You cannot have a secured financial future except your money starts working for you. Regardless of the size of your wage, your finances are not sustainable except you are earning additional income beyond your wages; as there would come a time you wouldn’t be on a paid employment. Your pension wouldn’t pay your bills and give you a comfortable life. You will need additional income to be comfortable. Thus, while you’ve still got the energy, put your disposable income to task so that it can earn more money for you. It’s not an option, it’s a must.
The first step to securing your financial freedom is spending less than you earn, all the time.
You can choose to reduce your expenses and you can choose to increase your income inasmuch as either action makes your income to become more than your expenses.
You can increase your income without actively taking up a second job by getting your money to work for you. Your savings account in that bank isn’t worth the trouble. The less than three per cent on it won’t amount to much. If you are not investing your money, fixed deposit would pay you far. Better still, open a mortgage bank account s you can take that mortgage loan tomorrow.
Put your money in the market
Putting your money in the financial market is the first thing that comes to mind when people think about making their money work for them. You can make your money work for you by getting involved in stock trading, Forex trading, commodities trading, buying government bonds or options trading, among other activities. The best part about putting your money in the market is that you get to determine the risk-reward investment that makes you comfortable.
Another interesting point is that you can also determine your level of involvement in the financial markets. You can choose the passive route by investing in the market using low cost index funds. You can also become an active participant by opening a brokerage account from which you can manage your portfolio says makingsenseofcents.com .
Take a leap of faith with real estate
It doesn’t take a PhD to know that real estate market is not for the faint hearted. However, if you have the money, ability to spot trends, patience, and a risk tolerance for losses in the value of your investment, you may want to consider investing in commercial or residential real estate.
If the real estate market appeals to you, you can start seeing your home as an investment or you could buy a second home, land, or stores to rentout. www.makingsenseofcents.com .
3 Lessons:
First, saving early is the key: The earlier you can start store away that money for retirement or other big goals, the better. As you can see from this example here, the longer money sits in an account, the faster it grows in the later years just before you actually use it.
Second, saving consistently is almost as important as saving early: Just set an amount that you’re saving each month and forget about it. Doing that is a big part of retirement savings success.
Third, the way that wealthy people continue to build their wealth isn’t really a secret. They spend less than they earn, save the difference, and let the power of compound interest make it grow.
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