We all want to be a bit better off, don’t we? Well, although not everyone can be filthy rich, being better off is actually easier to do than you might think. It takes a lot of hard work and a change of mindset to make your money work better for you, but it is possible. So, if you want to improve your financial health and wealth, read on to find out what you need to do.
Good debt and bad debt
The first step is to understand the difference between good debt and bad debt. Good debt can help you get further on in life, and allows you to buy homes, cars, and build up a solid credit rating. However, unless you can actually afford the debt, it will often turn bad. Bad debt is anything that you will struggle to pay back, and it can quickly spiral out of control. It is essential that you clear your bad debts before moving onto the next step. If you want some advice, you can find some in our handy guide.
The next step is savings. You should only start a savings account if you have cleared your expensive debts, as you will effectively be losing money. Look into high-interest savings accounts that will give you a bigger return. One thing to remember is that these accounts will usually not allow you to access your money, or will charge you for doing so. With this in mind, it’s best to leave it there and forget about it. And, once your restricted period is up, you should have a nice chunk of return.
There are three main areas you can invest in: stocks, bonds, and cash. However, you should never play with money that you rely on, as anything can happen, and you risk losing everything. That said, bonds are usually quite safe investments, although far from exciting. If you are looking for more glamor, try the precious metals market. You can even get started from your own home with services like ACM Forex. They act as a broker and provide software that you can use to buy and sell your gold stocks. There are dozens of different services for different stocks and commodities, so have a look around and choose the one you are comfortable with. And, once again, please be careful of losing all your savings.
Of course, one of the best ways to protect your money is not to waste it. By developing a different mindset, you will be able to start noticing areas where you are a little too happy to spend. It all begins with the little things. Buying lunch every day at work? Pack your own home and save around $50-100 a month. By the end of the year, that could mean the difference between a camping trip and a more luxurious vacation. So, bear that in mind the next time you stop at McDonalds for your breakfast.
Got any financial tips you would care to share? Let us know in the comments below!