Use these forms of investment if you are saving for something you will need to pay for within 5 years, like a car, a wedding, or education expenses. [2] X Research source You will not make as much money from them as you would through buying stocks, but you are also not likely to lose money. This doesn’t mean they’re risk-free, though![3] X Expert Source Marcus RaiyatForeign Exchange Trader Expert Interview. 8 April 2021.
Set aside a percentage of every paycheck for your retirement accounts. The more frequently you contribute to them the more likely you are to reach your retirement goals. Setting aside 10-15% of each paycheck for retirement is usually a good goal, though you should make a plan that works for your financial needs. Retirement accounts often have annual contribution limits. Make sure you understand any restrictions on your retirement account and make your budget accordingly. Your employer may have retirement benefits you can take advantage of, such as matching contributions to a retirement account. Ask your boss at work to find out.
You can create another revenue stream by purchasing rental properties. Keep in mind, though, that you will have to pay for the upkeep of the property. Always be cautious when purchasing real estate, as it costs money to maintain and can sometimes be a risky investment. Never purchase real estate if you don’t think you have enough income to cover all the costs of it, like repairs, insurance, and property taxes. Avoid purchasing real estate in areas where property does not sell easily. You want to be able to get your money out of investment properties if necessary. Areas where houses sell quickly and raise significantly in value over time usually make for the best investments.
Financial advisors usually charge fees, but these fees vary depending on the institution. Some advisors charge a percentage of the assets they help you manage, some charge by the hour, and others make you pay them a retainer for continued services. Ask advisors about what fees they will charge before you do business with them. [8] X Research source
Ideally, your budget should help you maximize your savings. If you can get the amount you spend on needs under 50% and the amount you save close to or above 50%, you will have a very strong budget. Try lowering your cost of living by making inexpensive meals at home. Moving into a smaller house or lower-rent apartment can also help you to save a great deal of money every year.
Download a budgeting app like Quicken, Mint or PocketGuard to help you track your spending. These apps can help people follow their budgets without having to maintain spreadsheets or save receipts.
If you use credit cards, pay off the balance monthly so you don’t have to pay interest. If you already have a considerable amount that you’re having trouble paying off, try to consolidate or refinance it. This might help you get a lower interest rate or stay on top of your monthly payments. [12] X Research source
Research relatively stable and lucrative career fields, like healthcare and technology, and find out what kind of education you would need to switch into a better paying career that looks appealing to you. If you go back to school, though, remember to be cautious about taking on debt. Look into scholarships, grants, and work-study opportunities. You can also try going to school part-time, so you can also work and use your income towards your tuition.
