We could all be a bit more financially savvy
You work hard to make money, but what if your dosh could work harder for you? You can use the money that you already have to make more and ensure you’re in the best financial position possible. To do this, you need to ensure you’re setting up your money in the right way and using it to create further income for yourself or help you save it. If this isn’t something you’re already actively making an effort to do, you might realise that you are doing it in some ways. If you already have a savings account, it’s helping you to get more from your money. But if you’re ready to start making your money work even harder, take a look at these tips.
Find the Right Savings Account for Your Money
Having your savings sitting in your current account is great for easy access, but not so good if you want your money to work harder. If you’re not earning any interest on your savings, they could be losing value as inflation increases. Savings accounts might not help you to beat inflation, but they can help you to make sure your savings don’t take too big of a hit. You can look at different interest rates for different accounts and find one that suits you. Accounts with quicker access will often have lower interest rates, whereas those that don’t have instant access may give you better rates.
Dip Your Toe Into Investing
Getting started with investing is something that a lot of people feel unsure about doing. You might be curious about it but nervous about the idea of losing your money. Perhaps you remember the financial crash in 2008 or you’ve always been told that investing is just gambling. But investing your money is a great way to ensure it’s working harder for you, instead of just leaving it sitting in a bank account. The good news is that there are many ways to invest, so you can find an option that you’re comfortable with and that helps you to meet your goals. There are different levels of risk that you can take and lots of things that you can invest in. If you don’t know where to start, you could speak to a financial advisor or just look online for resources about investing.
Earn Passive Income on Investments
Many investments are intended to be long-term. You buy them and then hold onto them for years until you’re ready to sell when the value will hopefully have risen. However, when you’re holding onto your assets, you can also make money from them too. One typical way that many people do this is by renting out the property that they invest in. Instead of simply holding onto an empty property until they want to sell it, they can make money in the meantime by renting it.
You can do similar things with other types of investments. If you’ve invested in cryptocurrency, you can look into staking with Swyftx. Staking your crypto gives you a way to earn rewards on the currency that you hold. Staking is a process used to verify cryptocurrency transactions, which requires holdings to be committed to support a blockchain network and confirm transactions.
Look for Other Passive Income Options
Your investments can help you to make passive income, but there are often other passive income options that you can explore. By investing some of your time and money into creating other passive income, you can get some more money coming in while remaining (mostly) hands-off. There are plenty of options for making passive income, so it’s worth exploring what you could be doing to earn a little extra money. You could set up some things to sell, whether it’s digital downloads of an ebook or an online course, or you might rent out your assets, set up a blog and earn money from advertising, and more.
Pay Off Debts for Better Money Management
If you want your money to work as hard as possible, it’s smart to take a good look at your debts. If you have any debt, it could be stopping you from making more of your money. Debt can hold you back financially and prevent you from achieving your goals. Of course, some debt can help you to reach certain goals that you have in life, such as owning your own home. Once you’ve paid off your mortgage, you completely own an asset that will most likely be a good investment. But other debts can just weigh you down and prevent you from making your money work harder. So it’s essential to focus on paying off some of your debts if you want to grow your money instead of slowly losing it.
Claim Anything You’re Eligible For
One of the best ways to make your money work harder is to claim any benefits or expenses that you’re eligible for. If there are tax credits, benefits, free services, or anything else that you’re entitled to, you can save money by making sure you’re claiming them. This can include anything from claiming free nursery hours for toddlers to making sure you include all eligible expenses on your self-assessment tax return. If you’re not aware of the things that you could be benefiting from, you could be spending unnecessary money. One of the useful websites where you can find more information is entitledto.co.uk, which will tell you about any benefits that you may be able to get.
Get Rewards on Spending Money
There are lots of things that you need to spend money on, as well as things that you want to spend money on. When you’re spending money anyway, it makes sense to see how you can benefit from your spending. Getting rewards when you spend can help you to get some of your money back. You can do this through cashback or rewards points, which both help you to get more from your purchases. There are rewards cards for certain stores or you can get a credit card that gives you reward points.
To make your money work harder than ever, find ways to earn extra from your savings, as well as saving more.