How can you make your money grow fast and easy?
Money can grow fast, but you first need to work to earn money. Use your earned income and wisely invest a minimum of 10% of what you earn. Protect your wealth by avoiding excessive spending, debt, get rich quick schemes, or investments you don’t understand.
Imagine, watching your money grow without your involvement. Your money is making you more money which pays for your lifestyle.
Investing is the best way to build wealth.
Luckily for you, I’m going to show you how to make your money grow fast and easy. I’ll show you why you need to work for money and how much to invest. Everyone should be able to follow this strategy, but few people actually will.
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How to make your money grow
Grow your money by working for money, investing your money, and protecting your money. You must first acquire money and wisely invest at least 10% of your income. Make sure you protect your money by understanding your investments and avoiding debt, spending, and get rich quick schemes.Click to Tweet! Please Share!Click To Tweet
Work for money
The first step is to actively work to get money. You need to get money so you can invest more money. The more money you make, the easier it will be for you to invest and grow your money. Money can be made through your 9-5 job, side hustles, or any other means of acquiring cash.
Set aside at least 10% of what you earn
You cannot get wealthy unless you are actively setting aside money for yourself to keep. At a minimum, set aside 10% of what you earn for retirement. Most working individuals can build significant wealth if they start early and keep 10% of their wages.
For example, a college graduate get’s their first job at 25 earning a $50k salary. This person would have $2.6 million by age 65 assuming they invest 10% of their salary at a 10% return.
The more money you can set aside, the easier your money will grow. Increasing the 25 year old’s contributions to 20%, they can retire with $5.2 million.
You may have to set aside more money if you’re older. Compounding interest works very well when you have a long-term outlook. Unfortunately, a 45 year old will have a harder time building wealth than a 25 year old.
As a key takeaway, the more money you can set aside, the easier it will be to grow your wealth.
Avoid excessive spending
People today have a hard time with spending. Growing your money is easier when you aren’t giving away all of your money to other people. The more content you are with your own life, the easier it is to grow your money.
Generally, people spend excessive money on food, entertainment, or luxury items. You’ll be better off if you can identify where you spend money and take control.
For example, do you spend a lot of money going to bars with your friends? Are you someone who always wants the latest iPhone?
People who grow their wealth fast are amazingly content with their life. They don’t need to change anything about it because buying items doesn’t correlate to happiness. They avoid consumerism, but buy items when it’s needed.
Avoid debt unless it makes you money
Most people can’t grow their wealth fast because they have debt. For most individuals, debt works against you building wealth. Wealthy individuals understand how to use debt for their benefit while broke people lose money with debt.
For example, you could buy a new car and finance it for $300 per month. However, you’re losing $300 every month which could be used for investing. You’re losing money every single month because of car payments and lost interest.
A wealthy person could buy a new car, finance it, and then rent it out on Turo. The wealthy person has a financed car, but other people are paying off the loan through renting it. When the loan is paid off, the wealthy person owns the car but doesn’t use any of their own money.
At the end of the loan, the wealthy person has options. They can sell the car, continue to rent it out, or continue to drive it.
Never invest in anything you don’t understand and make good, sound, financial decisions. Invest with people who know what they’re doing so you don’t lose money. You can’t grow your wealth if you lose it to bad investments.
Most people would do well investing in low-cost exchange traded funds, like the S&P 500. You’re investing in the United States top 500 companies, so they generally know what they’re doing.
You wouldn’t give or invest $25,000 to your friend who wants to start a food company, would you? Your friend doesn’t know anything about the food industry or how to get a product to market.
Your chances of losing money to your friend is very high. However, an investment in the S&P 500 could be considered a lower-risk investment.
Always invest with people who know how to make money. Don’t invest if you don’t understand how the business model makes money.
Avoid get rich quick schemes
Get rich quick schemes are one of the fastest ways to lose or get cheated out of your money. In general, investments are riskier the faster and better the returns are promised to be.
People who are desperate or easily gullible often fall victim. Rich people understand the best way to build wealth is slowly over time.
Remember, nothing great was ever built overnight. Instead, consistent effort over time builds great things.
Your efforts are best spent investing consistently over time.
Increase your earnings
Growing your money is easier if you can have a high income, but keep your expenses low. Invest the difference in your income as it grows and avoid falling victim to lifestyle inflation.
Imagine, starting out your career at 25 and making $60k per year. You are living on $30k per year and are able to invest the remaining $30k. At age 30, you’re now making $100k per year, still living on $30k, and investing $70k.
The problem is that most people get a higher income and then start living a more expensive lifestyle. Remember, the more money you can invest, the faster your money grows. You can’t invest extra money if you’re too busy spending it.Click to Tweet! Please Share!Click To Tweet
Summary: How to make your money grow
As you can see, you can grow your money by working for money, investing, and keeping expenses low. Your goal is to invest a minimum of 10% of your income, more if possible. You’ll grow money faster if you can invest more of your money.
Always invest in what you know and with people that know what they’re doing. You should take great lengths to protect your money.
Simply put, keep as much of your money as possible and make sound investments. Learn the most you can about finances and commit to building wealth.