If you happened to save up quite a hefty amount of money in the past year and you’re looking to make even more from it, then here’s how! Learning to make your money work for you is the secret to how wealthy people build their fortunes. In today’s blog post, we will be talking all about maximizing that extra money you earned. Let’s go right ahead!
Maximizing your extra money
What's Inside
Making the most out of your extra money is a question we are faced with a lot. While others turn to professionals for advice, some go to websites and forums like Empire27 forum for free tips on financial management. The most common question we often question we come across however would be, is it better to save it, invest it, or just simply spend it?
According to the responses, the best way there is to make the most out of our money is to actually start putting it to work. One thing that they have forgotten to mention however is building healthy spending habits as well. Because what is the use of money if we don’t get to spend it right?
So after scouring through dozen financial “how-to’s” on the internet, we summed up the most important ways how to maximize your extra money and they are to:
- Cut on expenses
- Open a savings account
- Negotiate a raise
- Take on side jobs
- Develop your skills
- Grow a business
- Make small investments
Cut on expenses
The best and most powerful way of maximizing your earnings is to learn how to save them. Being mindful of your expenses shows just how disciplined you are with managing your money. Before you can venture out into a business, or invest, you must first be aware of how to properly preserve your income or risk slowly losing it. The first step to maximizing your earnings is to cut down on unnecessary expenses. Adjust on utility spending costs, paid subscriptions, expensive dinner outs, etc.
Open an online savings account
We need to Look for high-interest savings accounts. A popular choice is those that are online. Since they are online they don’t need to spend for the overhead costs of running a bank, so oftentimes their interest rates are higher than standard, typical banks.
Negotiate a raise
Be determined to know your worth. Your highest income potential comes from your experience, work history, skills, and qualifications. If you think you should be earning more from your employer based on that then it is time to negotiate for a raise.
Most employees fear that they will lose their jobs by asking for more but not negotiating for a raise is a mistake because you wouldn’t know what the maximum income potential that you can have. The trick is to have skills that are in demand to become indispensable and have a reasonable negotiation with your employer. Imagine all that money you’ve been missing out on!
You can utilize websites like Glassdoor or IndeedPH to search for salary reviews of the company you work for. If you know you have the certifications and enough experience, those are ample enough to land that higher-paying job.
Develop your skills
The skills we have are like assets we can use to increase our income. Think of it like you are investing in yourself. Learning new skills means becoming more open to other skill paying jobs than you can easily do on the side. The trick is to expand the skills you have already developed and are generally interested in.
For example, you enjoy creating content for social media, why not become a social media manager? There are a lot of small online businesses that are in need of someone capable of handling their social media accounts for them – and they pay well as well. Or maybe you’ve always wanted to sell your arts and crafts online? You can start by attending webinars or online classes to further develop your skills from websites like Skillshare. Determine what you are good at first, then seek a way that you can capitalize on it.
Take on side jobs
Now that you have invested some time and money into some extra skills, its time to put them to work. Increasing your income through side jobs gives you a tremendous advantage because you are opening up yourself to more than one income stream. That means that you will always have a fall-back no matter what happens. With the money you have saved up from your previous job, you can start to fund your side hustle. If you manage to earn around PHP 10,000 a month additional to your main job, you could be earning an additional PHP 120,000 a year just from taking side jobs!
Grow a business
Venturing into business can be daunting and intimidating at first – since it requires putting in capital at the start. But these hurdles are easy to skim by once you have a profit motive in mind. Growing a solid business starts with a good business plan. Once you have your plans laid out, you might want to consider taking up a business loan, or partner with your friend or colleague if your capital isn’t enough.
Having a business, whether big or small, is similar to taking care of a tree. It will not blossom on the first day, and you have to take special care of it during the first stages of growth. With enough tender loving care, your small tree will grow into a tall, proud, fruit bearing beauty!
If you happen to already have an existing business, there are some ways to increase your earning potential. One common way is to use free marketing tools online just like Canva. Holiday seasons are always a good opportunity to increase your sales by creating holiday themed products.
Make small investments
According to most financial experts, one of the best ways to maximize your money is to invest in it. Make your money work for you by utilizing the power of compounding your income. Wealthy people know this and that is what separates them from others. If an average man works only to spend his earnings, he will work for the rest of his life. On the other hand, the rich man knows that money can make more money.
Investing is one of the ways you can earn passive income. It doesn’t necessarily have to be a big investment all at once. For example, you can put in a few of the cash you have saved up from your salary every month into tiny investments like stocks or bonds. However, investing also carries a certain risk so it’s best not to go all in. Only put in money you are comfortable with. Because navigating through investing can get a little bit complicated, it’s also a good idea to consult the help of a professional first.
Maximize yourself, maximize your wealth
It may sound cliche but dont forget about yourself. Although these tactics are proven useful, you are only able to make as much money as your physical and mental health allow it. So don’t forget to invest in your wellness as well. Your brain and your body are the best financial assets you have, so take good care of them.
With good health, comes a good mindset for increasing, and maximizing your overall earnings. As long as you have the grit and will to put in the hard work, you won’t be far from reaching your financial goals and securing a successful future for yourself.
