You want to start a business, go on holiday, or pay off your debt. However, your bank balance is telling you that it won’t be possible to do that for a while. What do you do then? Most people turn to money-making ventures that bring about quick results. However, while they are doing that, they are neglecting much simpler things that you can do before going to look for a side hustle.
In this article, we are going to look at how to make your money grow fast. First, from habits, you can change, and secondly, ventures, you can do that to attain your goal. Do remember that it requires a lot of discipline to be able to undertake any of what we share below. It is also a perfect example of the benefits of delayed gratification and how it relates to your ability to make your money grow fast.
Let’s dive in.
Living a more than minimalist life
Minimalist has become more common in the past few years, but people are still torn between embracing it and continuing the consumerism culture. If you to become a minimalist, you merely have to stop buying things you don’t need. Purchasing a large flat-screen TV for your room does enhance your viewing experience, but it doesn’t add the most value to your overall life. If anything, it leaves a substantial dent in your account.
Beginning a minimalist life, and sticking to it, requires honesty on your part and having an open mind. For one month or more, track your expenses. You can use one of the many money management apps there are online to track spending. After the month is over, look at the list of the things you purchase. With a pen and paper, make two lists, things you absolutely cannot live without (literally) and things you cannot do without. Walking into the office with a freshly brewed coffee from a coffee house looks cool. However, consider brewing it yourself and using a thermos mug to the office.
From the list of things you don’t need, look at how much you’ll have saved in that one month. Before you get any bright ideas, you might end up regretting; put that money into a savings account. You should only access that money when you need it for something you absolutely need, such as paying off all your debts. When you focus on purchasing what you only need, you’ll make your way to a debt-free life faster than you thought possible.
You could be living on a small paycheck that barely makes it to the end of the month, but you can still save. There are days a person can offer to buy you lunch, or you changed on a coupon, so you spend less at the store. Whatever you get, even if it’s a dollar or less, put it in a jar. At the end of the month, take it to your savings account. Slowly but sure you’ll have something saved up. Only access the mount for a rainy day and not for anything less.
The other approach to saving is putting money into your savings account immediately your salary comes in. You can have the bank set up a system where a given percentage of your income goes straight to your savings account, and the rest remains in your checking account. It is easier to save money that you haven’t set your eyes on than what you already have in your hand.
To make your money grow fast, open a savings account that accrues interest over time. Alternatively, you can put the money that you’ve saved into short term investments that give you high returns over a short period. These types of investments do tend to be riskier, so ensure that you work with a reputable financial adviser. That way, you can have your savings work for you without you having to touch the money you need for daily expenses.
Save on transport and housing
As you’re making a list of your expenses, look at how much you’re spending on transportation and housing (utilities included). That could be whether you’re making car payments or have a mortgage that you’re paying for. See which of these expenses you can save on. An example is opting to adopt a more active lifestyle and choosing to walk or cycle to work. The other option is carpooling and saving on fuel. You might not like it, but you could also opt for public transportation to save on gas money where applicable.
Around the house, you can look for ways to be more energy-efficient. Look up alternatives for heating and the like and see what changes will save you cash in the long run. The other reality with housing is that renting gives your flexibility. You’re able to use the money you would have used on the mortgage on an emergency fund. The other good thing about renting before setting is that you’re more open to take up job opportunities that remove you from one area because you don’t have a home that’s tied you down.
Start a side hustle
Nowadays, a lot of us are unable to live comfortably, let alone survive on one paycheck. That’s where you’ll have to get creative with how you can make extra money. People often think about starting a business that will finally grow, and they can now do that full-time. That doesn’t have to be the case, primarily because starting a company requires a lot of capital to get it up and running.
There are indeed tons of work-from-home jobs that you can get online. You can put in the time in the morning before you leave for work and when you get back. It is even better if you can get work done on the move, such as when you have long commutes. You can also find jobs to do on the weekends and holidays. Various online platforms do offer that but also look at the needs of those around you. What are people complaining about the most about? See how you can fulfil their needs and make extra cash from them. Remember to channel all the extra income to your savings.
