Working people often wonder if there are effective techniques for creating and securing their hard-earned money. Fortunately, there are numerous methods that deliver good results for diligent people who are willing to make sincere efforts. One of the big fallacies about making money is that there are secret formulas for becoming an overnight millionaire. Authors and various hucksters earn plenty selling bogus schemes that promise a fast path to riches. In the real world, it takes time, sacrifice, and a modest dose of luck to accumulate vast amounts of wealth.
However, just about anyone can incrementally add to what they already have and secure their savings without secret plans or magic formulas. In addition to adding blue-chip, dividend-paying stocks to a long-term portfolio, smart investors usually cover kids’ college expenses with personal loans, start side businesses from home, get excellent financial advice, and stay far away from well-known money pits like tobacco use and get-rich-quick investment schemes. Consider the following approaches for solidifying what you already have and possibly creating more wealth over the long haul.
Earn From Dividends
One of the most boring of all money-making strategies is adding dividend-paying, blue-chip corporate stocks to a portfolio. The aristocrat shares pay regular dividends and are among the most stable corporations in existence. To maximize financial growth, don’t take the dividend payments. Instead, set your account to automatically reinvest all dividends directly into more shares.
Be Smart About Paying for College Expenses
For moms and dads who choose to help out with their children’s college expenses, there are wise and unwise ways of getting the job done. The most financially efficient method for sending kids to college is to apply for a low-interest private parent loan. These loans give you the chance to take on the burden of college costs so graduates won’t enter the workforce owing on multiple student loans. Of course, it’s up to you to decide precisely how much of the amount to borrow in your own name.
Start a Side Business
Starting a part-time, home-based business is the backbone of many financial enhancement programs. The beauty of this strategy is that you can choose whatever kind of online or traditional work you prefer, work any schedule you like, and choose to devote any number of hours to the endeavor. Some people trade securities through brokerage accounts, while others earn extra cash by tutoring, serving as e-commerce resellers, or offering consulting services.
Pay for Financial Advice
Often overlooked by the DIY crowd, hiring the services of a professional financial advisor is one of the most powerful methods at your disposal. CPAs (certified public accountants) and CFPs (certified financial planners) are the go-to experts in this field. Rates are reasonable, and you can learn how to do any number of important things, from creating a detailed monthly budget to planning for retirement. These pros can give you targeted tax advice, show you how to start your own business, help with monthly money-saving tips, and more.
Avoid the Four Wealth Killers
Don’t let the well-known money eaters whittle away at your assets. What are the big four wealth killers? In addition to tobacco use, they include taking part in risky sports and hobbies, not monitoring your health with annual medical checkups, and impulse buying. Always speak with your doctor about health-related issues and how to catch physical ailments as early as possible. Regular checkups are a low-cost way of making certain you stay on top of your physical well-being. Tobacco use is a double-whammy of negativity in that it’s not only unhealthy but also a waste of money.
Photo by Morgan Housel