How To Earn More From Your Money
Let’s face it; everyone wants to make more money. However, you may be limited to the salary you currently have. Therefore, the better way to look at your desire to have more capital is to make your current income work better for you. Here are a few ways to get more out of your dollar.
Employer-Based Savings Plans
When you are stashing money away, it’s best to put it in an account that is difficult to access. Putting cash into a savings account that’s connected to your checking makes it very tempting to transfer the funds or withdraw some money for spending. A better option is a program set up through your employers, such as a 401K, IRA, or a Christmas bonus plan. There are many benefits with this option, such as:
- Your contribution is automatically taken out of your paycheck, and there is no debit card or easy access to the money.
- Specific saving plans allow your employer to take the funds out of your paycheck pre-tax, lowering the total amount of income that’s taxed.
- Your employer often adds their contributions to the account, essentially becoming a bonus on top of your salary.
Reward Credit Cards
You may feel that your paycheck gets spent before you even receive it. Bills and expenses add up quickly and get paid shortly after payday. Instead of using your checking account to pay your bills, apply for a rewards credit card. This program gives you cashback on your purchases, usually in the form of a cash rebate or points that you can use for purchasing gift cards or airline miles. When you use this card to pay your bills, pay the balance off each month, and you won’t lose your savings to interest and fees.
High-Yield Savings Accounts
As you begin to acquire more capital, you want to put it into a safe place. If you’re going to keep it where you can access it readily, consider a high-yield savings account. This usually requires a minimum balance but pays a higher interest rate. As your funds sit in the bank, it continues to make money for you.
With proper planning and investment, you can make your hard-earned salary continue to make more money. Setting funds aside in employer-funded programs, earning bonuses through your credit cards, and putting your savings into a high-interest account are all ways to make your money work for you.
