10 Tips to Help You Keep and Grow Your Money
This goes without saying that a penny saved is a penny earned. With the current economic and financial situations, it’s no more a case of asking whether you should put aside some money each month or not. The real question is how can you save some money and make it grow too. If you want to know more about how to save your money and make it grow, it could prove to be worth your while to go through this article. Here, we will unleash to you top 10 ways to save your money and make it grow. So, without any further ado, here are the 10 tips for growing your money:
- Eradicate the debt
- Have a savings safety net
- Pay off your mortgage as quickly as possible
- Don’t put all your eggs in one basket.
- Keep putting money in regularly
- Keep yourself informed
- Invest in things that you understand
- Cut down the tax
- Get a life insurance to protect your family’s money
- Change your investments as you get older
Eradicate the Debt
The first and the foremost thing you need to do in order to save and grow you money is to get rid of any form of debt. Try to pay off all your non-mortgage related debts. These include credit card debts, student loan and any other loans. There is plenty of information available online on how to do that.
Have a Savings Safety Net
You should try to have some cash set aside somewhere, which you could get your hands on, in case of any emergency. As a general rule, gurus always advise people to have three months of expenses set aside somewhere in case there’s trouble at work or you can’t work for a while. We like to say have five months of living expenses set aside, just in case. That means having enough stashed away in cash to cover your house payment, fuel expenses, homeowner’s / renter’s insurance, auto insurance, groceries, utilities, cell phone and internet expenses, and whatever else your core monthly expenses may include. This is the ONLY money we could see you possibly putting in a low-yield savings account. Period. And you don’t touch that money until you absolutely need to.
Pay Off Your Mortgage
Although most financial advisors would preach to you about getting different insurances instead of paying off your mortgage, we advise you otherwise. You should try to pay off your mortgage as quickly as possible. This will give you a peace of mind and you can then stop worrying about the home and go ahead and invest in other things.
Don’t Put All Your Eggs in One Basket
While we live and breathe real estate, we really don’t expect you to restrict your investing to just real estate. Instead, focus on diversifying your investments. Don’t discount stock and bonds IN ADDITION to a hefty and profitable real estate portfolio.
Keep Putting Money In Regularly
You should be regular while saving the money. You should put in some money in your account even if you have only a small amount left by the end of the month. In the long run, this will prove to be beneficial.
Keep Yourself Informed
Information is power. You should keep yourself informed about the financial conditions. Try to learn as much about how money works as possible. Read the finance section of the newspaper and subscribe to periodicals like The Wall Street Journal. You may not understand everything in the beginning, but the language of money is like learning any new language: You have to keep at it until it starts to make sense.
Invest in Products You Understand
As a general rule, you should only invest your money in things you You should not invest in something merely because someone else is. You should invest only in what you understand clearly. But never be slow to learn. When it comes to your money, that’s not the time to get lazy about learning and hope for the best. If you understand real estate well, invest in that instead of stocks.
Cut Down The Tax
You should not invest in things in which there is a lot of tax deduction. You should rather find the ventures which involve less tax deduction and are profitable at the same time. National Savings and Investments are an example.
Get a Life Insurance to Protect Your Family’s Money
You should get a life insurance. So that if something happens to you, it does not affect those who are dependent on you. They should be able to have a roof over their heads and food in their mouths. Investing in life insurance is a given.
Change Your Investments as You Get Older
You can invest in risky things during your twenties, thirties and forties. But as you grow older, you should invest in less risky ventures and you can probably guess what piece of advice we would offer you for investing. REAL ESTATE!. We recommend real estate investing because it gives you a stable, almost fool-proof return on your investment.
We hope these 10 tips will help you save and grow your money. Start acting on these now and make yours and your family’s life safe and financially sound.