If you want your money to work harder for you, then you just have to know the right way to grow your money. In fact, you should learn how to grow multiple side hustles and stay organized because it will help maximize your time while making more money.

Come to think of this; farmers plant a few seeds and these seeds germinate and grow up to become big trees/plants that yield fruits bountifully to the farmers. More interestingly, these seeds grow up to become harvests in multiple folds compared to what was initially planted.

If you want your money to work harder for you, you should have a mindset like farmers!

Key Takeaways

• Investing in stocks is a good way to let your money work for you.
• Investing in indexed funds provides broad market exposure and has historically outperformed actively managed accounts while minimizing fees.
• Utilize rewards credit cards with no annual fee responsibly and pay off your balance monthly.
• Automating your savings and investments helps ensure you consistently save without the temptation to spend that money elsewhere.
• Engaging in retailer loyalty programs can provide discounts, points, and exclusive offers, thereby increasing your savings on future purchases.

How to make your money work for you

Not everybody is opportune to be an investor–although many people want to be. So if you are lucky enough to have cash overflow or extra income that you haven’t already set aside for expenses, count yourself lucky! 

However, if you fall on the other side of the divide, do not lose hope. You mustn’t necessarily have billions of dollars before you can make your money work harder for you. Check out these 13 Best Side Hustles For College Undergraduates that can fetch you money to invest as a college undergraduate. 

In this article, I will show you simple ways to grow your money or make your money work harder for you.

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1. Have a Plan for Every Dollar

You must have heard the saying that a life without a plan is like a ship without a rudder. Likewise, when you have money without a plan, your money will drift away aimlessly and be gone before you know it. 

If you truly want to make your money work for you, it is important that you have a solid plan for every dollar that comes in. In other words, every penny you earn should have a job. I know this may sound a bit awkward though, but trust me, it is a step that will make your money work for you!

To do this, simply outline where to put every dollar of your paycheck. For instance, you can categorize your spending according to your needs and order of priority like mortgage, college, groceries, etc.). Once you have done this, you will realize that it will avail you the opportunity to put excess funds to good use like investing it or saving it. 

You can also create goals starting from the most important to the least important ones. After creating the goals, you can now assign each dollar of your pay cheque to the first goal that you want to achieve.

2. Use High-Yield Savings Account

I talked about planning in my first point, right? Well, planning goes along with savings. Savings can be profitable if you know the key to savings. One of the keys to making your money work for you is through savings. Traditional savings accounts are good, however, you will be missing out on interest if you leave your money there. In order to earn from your savings, ensure you open a high-yield savings account. 

Although a high-yield savings account functions the same as a regular savings account, you can be sure to get a greater annual percentage yield on your savings compared to a traditional savings account. The sweetest part is that the longer your money stays in a high-yield savings account, the greater the chances of saving more with compounding interest.

3. Eliminate Your High-Cost Debt

I presume your expectation was that the next point on my list would be “Investing”. I’m sorry to break your heart but first things first! I know you want your money to work for you as soon as possible. However, debt could be one major obstacle to growing your money. Which is why we have written a helpful article on 6 smart ways to make money on debt.

You can hardly grow wealth if the debt is holding you back. As a result, it is highly recommended that you eliminate all high-cost debt because it can hinder or even kill long-term wealth. Take a look at this: most credit cards typically have high-interest charges. Some go as high as 35% per year meanwhile personal loans could have lower interest charges of about 20%. Now, imagine how much such high interest rates on loans could cost you over time. 

That is why it is advisable to eliminate high-cost debt as soon as you can. Ensure you pay off a credit card in full. If you do this, you could earn as high as 35% on your investment and use the savings profitably.

Now let’s talk about investing!

4. Put Your Money in Real Estate

Without mincing words, real estate investment is a sure way to make your money work for you! If you are fortunate enough to have money to make down payments on property please do not sleep on it. Invest that money in real estate right away. It is undoubtedly a good way to make your money work for you. 

