Kennysplash
Verified member
Everyone knows the best way to make money is to let your money work for you.
But what does that actually mean?
How can you make it happen?
And how much money do you need before you can get it to work for you?
If you want to know the answers to these questions and a whole lot more, keep reading.
1. Talk To Someone With A Successful Financial History
No matter what your financial situation looks like, the first thing you should do is identify someone who has done well with their finances and spend some time asking questions
2. Develop A Budget
It's something we've all heard a million times before, but how many of us actually have, and stick to, a personal budget? If you're guilty of being in the dark about your incomings and outgoings, putting together a budget is one of the best ways to start taking control of your finances.
3. Open A High-Yield Savings Account
In an ideal world, you'd have an emergency savings account totalling about six months of living expenses stored in cash. Even if that isn't the case for you right now, it's wise to start putting money away in a high-yield bank account that earns interest while you save.
Most transaction accounts offer an interest rate of around 0.01% – the equivalent of hiding your money in a sock under the bed. High-yield savings accounts, on the other hand, typically offer interest rates above 1% i.e. 100 times higher than a regular checking account.
4. Invest In The Stock Market
It's a common misconception that you need to have access to a lot of capital to start investing in the stock market.
As entrepreneur and stockbroker William O'Neil puts it in his book How to Make Money in Stocks: "If you're a typical working person or a beginning investor, you should know that it doesn't take a lot of money to start. You can begin with as little as $500 to $1,000 and add to it as you earn and save more money."
You also don't need to know everything—or even a lot—about the stock market to start investing. There are a number of passive investment options that allow you to "set it and forget it" and literally start making money in your sleep.
But what does that actually mean?
How can you make it happen?
And how much money do you need before you can get it to work for you?
If you want to know the answers to these questions and a whole lot more, keep reading.
1. Talk To Someone With A Successful Financial History
No matter what your financial situation looks like, the first thing you should do is identify someone who has done well with their finances and spend some time asking questions
2. Develop A Budget
It's something we've all heard a million times before, but how many of us actually have, and stick to, a personal budget? If you're guilty of being in the dark about your incomings and outgoings, putting together a budget is one of the best ways to start taking control of your finances.
3. Open A High-Yield Savings Account
In an ideal world, you'd have an emergency savings account totalling about six months of living expenses stored in cash. Even if that isn't the case for you right now, it's wise to start putting money away in a high-yield bank account that earns interest while you save.
Most transaction accounts offer an interest rate of around 0.01% – the equivalent of hiding your money in a sock under the bed. High-yield savings accounts, on the other hand, typically offer interest rates above 1% i.e. 100 times higher than a regular checking account.
4. Invest In The Stock Market
It's a common misconception that you need to have access to a lot of capital to start investing in the stock market.
As entrepreneur and stockbroker William O'Neil puts it in his book How to Make Money in Stocks: "If you're a typical working person or a beginning investor, you should know that it doesn't take a lot of money to start. You can begin with as little as $500 to $1,000 and add to it as you earn and save more money."
You also don't need to know everything—or even a lot—about the stock market to start investing. There are a number of passive investment options that allow you to "set it and forget it" and literally start making money in your sleep.
