We work hard for our money, but with the costs of petrol, groceries, and housing continuing to skyrocket, it’s time re-evaluate your investments and start having your money work for you. We can see all around us that many are using the cash flow they have now to build an empire that works for them. These people, whether through investments, stocks, or crypto, are making their money work for them. How can we do this for us? Only a money expert knows. We interviewed Gerry Incollingo is the Managing Partner ofLCI Partners, about the five ways to make your money work for you, including salary sacrificing and investing in stocks. Keep reading to find out more!
Here Are Five Ways to Make Your Money Work for You
1) Diversify your property portfolio to grow your income
High vacancy rates coupled with low interest and high inflation is the best type of environment to be growing your investment portfolio. It’s important to do your due diligence and talk to an investment specialist about finding the right property for you. If you already have a diverse property portfolio and are wondering if it’s the right time to sell and reinvest elsewhere, make an appointment with your financial advisor. You may be able to use the funds to purchase your dream home and be mortgage free.
2) Try debt snowballing
Having debt means you don’t have the opportunity to make your money work for you. It comes into your bank account on pay day and is immediately distributed into someone else’s pocket and with today’s high prices, you might find yourself struggling to fuel your car, let alone pay down any outstanding debts. Once you’ve got rid of your debt, it’s going to free up your funds to either invest so you have a passive income or purchase those things in life you’ve always dreamed about, like a jet ski, overseas holiday, or new car. Debt snowballing is the easiest way to get rid of debt.
You pay off the smallest debt first. Once that is cleared, you combine the money you were putting towards the paid off debt with the money you were using for repayments on the next smallest debt to pay that off. You’ll be pleasantly surprised how good it feels to clear a debt and how fast you can pay off your debt when you’re focusing on one bill at a time instead of lots of small amounts to lots of debts. When all your debts are cleared, providing you don’t take on any more debt, you’ll have available funds to invest.
3) Turn your hobby into income, make more money
If you enjoy creating 3D art, have a huge fan base on Instagram or you’re handy with chores around the house, there’s no reason you can’t turn your hobby into extra income. If you have extra time on your hands with the potential to earn good side hustle income from hobbies, why not? It might become so successful; you’re generating enough money to become your own boss. However, if you’re combining a side hustle with a full-time job, it’s important to talk to a financial expert to make sure you’ve structured things correctly, so you don’t have a tax bill at the end of the financial year.
4) Consider salary sacrificing for more money
By sacrificing a portion of your wages, you can grow your superannuation fund, as well pay less tax. One of the downsides is you won’t be able to access your super until you are eligible. However, when you retire you can look forward to a comfortable retirement, perhaps a South Pacific Cruise or a trip around Australia. Find an accountant who can figure out how this weighs on your wallet. It might soon be something that happens often to most of us, as many countries are looking to introduce a four day work week.
5) Investing in stocks might be a great option for you
Investing can be a good way to make your money work for you, but it’s important to seek professional advice. Given the instability due to current world events, before you commit to investing your hard earned dollars into the stock market, do your research. For beginners who are new to the stock market, I would generally recommend ‘blue-chip’ shares which are the big companies that are unlikely to bottom out. However, as we’ve seen lately anything can happen and investing in the stock market isn’t without its risks.