5 Simple Ways How To Make More Money And Increase Your Net Worth
Are you looking to make more money and increase your net worth? These are five simple ways!
Inflation and currency devaluation make everything you buy more expensive. Your dollar continues losing value.
Life continues to become more expensive.
You still fall behind working eighty hours a week.
You struggle to pay your bills.
You continue to see your standard of living decrease year after year.
You must find a way to make more money since inflation is not going away.
Money makes your life easier, reduces financial stress, and gives you freedom.
I've delivered food for Grubhub to make extra money in college. I self-published my first book on Amazon two years ago. I only sell about one copy a month. I'm now walking dogs on Rover while I work to get my Substack going. I'm always working to find ways to grow my income while playing to my skills to increase my net worth.
You can do the same.
🚨Problem: You Have Debt
Debt prevents you from building wealth.
Debt is the foundation of the financial system.
The financial system needs you to be in debt to prevent the debt bubble from popping.
There are many common types of debt:
Buy now, pay later
Credit cards
Student loans
Car payments
Mortgage
All of these types of debt add up fast.
Do you want to know the worst part about debt?
You're paying extra in interest.
You have to pay off your debt and interest.
✅Solution: Save More Money And Pay Off Debt
Paying off debt is tough.
You can save money while you work to pay off debt.
You'll need to develop financial self-discipline and planning.
Track Your Spending
You need to keep track of where you're spending money.
Continue to monitor your spending after the first month.
You'll be surprised how much all of your small purchases add up.
You're now laying the foundation for following a budget.
Eliminate Little Things
Start by eliminating small things.
Cutting out small expenses helps to save extra money.
Skip the daily latte, buy alcohol, and happy hours.
Learn to cook at home. Drink water instead of booze.
A $7 daily latte is $49 a week. That's $196 a month. Over a year, that $7 latte is $2,352.
Use that extra $2,352 to pay off debt.
Eliminating the small things you take for granted can help you pay off your debt more quickly.
Pay Yourself First
Before you pay your bills and buy anything at the start of the month, save money in your savings account.
Save a small amount. Even $20 a week helps.
Starting to save money helps you build an emergency fund.
Having money in a savings account means you don't rely on credit cards for emergencies.
Pay More Than The Minimum
You'll be stuck forever in debt by always paying the minimum amount.
Pay more than the minimum on your debt.
Pay as much extra as you can on your debt.
Paying more than the minimum every month helps to cut the interest rate on your debt.
The more you pay down, the faster you can become debt-free.
Find Ways To Make Extra Cash
Ask your boss for overtime.
Work a second job.
Work extra hours on a side gig.
Use coupons when you shop.
Every extra dollar you can make to save and pay off debt helps!
😎Why Does This Matter?
Debt holds you back.
Debt makes you stuck in a cycle of paying for the past instead of investing in your future.
True financial freedom is being debt-free.
Financial freedom is not about how many digits your bank account has.
🚨Problem: The Cost Of Living Is Getting More Expensive
Costs are not going down.
Everything you buy continues to be more expensive:
Groceries
Rent
Healthcare
Insurance
Transportation
The worst part is that your wages never keep up.
Your paycheck buys you less than it did last year.
You'll continue to become poorer if you're not finding ways to increase your income.
✅Solution: Find Ways To Make More Money
You can't control inflation or currency devaluation.
You can control how much you earn.
There are always solutions to increase your net worth.
Traditional Route
Ask your boss for a raise.
Look for and apply for a higher-paying job.
You can get a weekend job.
Upskill
Learn more valuable skills.
In-demand skills allow you to increase the amount of money you make.
Side Hustles
Start a side hustle. You can freelance.
Etsy allows you to sell digital and physical products.
I once calculated the amount of sales a digital store on Etsy made. I bought a couple of productivity tools from the store. I estimated the store to be making six figures!
You can start a Substack newsletter, YouTube channel, or podcast.
Build An Online Business
Use platforms to begin your online business.
Focus on building an online business on one or two main platforms that match your strengths.
Platforms have a built-in audience.
You can grow and expand once you get enough revenue and profit to scale.
😎Why Does This Matter?
Life becomes easier when your income grows faster than your expenses.
Life is easier when you're beating the inflation rate.
You have extra money that you can save in high-yielding savings accounts.
You have money to invest in the stock market.
You can invest in assets that grow in value over time.
🚨Problem: You’re Not Investing Money In Retirement Accounts
You keep all of your money in a savings account.
The problem with savings is that you're losing money.
Why?
Inflation burns it away.
The stock market is a popular strategy to beat inflation.
Investing in the stock market is one way to make your money work for you.
✅Solution: Invest In Retirement Accounts
By starting to invest today, you'll have more money for retirement
Putting money into a retirement account is one of the best ways to make sure you'll have money when you're older.
Two popular retirement accounts are a 401(k) and a Roth IRA.
Free Money
The company you work for may offer you a 401(k).
Employers often match a certain percentage you save in your 401(k).
That's free money toward your retirement.
If you save $100 in your 401(k), your employer will match that $100.
Employers will typically match up to 6%.
Why would you say no to free cash?
Taxes Can Be Your Friend
Some retirement accounts lower your taxes now, like a traditional 401(k) or an IRA.
A Roth IRA lets you take money out tax-free later.