Have a passive income
The fantastic aspect of having a passive income is that after initial work and investment, you can sit back and let money stream in. With the residual income, you can grow your money. It is what gets referred to as making money while you sleep. What it simply means is that you no longer have to trade your time to make money. Therefore, what you get is not limited to the amount of work in hours you put in a day.
There are various ways to get passive income. Put in your money in investments that pay in dividends. Some pay-out after a few months while others do so annually. Get something that works for you. You can reach out to investment professionals or companies that give you sound advice on where to put your money. One place that will likely come up is real estate as, in the world over, it has mostly proven to be profitable.
Invest in your education
Education is more accessible than before, and you can do it from the comfort of your home. It might appear counter-intuitive initially, but you do need money to make money. In this case, you’re investing in your education. You can take certification courses or go for a postgraduate degree. Study something that enhances your knowledge on the career path you’re on or area of interest/passion.
That said, it is not promised that you will get a raise immediately. However, it will open you up to new opportunities outside of the workplace. During networking events, you can have your own business card where you share your expertise with others. You could be an accountant, but you’re passionate about baking. After learning pastry, you’re now a professional in all things baking. Alternatively, you could be an accountant, and you get your CFA. You can offer your services to others outside the company that needs your expertise.
Don’t waste your youth
Getting rich is primarily based on hard work. It might not get you that promotion in the limited time that you want, but someone will take notice. That is how people get poached by other companies or get recommended for opportunities. Having a strong work ethic gets you noticed.
The other aspect of working hard is that you’ll begin to notice that you have free pockets of time. Administrative work such as sending emails, making copies, and writing proposals can feel like a drag. It is why most people spend too much time on these tasks that, in reality, can take a shorter time if you were focused. Learn to work through things that you dislike to both get them out of the way and make time for other things. With your spare time, you can come up with different ways to make money.
Working hard also has to do with how you spend your youth. Do the most now while you still have the energy to have a late-night hustling and even making it through a full day of work. As you get older, doing that will be much harder, especially if you have added responsibilities such as a family. When you are young, you have the energy to chase money wherever it would be. It might mean seeing your friends and family less, but it will pay off. Working hard also makes you prioritise what’s more important. Drinks with friends or colleagues every Friday after work might not be the best use of both your time and money.
The good thing about starting to invest early is made possible thanks to what we call compound interest. Essentially it is about is getting interest on interest that you’ve made over previous periods. The best time to indeed start saving was ten years ago; the other next best time is now. What can motivate you to start saving early is when you wish to retire by. If you want to retire at 30, then you should have started saving in your early 20s. If it is at 55, then the more years to save, the more money you’ll have for your retirement.
Start saving for your retirement. The other good thing about it is if you’re employed full-time, your employer can match how much you’re putting into the retirement up to a certain point. Take full opportunity of that while you still can.
The other reason to start early with regards to making your money grow fast is that if you want to start the entrepreneurial journey, you’ll have enough money saved up to start. It is better to fail in business early, where you can learn a lot. That way, in your 30s, you can, based on your learning, make better decisions. Don’t wait until near retirement to start a business, especially if you can start sooner rather than later.
In this article, we have looked at eight ways in which you can make your money grow fast. It is by no means an exhaustive list but rather a right place to start. Look at examples of those around you that you admire and how they were able to make their first millions. Read books, listen to podcasts, find a mentor; take whatever route you need to take to ensure that you reach your ultimate financial goal.
Lastly, when venturing on ways to make your money grow fast, you must have a goal or plan in mind. What are you saving toward? What is important to you? What value or benefit does it bring into your life? Have a solid direction in which you wish your life to take before applying any of the above ways. The danger of doing so is you’ll end up spending the money faster than you’re making it, leading you back into a cycle of debt.