Did you know that while you subject yourself to a 40-hour work week, you can also subject your money to working for you 24/7/365? Getting your money to work for you while you also do your job is a great way of earning more income in the long run. Below, I’ve listed down ways you can get your money to work for you.
Settle Your Debts
Technically, this may not seem like you’re getting your money to work for you because you’re spending it, right? Well, on the contrary, settling all your debts in the shortest period possible prevents you from paying any further interest. Let me explain: Say you own $10,000 to your credit card company, and the company has a 20% annual interest rate. By the end of the year, instead of owing just $10,000, you now own $12,000. That’s an extra $2,000 in interest that you could’ve used for something else! Paying off your debts as soon as you can just saves you thousands in interest in the long run. It may seem hard to pay off at first, but it is possible.
Invest in Stocks
The most obvious way to get your money to work for you is to invest in stocks. Stocks may seem daunting, given how unstable the market is, but as long as you only put in how much you’re willing to lose, and make smart choices, you can easily have your money working for you. You don’t need years of research to pick out the best stock to gain the most profit. If you just invest regularly in a low-fee, broad-market index fund, you should be fine.
Take Advantage of Your Credit Cards
If your credit card offers rewards or cash backs, this is something you can use to your advantage. Some credit card companies offer around 6% back on purchases at select stores, while some will pay back around 2% on almost all purchases made.
Buy Immediate Fixed Income Annuities
Another way you can get your money to work for you is to buy an immediate fixed income annuity. This is a contract wherein a company agrees to pay out a set amount per month either for a certain period or for your whole life. Before you get too excited, though, you must do an in-depth research to determine whether this is right for you and why you might want to take this course of action.