What To Do With That Extra Money
Money is what makes the world go round, and while it doesn’t necessarily bring you joy and happiness, it can definitely give you the financial freedom to do the things you want to do without feeling guilty about it. But one way to ensure that you are in a position where you don’t always have to worry and live paycheck to paycheck, is to know how to correctly manage your money. Of course, earning a good income also makes a huge difference, but regardless, if you know how to look after as much or as little as you have, then there’s no reason you can’t put enough to the side and start accumulating a lovely sum.
If you’re not sure of how to do this, here are a few ideas to get you on the right track.
Savings account
If you have more money coming in, be it on top of your usual income, or just more than you used to earn, then take this opportunity to move this bonus into a separate account. By doing so, you are less likely to keep tapping into it because it’s not with everything else. That way you can keep adding to your savings account every month, and begin to make a very nice amount without missing out on anything else. The trick here is to set up an automatic transfer and then forget you even have the account so that you’re not tempted to spend any of it. Then one day a time will come where you need money, whether it be for a large deposit or even a holiday, and then you’ll remember you have your savings.
Invest
If you have a decent amount that you’ve gathered, and you don’t mind taking your chances to grow that number even more, then you could always think about investing in stock shares. This tends to be a balance between knowledge, experience, and a whole lot of luck. Using a covered call screener can help as a strategy to increase your returns on long stock. There are various other tricks that you can do to aid you when first starting out, but you will find that the more you indulge, the quicker you’ll learn, even if that means the hard way.
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Financial advisor
If you aren’t too savvy with your finances and aren’t sure what would better you with the current circumstances you’re dealing with, then go and make an appointment with a financial advisor. They will ask you many different questions about your average spendings and earnings, along with any other interests or hobbies you have that cost money. – It’s best to bring receipts and statements with you so you’re giving correct information. They will then be able to give you the best advice to suit your situation, as well as any tips that could possibly increase your income, or cut down your spendings if they’re too much.
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Hi, I'm Kelly O'Donnell.