When it comes to earning money, working is the most obvious method. And while having a job is both essential and a point of pride, whether you work for yourself or someone else, it’s also only scratching the surface of building the right money habits for the future.
Can you make your money work for you? The answer is yes. A few small changes in your spending and saving habits can help you build a retirement fund for your future. Here’s how.
Savings Account
If you’re not quite sure where to start, start slow. Open a savings account with the same bank where you have your checking account. Or, if you want to be bolder, check out savings account options with the best interest rates to help you save a little extra each month.
Every week, pay yourself first. Put some money aside into your savings to begin building your financial health. Try not to tap into it to ensure that you have some money in reserve for emergencies.
Passive income
Another way to make money work for you is to create a passive income stream. Passive doesn’t mean easy money. It’s usually a lot of work up front but with consistent returns with little to no involvement from you as it matures. Some popular passive income streams include:
- Peer to Peer Lending
- Crowdfunded Real Estate
- Self-Publishing eBooks
- AirBnB
- Rideshare Program
That may be just enough to give you a small taste of what’s out there. There are countless options, so check out what might be a good fit for your skills and interest levels.
Investments
Investing is a clear choice for a lot of people. Even when the market is particularly volatile, there have to be players in the game for it to continue to work.
In today’s digital world, investing is even easier. You can download any number of apps to help you with the process.
- Robinhood
- Acorns
- Stash
- Vault
- Stockpile
Each app offers something different, so take time to check them out and learn what’s right for your strategy.
Real estate
Have you considered real estate? There are a number of ways an investment in real estate can pay off. If you buy your own home rather than rent, you begin to build equity. But it can go much deeper than that.
Some people enjoy buying and flipping homes. The ability to get your hands dirty and see the fruits of your labor can be very satisfying. And the return on investment should pay off in a sellers’ market.
Or you may buy residential or commercial real estate to rent. If you partner with a property manager, you can be hands off in the process but still see a good return.
Financial planner
Of course, if you want to ensure your financial health for the future, you need to talk with a professional. Before you make any decisions about your money, schedule a time to speak with a fee-only financial planner.
They can take a look at any consumer debt, investment strategies, and long term goals to help you create a plan you can stick to make your money work for you.
It’s never too early, or too late for that matter, to start focusing on your financial future. Check out some opportunities to make or save some extra money this year.
