You aren’t alone if you don’t have enough money in the bank. Reports show that only 39% of people said that they could come up with $2,000 in case of emergencies. If you’re in this situation, it’s time to start growing your wealth.
If you’re looking to grow your money in 2020, there are a few things you can do to help. Keep reading to learn seven things you can do to increase your wealth during the year.
1. Move Your Money Out of Your Checking Account
Do you have a lot of your cash sitting around in your checking account? The chances are that it isn’t doing much. The average interest rate than checking accounts offer is very low.
If you haven’t decided where to invest your money yet, move the money you don’t need any time soon to a high-interest savings account. You won’t make as much money as you would by investing it. However, you will earn more than leaving it with your bank.
There are several options out there for savings accounts. Their interest rates will go up and down based on the interest rate set by your government.
2. Invest In Your 401k
If your employer offers benefits for your job, you likely have the opportunity to invest with 401k matching. Your employer matches every dollar you invest in your 401k account. You can double your investment when you move some of your paychecks to this investment.
Most companies only offer matching up to a certain amount. Make sure to take advantage of as much of this match as you can. Every extra dollar adds up over time.
After you hit your match amount, it may be smarter to invest your money elsewhere.
3. Buy Index Funds
Not everyone wants to invest in individual stocks. It takes a lot of research and requires you to keep an eye on the market. The good news is that there is an easier option for you.
An index fund is an investment that gives you a stake in the top companies on the stock market. Your investment is spread out across several different sectors.
This is good because you won’t be affected if one company starts doing worse. An index fund is a diversified strategy that helps protect you from those ups and downs. Better yet, reports show that index funds typically outperform the average stock investor in the long run.
If an index fund doesn’t sound like the right investment for you, there are many other options for investing in the markets. Try out an Alternative Investment Platform to see what else is out there.
4. Pay Off Expensive Debt
Unfortunately, credit card debt is a big problem today. More people than ever spend much of their paycheck trying to pay down credit card debt. The problem is that this kind of debt is expensive.
If your balance is high enough, you could end up spending paying more money in interest than you do your principal. There is nothing worse to your cash flow than this.
Make sure you figure out your highest interest debt and focus on paying that down first. If you want to speed things up, you can get a debt consolidation loan.
Debt consolidation loans allow you to pay off all your current debt. You’re left with a smaller monthly payment and a lower interest rate after you pay the rest of your debt off.
5. Start Investing in Real Estate
There aren’t too many ways to quickly increase your net worth. Real estate is one of the ways that work.
Focus on finding real estate that is selling for below market value. You want to find fixer-uppers that can increase in value after you put some money into them. If you find the right property, you could get double the net worth back for every dollar you put into the home.
Once you get things fixed, you can either flip the property or hold it as a rental. If you’re looking for long-term results, owning real estate for rentals is the way to go.
6. Get a Side Gig
The internet has revolutionized the way we work. You don’t have to go to an office to do your job anymore. You can do everything from the comfort of your own home.
You can use this to your advantage by using the internet to find more work in your spare time. You can do this by freelancing for other companies that need workers.
There are many in-demand skills like programming and graphic design that you can learn. If you can prove that you can get the job done, you can command a high hourly rate. Get enough decent freelance jobs, and you could start making more than your day job.
If you don’t want to run a freelance business, you can work with gig jobs like Uber and Door Dash. These companies provide the customers for you, and all you have to do is make a quick drive.
7. Educate Yourself
If you don’t want to take on extra work, you need to advance your current career if you’re going to increase your income. There’s no better way to do this than educate yourself.
Invest in training programs that provide you the skills you need to get better at your job. You want to show your employer that you have the tools you need to advance at your organization.
If you have trouble getting a raise at your current job, you may need to look for another job. There are many professions where jumping jobs is the quickest way to get a pay raise.
Make Sure You Grow Your Money Every Year
2020 may be the year you finally decide to start increasing your wealth, but that doesn’t mean it should be the only year. Make sure you use the tips above to grow your money in 2020 and beyond. The earlier you start increasing your wealth, the better off you’ll be in the long-term.
Do you want to learn more life tips to help get you through everyday life? Head back to our blog to discover our latest tips and tricks.