When you buy a property, you become the owner of the property and you will have absolute control over the property. Then you can decide how you want to make money from it. You have several options, including renting it out and polishing it up to sell it. Another interesting way to make more money is by choosing to add value to the property and then increase rents.

5. Invest in S&P Funds

Another type of investment that tends to produce solid, dependable returns—averaging an 11% annual return historically—is the S&P fund. The S&P 500 is one of the most closely monitored stock market indices globally, and numerous funds are designed to invest in accordance with it. The most effective way to invest in the S&P 500 is by purchasing exchange-traded funds (ETFs) or index funds that mirror the index. 

While you cannot invest directly in the index, you can acquire individual stocks from S&P 500 companies or invest in an S&P 500 index fund via a mutual fund or ETF. Andrew Lokenauth, CEO of Fluent in Finance, states, “The S&P 500 includes 500 of the largest companies in America, spanning all 11 sectors. For most people, investing in the S&P 500 is a straightforward and low-stress option because it spreads the risk across 500 major companies rather than relying on a single one.”

6. Invest in the Stock Market

Investing in stocks is a powerful way to build wealth over time by purchasing shares in companies with the expectation of future growth and market performance. Start by defining your financial goals, as clear objectives will guide your investment decisions. Next, assess how much you can responsibly invest without compromising your financial stability. 

Once you’ve established your goals and risk tolerance, choose the appropriate investment account type, each with its own features. A general guideline is to save at least 10% of your gross income. For example, if you invest an initial $10,000 and contribute $1,000 monthly with a 10% annual return, you could achieve around $2.3 million in 30 years.

7. Invest in Indexed Mutual Funds

Investing in indexed mutual funds can be a sound strategy for many investors due to several key advantages. These funds typically offer diversification by investing in a broad range of securities, which helps reduce the risk associated with individual stocks. Additionally, indexed mutual funds usually come with lower expense ratios compared to actively managed funds because they passively track a market index. 

Historically, they have outperformed many actively managed funds over the long term, particularly after accounting for fees, making them an appealing option for those looking to grow their investments. Another significant benefit of indexed mutual funds is their simplicity, which makes them easier for beginner investors to understand. 

They track well-known indices, such as the S&P 500, providing a clear benchmark for performance. This straightforward approach allows investors to engage with the market without the complexities often associated with stock picking or active management. Overall, indexed mutual funds can be a cost-effective way to gain exposure to the stock market and align with long-term investment goals.

8. Take Advantage of Rewards Credit Card

In addition to saving and investing, using a rewards credit card with no annual fee can be a smart way to earn money because it is an excellent tool for financial growth.

By paying off your balance each month, you can potentially add hundreds to your bottom line simply by spending with a different method. While it requires discipline, earning rewards by effectively utilizing the bank’s money at no cost is a savvy financial strategy.

9. Enjoy Rewarded for Spending

You can find multiple ways to earn rewards for your spending, such as retailer loyalty programs, coupons, and rebate apps. Retailer loyalty programs offer points or discounts for frequent purchases, while coupons provide immediate savings on specific items. Rebate apps allow you to earn cash back on purchases made at participating retailers.

10. Automate Your Finances

In today’s digital age, automating your finances has become remarkably easy, allowing for seamless management of everything from automatic bill payments to scheduled investment contributions.

In fact, one of the biggest challenges of saving is remembering to set aside money each month before it gets spent on other things. Automating your savings minimizes the risk of using those funds for short-term pleasures, which can hinder you from achieving your long-term financial goals. By automating your savings, you can stay focused on what truly matters for your financial future.

Conclusion

Making your money work harder for you involves a combination of smart investing, disciplined spending, and effective savings strategies. By leveraging tools such as indexed funds, rewards credit cards, and automated financial practices, you can enhance your financial growth and achieve your long-term goals. Embracing these methods not only promotes responsible financial management but also empowers you to maximize your wealth over time. Start implementing these strategies today to take control of your financial future.