There’s something to be said for working hard to make money. But does your money work hard for you?
The methods we talk about today enable you to build a solid foundation of personal finances, giving you the means to work hard (and play hard!) without counting pennies in between. We work through the best money tips for paying off debt, and show you how investing helps grow your money so that you get to do what you want without financial stress at the end of it all.
What does it mean to use your money to make money?
Before we jump in, let’s establish a framework for what it means when we say, “Use your money to make money.”
Your money can earn interest, working to increase its value when you invest it in the market. If you decide to just leave it in a savings account, the little bit of interest you earn is less than the inflation rate. In the end, you are actually losing money.
The rich get richer by making their money work for them, and you can do the same thing.
7 ways to make your money work for you in 2021
What is the first step if you want to get your money working for you? Leaving your budget behind! So many of us have been raised to think that as long as we stick to a strict budget and work harder than everyone else, we will eventually have the financial stability to do what we want.
It turns out that on a $40,000 a year income and an average budget, it will take you almost 65 years to become “rich” in America.