Money makes the world go round. Money puts food on the table and a roof above your head. However, money doesn’t grow on trees. You need to earn it.
Clichés aside, it is true that cash is hard to come by. You gotta work hard and work smart to get the green. But someday, you will reach a plateau, a ceiling—the terminal extent of how much your hard work will earn you. Once you hit that, it’ll become difficult to raise your net worth again.
That’s why you should consider growing your finances as early as now. And here some tips to help you do that.
Set Up a Business
You can’t be an employee forever. Either you’ll commit a mistake that’ll get you fired, you retire from old age and live on a pension inadequate for your medical bills, or you burn out and quit. Besides, promotions and raise only come once in a while, and they may not always be that big of a step beyond your current rate.
Those being the possible scenarios, you may want to start your own business. It doesn’t have to be a big one; you can even start from your own house then expand operations once your business becomes more stable. If you don’t know what your trade will be, check what’s currently trending and what will be in demand.
Once you have a physical store, you can hire someone else to keep running daily operations smoothly, freeing you up for other financial opportunities. In other words, there’s passive income for you!
Sell Stuff Online
A physical storefront may be unfeasible, especially if you don’t have the capital yet and/or real estate for commercial space is a premium in your area. That doesn’t mean you should give up on your entrepreneurial endeavor.
Today, you have the advantage of going global, of putting up a business on the internet. In fact, there are several platforms out there that help you start your online store with ease. Plus, depending on your local laws, you typically don’t even have to do too much paperwork to establish your online business. Just follow the steps of the platform of your choice and put up listings of your products or services.
Once that’s done, your real work begins: growing your store and seller reputation, getting more buyers, gaining more exposure, et cetera. Work will always be part of any financial equation—even if it involves the internet.
The first two tips focus on growing income. Now you’ll learn an alternative way: eliminating expenses. After all, net worth equals your income minus your expenses. So if you find it hard or can’t get a good break to increase your income yet, then decrease your expenses. Tighten your belt and save money.
One method of doing that is becoming self-sufficient. For example, you can try growing your own food. Yes, that may take time, but once you’ve built up a functional garden that yields nutritious produce, you won’t have to buy groceries ever again.
Another idea is to purchase solar panels. They may be expensive initially, but the returns in the long term are worth it; your electric bill won’t be drilling holes in your bank account anymore.
Hire a Financial Advisor
Paying someone to help you plan your finances may seem counterintuitive, but it may be necessary, especially if you do not have the time or knowledge to do it yourself. Besides, good advice is always worth it.
Remember what happened to Bitcoin? It was a craze in quarter 4 of 2017 as its price kept surging. People dove right into the thick of it and bought high, not realizing it was a bubble about to burst. And burst it did. A lot of investors who jumped on the Bitcoin bandwagon lost money. Had they consulted a financial advisor, they would have been aware of the risks in putting money in a volatile market.
There are more tips out there that can help you with your finances. Most of them are free and accessible, so take advantage of them. Educate yourself on your finances.
Otherwise, you may be spending money on an ill-advised “opportunity.” There are tons of those bogus get-rich-quick schemes out there. Learn how to spot and avoid them.