sit in comfort according to Gould is not a good way to make money. Keep your ears down and participate in the market. Do not be afraid to take risks. Get an investment account. E.g. a fixed deposit or call deposit account available in your local banks. Even though market rate fluctuates, be sure you are following up and ensuring you are gaining in on the favourable rates that will cause your savings to appreciate.
Invest in real estate
Being a land or house owner has become a lucrative investment venture. People are somehow displaced from their homes for one reason or the other, and you find that the need for shelter has increased over the years. Hence branching into the real estate sector with be an answer to the common need of the people. Gould advises the possibility of either buying a single home to live in to be an investment, or investing further from just a home; like a land to sell or stores, homes, apartments or rooms to rent depending on the market. However he discourages real estate investors from weightlifting their portfolios too heavily in just one kind of asset. Diversify!
Pursue a professional degree or certificate
It is true that education does get one further on that ladder. According to Gould, if you want your money to work for you, then you must increase your worth in the job market! Get an education that will make you more marketable and a higher earner. Not necessarily a graduate program of sorts, but it could merely be attending workshops, training or online courses in your area of specialty.