5 strategies to grow your money
Since the coronavirus pandemic struck, the need to gain financial stability has become more important than ever. With millions of people globally suddenly becoming unemployed due to the economic impact of the COVID-19 crisis, having a good investment and savings culture is crucial in avoiding debt.
To find the right investment and money-money ideas is possible but only if you’re looking in the right direction. There are some proven principles that if followed diligently, can help you make the most out of the money you earn and reduces your losses drastically.
Growing your money requires a proven strategy and here are some tips that can help you get the most out of your income.
- Stay out of debt
One of the biggest enemies of wealth is debt; and if you want to grow your money, you will need to reduce your existing debt to the barest minimum.
Before you begin executing your savings plan, it is important to get rid of every non-mortgage debt as quickly as you can. Debts such as credit cards, loans, and overdrafts need to be cleared to ensure you don’t keep on spending on accumulated interests.
- Have enough money saved up
If you don’t have a substantial amount of ‘liquid’ cash saved up that can be used for your short-term expenses, then that’s what you need to focus on.
Having money in your savings account that you can easily access and that can cater for you and your family for at least 3 months of no additional income is important. Think of it as a savings safety net in the case of rainy days.
Create a budget of all your necessary expenditure in a month and multiply it by at least three, then keep that money aside in an account. Remember, you can’t spend this money unless it is an emergency. You can only start investing when you have reserved enough money in this savings account.
- Invest in different ventures
It is not advisable to put all of your money into one investment channel as this possess a huge risk. Therefore, to be on the safe side, you should invest your money in different asset classes such as properties, cash, shares, bonds and many other investment channels.
Playing jackpot games for money can also be another way to grow your money. Just like traditional casinos, online casinos offer players the opportunity to grow their money by trying their hands on different games with potentially large winnings.
There’s no certainty when it comes to investing, so never put all your eggs in one basket.
To successfully grow your money through saving and investing, it’s good to be consistent. No matter how small the money you have left after your expenses each month is, putting it aside into an investment each month would grow into something bigger in the long run.
Also, if you invest at regular intervals—ideally, once in a month or in a quarter—you can benefit from volatile investments like the stock market and gain decent returns.
- Change your investment plan as you grow older
Your investment strategy needs to change as you grow older.
When you’re much younger—particularly in your twenties to even fifties—you can afford to invest your money in riskier schemes and products in the hopes of getting decent returns in the long run.
However, as you grow older, it’s more advisable to put most of your money into more stable investment schemes, that though aren’t as profitable but are a lot safer than others.
It is also a good idea to move your money from more volatile investments like properties, commodities and shares to more stable ones like bonds, gilts and savings accounts few years to your retirement. Doing this would allow you to benefit from the gains you have accumulated over the years and sustain it even if you retire after the market begins to dip.
Finally, it is important to only invest in schemes that you understand and not let greed cloud your decisions. Make your own research and equally seek professional advice before making any long-term investment.