There are plenty of people that are not sure what to do with the extra money they are saving monthly. This could be due to picking up an extra job or freelance gig adding thousands to your monthly income. Regardless of the reason that you are saving, there are steps that you can take to improve your financial health. Letting your assets sit in a savings account depreciates the money due to the cost of living and inflation in general.
Let your money work for you! Below are tips for those that truly want to be financially healthy and how to use their monthly income to do so.
Take Care of any Credit Card Debts
Taking care of credit card debt needs to be done as this often comes with a hefty interest rate. Other debts might be wiser to pay the minimum on while knocking out credit card debt. The last thing that you want to do when saving extra money is to be giving it to the credit card company due to allocating the money elsewhere. Even great investments are not going to appreciate 20 percent monthly so knock out this debt.
Pay Extra Towards Your Mortgage
There are those people that have figured out how to pay off mortgages fast and own multiple properties. Mortgages do differ depending on whether the property is your homestead. Refinancing a mortgage can be a great idea as it could lower monthly payments or cut quite a bit off of your loan timeline. 15-year mortgages are popular for those that can pay just a little bit more per month while knocking over a decade off of the loan.
Invest Your Money in a Variety of Areas
The investing of money can leave you financially secure for years to come. The stock market is a popular option with many companies that are up and coming allowing people to build true wealth. Buying Amazon just a few years ago or Facebook, when it went public, would have paid off immensely. Below are a few more options to invest your money:
- Save up for an investment property by putting money in a low-yield bond that actually creates income monthly or quarterly.
- Invest in yourself by furthering education or doing something that can help you excel professionally. Investing in yourself can result in huge professional advantages and potential promotions.
- There are a plethora of platforms that allow for smaller investments to be made in properties or startups, take a look at these options carefully.
- Flipping products online has become a popular way to invest money if you are patient as well.
The stress of financial uncertainty can be eliminated when saving money monthly. The best feeling in the world to those that have been in debt is not having to worry about a monthly bill. This peace of mind cannot have a value put on it. Use the above tips to get the most out of your money and leave your financially secure well into the future.