Do you wish to have financial success in your life? You are probably saying to yourself, "who doesn't?" Well I am going to share with you some tips that will help you put your money to work for you and help you reach your dreams faster. Most people pay out most if not all of their check to other people and companies and then spend whats left. Howerver, if you were to pay yourself first and put the money you are paying yourself to work for you, then you will reach your dreams faster. Read on to learn tips you can use to put your money to work for you.
Step 1: The most important step you have to do is pay off any debt you may have accumulated. If you have school loans, a car note, or mortage, then you should make it your goal to try and pay down these debts as soon as possible. Once you have paid them down, consider cutting up your credit cards if you have any or limiting your use of credit. It is much better to have money you can put to work for you as oppose to trying to put your money to work and you have debts that you owe.
Step 2: Your next step you want to do is open up a savings account that is designated for a rainy day fund. You want to add to this account and save this money for an emergency or time when you may need cash immediately. Ideally, you want to have 6 months worth of your current salary built up and saved into a rainy day savings account.
Step 3: You should invest in a 401K or IRA at your job or open up one if you can. In many cases, you can get your contributions matched by your job or your brokerage, but it all depends. The important thing is that you are investing money in these investment vehicles.
Step 4: You want to invest a great deal of your money into stocks as well. This should be where most of your money is going when you are in your 20s and 30s. I prefer to invest in blue chip companies that have been around for years and pay a good dividend. Some of my favorite picks are McDonalds, Coca Cola, and Walmart. Try to invest in stocks like these and reinvest the dividends these stocks pay you into buying more stock.
Stock 5: Try to create as much passive income as your can writing for sites like Infobarrel or Demand Studios or Bukisa. These sites are a great way to generate passive income which you can use to pay off bills or to invest.
In conclusion, you can realize your financial dreams. All you have to do is be smart with your money and have financial intelligence. If you know how money works and respect it, then you will be on your way to attaining wealth from your money working hard for you.