5 Smart Things to do With Your Money
The following was written as a guest post for MI:
Learning to make your money work for you is a good idea for anyone who has suffered from the economy in recent years. There are several things that can be done to start earning a return on your money. Pick the ones that best suit your needs and you could soon see a turnaround in your finances, provided you pick a method and stay with it.
5 Tips that can decrease debt and increase savings
- One of the first things that should be done is to start saving money and when you compare savings accounts you can choose the one that has the most favorable terms and interest rates. When you compare savings accounts it lets you look at a variety of factors that could impact your money’s earnings potential. This encompasses everything from the fees that the bank charges to how high their interest rates are. Putting aside even a few dollars a month after you compare savings accounts can soon add up to a substantial amount.
- Paying off debt is a good way to save a lot of money that would otherwise have to be spent on interest. The highest interest debts should always be paid off first. This typically includes credit cards and store cards. With credit cards it is possible to switch to a low-interest card to realize savings of potentially hundreds of dollars a year. These low-interest cards should still be paid off as quickly as possible to avoid having to pay any unnecessary interest that does nothing to increase your wealth.
- Use coupons and shop when there are sales in stores. Many grocery stores have sales on canned or frozen goods. This is a good time to stock up on essentials and save money. When there is so much food on hand at home there is no need to go to restaurants. Going to restaurants is an easy way to get a meal but it can really cut into the monthly budget if moderation is not used. There are many things that can be done on a daily basis to save money, such as foregoing the daily coffee at the upmarket coffee shop.
- Investing in a Roth IRA or similar plan is a great idea for those who are younger. The money invested goes in after taxes, but by the time retirement age is reached there will not be any taxes. If your company has a match this is a good way to double the savings you put in. For those who are content to let their money grow slowly but steadily and in a completely safe manner, a certificate of deposit may be a good choice. This provides a better return than a savings account and the CDs are FDIC-insured. A good option is to consult with an investment specialist and decide on the best investment option for your needs.
- Taking courses or seminars can be a good way to further educate yourself in your chosen career. This increased knowledge and expertise can lead to career advancement and promotion that may not otherwise have been possible. Investing in yourself is a good way to kick-start your career and move up the ladder. People who are willing to put in the extra effort are always noticed by their employers. Another way to invest in yourself is to start a business on the side doing something you love. Put a bit of money into learning more about something you already know or are new at. This can lead to new business opportunities and financial growth.