People have all kinds of strategies about how to get through their working life with extra money in their pockets. In this effort, lots of people work longer and harder, assuming that going the extra mile will yield extra wealth at the end of the road. While this might be generally true, it’s not a nuanced way to handle personal wealth-building. People who work harder and harder for more net monthly income usually achieve it, but their spending and saving strategies are often very inefficient.

Earning and saving/investing are two sides of the same coin. If the earning side is excellent, but the saving/investing side is woefully ineffective, your wealth-building will be like pouring water into a sieve. No matter how much you pour, it’s never going to amount to anything. It’s easy to exhaust yourself without examining the underlying effectiveness of your saving and investment strategy. For people who don’t wish to stay in their current career path forever, taking a careful look at how their money is being used after take-home is incredibly important.

Saving and Investment are two key aspects of this process. Saving is integral, and an emergency fund that could cover you and your family for six month will give a lot of peace and freedom to the way you think about life. It’s nice to know that the money you spend on a daily basis isn’t the only money you have, that you’re not one accident away from going broke. Debt reduction is another aspect of saving, plus some. Every dollar you eliminate in debt is another dollar you aren’t paying for. Annual interest and fees (APR) pull money out of your accounts each year, just as investments bring returns. It will be hard to investment meaningfully without getting rid of debt first.

If you’ve got this aspect of personal finance under control, it’s time to start thinking about investment. If you’re working for a traditional employer, you’ll hopefully have access to a 401(k) – the tax-protected account used for investment which many American workers put pieces of every paycheck into. If you’re lucky, your employer will match your contributions. Simply put, if you have access to a 401(k), you’re leaving money on the table if you don’t use it, and only increasing your labor.

It’s also a good idea to pursue other investments. ETX Capital has a platform from spread betting, a speculations markets that focuses on the value fluctuations in currency, stock, and other markets. It’s a short term investment strategy that can bring in real dividends, no matter how much time you have to spend on the activity. You should also look at making maximal contributions to a personal IRA or other, taxable investment accounts. Any extra money that you can put into diversified accounts that grow over time will eventually make you glad you have them.

In the end, you should make your money work for you, if you work hard for your money. Most people don’t love their job for its own sake. Make your money grow as efficiently as possible and you might not have to work so hard and long.

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Lisa

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