So you have the money and lotto jackpot. It’s time to use them for your own good and to double-triple the profit. Let’s find out the possibilities and bliss for the moment!
How to Spend Your Money
Working is fun, but life becomes a lot easier if you are no longer the only one who works. In this article I share simple ways in which you can make your money work for you. Wait ain’t this is a proverb especially for rich people?
It is rather the other way around. People get rich because they let their money work for them. And that is the reason that especially rich people apply these tips.
You do not get financial security as a gift, you have to do something for it. It requires planning, dedication and discipline. Three things that most people are too lazy for. That is not bad, but at the same time it ensures that you do not reach your financial goals and it has been a strong tool for business men’s to step higher on stairs.
So, let’s analyse on how you can make your money work for you. The principles are simple, and there are countless small and big ways you can start. It is not so much about the amount of money you have. The point is that you look at money differently to build a better future.
1. Invest to save money
Most people think they need more money. What they actually want is more disposable income. Making more money is a way to achieve that, but it is also the most difficult way. And it is certainly not the first step.
The first step is very simple: it is savings. If you can save 100 euros per month, you have created 1,200 euros of disposable income on an annual basis. You gave yourself storage – without uncomfortable conversation with your boss.
And the next step is even more beautiful. What if you do not spend that 1,200 euros on trendy lunch shops and new shoes, but on money-saving investments? Yes, that sounds boring, but it is a great way to put your money to work.
-Use the money to repay outstanding debts. Paying interest is wasted money, and the less interest you pay the more money you have left.
-Use the money to redeem your mortgage . Your mortgage is a socially accepted debt. By paying off, you reduce your monthly payments, build up your assets and your household becomes more resilient.
-Use the money to save energy. From solar panels, economical equipment, double glazing and insulation to -upgrading your boiler and driving more economically. The more money you save, the more you will have in the medium term. Make the calculations and see how much money you can save. It costs you money now, but you will later be grateful to yourself. A bit like leaving the piece of cake now, you later produce a slimmer body.
-Use the money to create a vegetable garden, so you save on food while at the same time getting a nice hobby. No, no huge savings, but a nice activity.
Save money and invest in further savings. This way you will have more money left for step 2.
2. Build up capital instead of debt
Yes, power. Sounds like it is only reserved for rich people. But that is not it.
Building power is the opposite of making debts. It is money to work so that more money is created. You can make that as crazy as you want, but in the basis it comes down to the following: investing .
The idea behind investing is that there is a big chance that you will get more money out of it than you put into it. The greater the risk, the greater the potential return is often. An investment with a return of 10% is almost always riskier than an investment with a yield of 4%.
Investing can be done in various ways. You can trade in shares (risky), secure your money (low risk and little return) or invest in investment funds (average risk, average return). You can invest in companies (very risky, chance of a very high return) or put your money on your savings account (currently you lose money because of low interest rates and inflation).
Saving is what most people do. But with savings you hardly build up capital. If you really want to get ahead, you will have to put effort into building a portfolio. Then you will have to figure out how to put your money into work that suits you. I like to invest in sustainable energy, social entrepreneurship and computer technology.
3. Make a plan
And why would you do all this? Because of freedom.
The fewer expenses you have, the less you have to work to sustain your current lifestyle. The more power you have – the harder your money is for you – the less you have to work yourself. The more your life can turn to do what you are passionate about, and the less it is about working for money.
And if you invest in a way that suits you, building a better life has a tremendous impact on the world. Invest in energy saving, generating renewable energy and initiatives that you think will make the world a better place.
If you want to move this way, it is important that you make a plan.
Find out where you can save
Find out how much money you can use for a better future
Calculate different scenarios. What does your future look like when you leave your house? And what happens if you invest all this money against an attractive return?
Take steps. Start saving, freeing up income, and continue investing from there.
Start somewhere, and expand your knowledge gradually. The more money you can put to work, the faster you will get ahead.
We all discover new things at some point which is uncertain and exciting, so take one step at a time and don’t let your focus to drift away from your goal.
Meanwhile you can watch for lotto UK Teatime Results here.