How To Make Your Money Work For You
Warren Buffet one of the best investors of all times says that, if you don’t find a way to make money while you sleep then you will work till you die. Put another way you have the option of always letting your money work for you or you will always have to work for it. Other wisdom suggest that you can be young without money but being old without money is increasingly becoming a difficult situation.
Before your money start working for you, some basics have to be in place. First, you have to ensure that you live below your means. To ensure that this happens, you need to keep track of your expenses, make a personal budget, stick to it and avoid impulse spending. The second thing is that you need to pay off your debts especially the interest earning debts because if money is working for you should be earning interest not paying it. If those basics are in place you will now have surplus money which you can put to work.
It is recommended that you start managing your money well once you start earning. However it is never too late to start. An African proverb state that “old age eat from youth ”, this suggests that to live comfortably at old age you will depend on the investments and efforts put when you were younger. Still, it is a great idea to let your money work for you as early in life as possible. Don’t be like a grasshopper that enjoys green when rains but starve when the dry season comes. Use the wisdom of the ants and keep something aside for the future.
One of the best ways to achieve financial independence is to show some self-love through always paying yourself first. This means you keep aside some money for the future in terms of saving whether you are in business or employed. Some automatic savings include, Savings and Credit Cooperative Society (SACCO) membership, high earning savings accounts, goal oriented savings accounts or life insurance policies among others. You should have an emergency fund which should be at least six times your monthly income just in case your regular source or job is challenged. For goal oriented savings, you can make regular savings for a goal such as high spending life events like a wedding, buying a new car, baby, paying a deposit for a mortgage or starting a business. Owning a roof above your head is one step towards financial freedom and you can even plan to become a landlord.
Another great way of making your money work for you is to make use of available options for gaining from the power of compound interest that keeps growing your savings. This can be achieved through utilization of various investment options. These include money market instruments where your money is invested in highly secured places such as government bonds. You can also put your money on equity markets by investing in the stock market. Stocks have been known to get you very healthy returns on your investment in the long-term you also get dividend income. When choosing the stocks to invest in stock you should choose ones that have greater growth potential. Warren Buffet quoted earlier is said to invest like a woman, this means that you have what it takes to pick great investments with regular practice and good advice.
While you are at it, ensure that you protect what you have by use of adequate insurance be it car insurance, education policies for your children suited for the kind of education you want them to have, travel insurance, home insurance and other forms of protection. You should also spread your risks by not putting all your eggs in one basket and avoiding high risk investments. For help and advice on the
best ways to make your money work for you, always seek financial advisory solutions from great sources. You can get this from wealth managers and premium financing solutions from a solid and dependable source such as the Standard Chartered Bank who are committed to be, “here for good”.
Good financial advice is one of the best gifts you can get from anyone. Take control of your present, your future and let your money work for you, so that one day you don’t have to work for it.
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