Grow Your Money!
No matter how much money we save, our money always loses value over time. The main culprit is inflation. Since the price of almost everything we buy increases over time, the same $100 we have today will buy less in the future. Neither you nor I can avoid inflation. So it’s important to grow your money and create investment funds.
If you don’t grow your money, and the inflation rate stays about the same at 4%, then about every fifteen years, half the buying power of that money disappears!
Let’s use $100 as an example. At the end of fifteen years, that $100 is like $50 today. After another fifteen years, that $100 will be like $25 today.
But if you grow your money, it will not only keep up with inflation, but it will far surpass it! Instead of letting money sit in the bank and not increase in value, we must find ways to grow it.
Starter Ideas to Grow Your Money.
1. Get out of debt.
Going into debt means paying more later. The longer we’re in debt, the more we’ll pay overall. We need smart spending habits to help get out of debt.
Since the interest we pay on debt eats away at part of what could be our savings, we should pay off as much as we can while still setting aside some money for savings.
2. Have contingency funds.
It sure is fun to live in the present. In fact, some people think we shouldn’t worry about tomorrow because it hasn’t happened yet. But tomorrow will soon become the present. So we need to build a safety net. We need enough savings to keep us going for six months without income.
3. Spend on investments, not assets.
Consider a house as an example to grow your money. Realtors say it’s practical to own a house. Instead of paying rent money, a mortgage is better, because we’ll end up owning the house.
But what they don’t tell us is that a mortgage comes with other expenses.
From one perspective, owning our house is security for our family. On the flip side, the money we put into our house takes away from growing capital opportunities.
A great mindset to have is this: rather than spending the bulk of our salary on assets, use it instead as capital to earn more money. As we grow our money in other income streams, we use the earnings to acquire assets.
4. Learn how to invest money.
As we take the necessary steps to get our finances in order, we can set aside time for improving our financial literacy. There’s no excuse for not educating ourselves, since many resources are available. Learn about investment funds.
Instead of keeping all our money in savings, invest some in the stock market. Mutual funds are safe and profitable. Asking is free. Talk to a bank manager or one of the securities firms.
As you grow your money in investments, you’ll open your eyes to new opportunities.
5. Start a small business.
What professional services can we offer? If not services, can we think of products we can make ourselves and sell? Can we trade products?
A small business is low-risk, and its rewards can be high. It depends on the business we get into. Good advice to follow is that when we do start a small business, we make sure the business has the potential for growing our money.
By the way, a home-based business can save on our taxes. By talking to an accountant, we can find out how we can further reduce our taxes with a small start-up at home.
6. Get insurance plans.
There are insurance plans for everything. Insurance is not an expense – it’s protection! The great thing about the insurance industry is that it has evolved. The policies offered now are very competitive and diverse. Large insurance companies will always have plans that are ideal for each person. And besides offering insurance plans, they offer investment opportunities we’ll want to look at.
7. Invest in ourselves.
“Knowledge is power,” so people say, but is it really? The same can be said about skills. Consider this: we may know a lot of things, but until we act on that knowledge, what use is it?
For that reason, the greatest business coaches teach that it’s our attitude that determines our altitude. When we have the right mindset, everything becomes possible. The sky’s the limit!
Growing money begins with building ourselves, and that’s why the best investment we can make is to learn. And when it comes to learning, there is no better time to start than today.
Time is a precious commodity. In fact, not even the richest person can buy time. We should use our priceless time to learn. It’s the one thing we have in common with the richest and most influential people in the world. The rich, the middle-class, and the poor all have the same 24 hours each day.
That’s how you grow your money. It’s all about the attitude!
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