Making your money work for you is an important step to take on the road to financial security and independence. If you’re fortunate to have a bit of extra income that isn’t budgeted for expenses and you’re wondering what to do with it, here are 3 ways to make your money work for you.
1. Create Specific Financial Goals
Creating a financial goal is the first thing you have to do if you want to deploy your money to a channel that will multiply. You have to ensure that your financial goals adequately benefit you in the long run.
Setting goals like buying a house when you are a certain age or at a certain stage in your life, early retirement, relocating to a new country or even a new apartment, buying a car etc., can be achieved by having a stream of passive income.
2. Grow your income by investing
Investing is a really great option to expand your financial portfolio and grow your money. There are various instruments and assets you can invest in depending on your capabilities. The safest and most secure investment plan is Treasury bills. Other great investment plans are investing in the stock market, mutual funds, real estate, or a start-up.
3. Consider opening a fixed deposit account
A fixed deposit account is different from a savings account and a current account because it is an investment account. With a fixed deposit account, you are not just saving your money, but investing it (fixed deposit) with an agreed interest rate within an agreed time frame (tenure).
Having a fixed deposit account provides a higher interest rate compared to having a savings or current account. You get your capital plus the interest upon maturity. Depending on what you want to do with the money, you can choose to roll over the capital and take the interest or roll over the capital and the interest or not roll over upon maturity and just liquidate.