Throughout history, people have consistently been provided with the advice of making money work for them. In fact, it is considered to be one of the most common financial tips.
The question is, what does this actually mean and how can a person go about achieving this task?
Ultimately, there is no single, simple strategy. However, there are several techniques that have aided millions in not only acquiring money, but successfully making that money grow. The following steps will help you to get your money to work for you, not against you. If you are ready to make more, save more, and experience more, continue reading to find out how:
- First and foremost, do not simply depend on the income that you acquire through your “day job”. You should work on developing passive income. Essentially, this means that you make money with little to no effort. There are many ways to do this. Examples of this include engaging in a hobby – such as crafting – for money or creating a website about a topic that you are passionate about. There are many companies – such as Brick Road Media – that can help with these types of endeavors. It just takes a little time and creativity and you are sure to discover a way to optimize the amount of money that you make.
- Next, you should open a savings account that has a high yield. That is, a savings account that will generate a very high level of value as your money continues to remain in that account. Regular savings often has an interest rate at about 0.01%. High-yield accounts typically have a savings interest rate in excess of 1%! If you look carefully, you will see that is about 100 TIMES what you would make with a standard savings account! That is an excellent way of making your money work for you, not against you!
- Finally, you should take a good portion of the money that you have and you should store it in a retirement account. In fact, it is a good idea to take your money and store it across several retirement accounts. Examples of these types of accounts include both IRA accounts and 401(k) accounts. You may also opt for a HSA account. This is for health-related costs. If the need arises, you may use this for health expenses and you do not have to pay taxes on it. When you turn 65 years old, this type of account will transition into an IRA account and you will have the freedom and flexibility of spending it on other things – without experiencing a penalization!
As you can see, there are several productive means of making your money work for you and not against you. Somerville National Bank is standing by to assist you in this endeavor. We have branches in several different locations and our specialists place a special value in your money, and in you. For more information, visit one of our locations today: http://somervillenationalbank.com/locations/