Either way, investing in retirement helps you plan for retirement!
You can set up a retirement account through Fidelity, Vanguard, or Charles Schwab.
Your Money Grows Over Time
Every small amount adds up.
You can save hundreds of thousands of dollars for retirement by saving $75 a week.
Save your money in a high-yield savings or money market account.
You'll earn more interest than at a regular bank.
Compound interest is one of the wonders of the world.
Use compound interest to your advantage to save for retirement.
Saving For Retirement Is Easier Than You Think
You don't need to be wealthy to save for retirement.
Many savings only require you to start with $100 or less.
You can then work to build up your savings account over time.
Retirement accounts have a maximum investment amount of $7,000.
While reaching the yearly total is great, you don't have to.
Set up automatic payments to transfer money from your checking account to your savings account.
Your employer can send a percentage of your paycheck to your high-yield savings or money market account.
😎Why Does This Matter?
The time value of money is a critical concept.
The sooner you start, the more compound interest you earn, and investing in retirement accounts helps you build wealth.
You'll be happier and wealthier the sooner you start.
🚨Problem: You Don't Invest In The Stock Market
You keep all of your money in a savings account.
The problem with savings is that you're losing money.
Why?
Inflation burns it away.
Investing in the stock market is a popular strategy to beat inflation.
You fear the ups and downs of the stock market.
You don't understand how the stock market works.
Fear of investing in the stock market prevents you from making more money.
Investing in the stock market allows your money to work for you.
✅Solution: Invest In The Stock Market
You don't need to start with lots of money to invest in the stock market.
Start small.
Every amount you invest now is money that helps you build wealth.
Just Start
You don't need thousands of dollars to invest in the stock market.
Many investing sites base their projections of an investment on $10,000.
It sounds like you need a lot of money to begin.
You can buy a percentage of shares.
You can invest the amount you have into a retirement account.
It may seem like a tiny amount, but every dollar adds up.
The sooner you start to invest in the stock market, the more your money will grow.
Keep It Simple
A simple investing principle goes like this: "only invest in things you understand."
It's easy to say. It's harder to follow due to fear of missing out (FOMO).
If there is a field that you're knowledgeable about, start by investing in that industry.
Another way to get exposure to the top stocks in the stock market is by investing in the S&P 500 index funds. Many types of index funds expose you to companies in other industries.
Index fund investing is less risky than investing in individual stocks.
Be Patient And Think Long Term
The stock market goes up and down.
Over time, the stock market goes up.
Don't panic-sell when the stock market drops.
Be patient.
Think long-term about your investments.
Purchase stocks and index funds that you want to hold forever.
Your patience and long-term thinking will pay off.
😎Why Does This Matter?
The stock market makes millions of people rich over time!
The more you invest.
The faster you become wealthy.
Stop working harder.
Allow the stock market to work for you.
The stock market is just one investment vehicle for building wealth.
🚨Problem: You Rent
Renting is a temporary solution.
The problem with renting is that you don't own the property.
You're landlord does! Your landlord gets the capital appreciation and passive income from your rent.
✅Solution: Buy A Smaller Home Than You Can Afford
Owning property builds wealth.Â
You have two options when you're ready to buy a house.
Your first option is to get a mortgage. A mortgage requires a big down payment. You need a steady income to qualify and afford a mortgage.
Buy A Smaller House
Your second option is to buy a house with cash.Â
Buy a smaller house with less square footage.
You don't need a McMansion, especially if you're the only person who lives in the home.
You don't need a big yard. You don't need a white picket fence.Â
A smaller house means you'll pay less in property taxes.
You'll pay less for property maintenance.
You pay less in utilities.
Remote And Online Work
If you work online, you can move to a cheaper state or buy a home in a less expensive part of the state.
You can even move to a less expensive country with an online business.Â
You'll have more options to buy a home when you make more money.
Making more money allows you to pay for more of a mortgage payment.
Increasing your income lets you pay off your mortgage sooner.
Instead of paying off your mortgage in thirty years, you can pay it off in ten years.
Making more money allows you to pay for more of a mortgage payment.
Increasing your income lets you pay off your mortgage sooner.
Instead of paying off your mortgage in thirty years, you can pay it off in ten years.
Real Estate
Become a landlord.
Buy rental properties or a small house to rent.
You can rent on Airbnb.
You can rent to tenants full-time as you gain more experience.
Hire a property manager to supervise tenants and handle maintenance issues as they arise.
You can scale your real estate business instead of being distracted by tenants.
😎Why Does This Matter?
Real estate is a hard asset.
You can build long-term wealth by holding real estate.
Your house and property can increase in capital appreciation.
You can generate cash flow by becoming a landlord.
Real estate offers you tax advantages that you never have as a renter.
Summary
Increasing your income and net worth isn't only about becoming wealthy.
Increasing your income and net worth provides you with:
Security
Freedom
Healthcare
More options in life.
The more money you make. The less you need to worry about bills and debt.
The more money you make. The more you can save and invest. You'd better set yourself up for retirement.
The goal is to stop working for money. Make your money work for you.
Disclaimer: This content is for educational, entertainment, and informational purposes only. This is not business, financial, investment, or any advice. I write online about topics I find interesting. I make mistakes just like everyone else. Always consult a professional before making health, life, financial, investment, tax, or legal decisions.