Make Your Money Work Harder for You 

Almost all of us need to work to make money, but there is no reason that we can’t then make that money work for us, helping us both look forward to a brighter future – especially when it’s time to retire – and live a little better now. How? Here are some pointers to get you started:


Start Saving


The biggest key to make your money start working for you is to save it. Obviously few of us can afford to sock everything we earn away in the bank, or in investments, but making a commitment to saving a reasonable portion of every paycheck is not as hard as you might think.


According to Edward Lake, a personal injury lawyer, “To determine that amount you need to create a real and honest budget. Sit down with you bank and credit card statements and pinpoint just where your money is going every month right now. When most people do this (and you don’t need fancy software, a pen and notepad will do) they are often surprised (and shocked) by just how much money they waste. Chances are that by cutting some of the truly unnecessary expenses – the coffee shop frothy coffee that you buy every morning, the Wednesday night visit to the drive thru – you can find money to save.”


Save in the Right Place


There is more to saving successfully, especially for a longer term goal like retirement than just putting money into a standard bank based savings account. Money needs to be active rather than passive. Opening a dedicated retirement account can, if set up properly, shield your savings from much of the tax burden that can be associated with a standard savings account. You may also want to consider venturing – carefully – into the world of active investing, which is easier than ever these days and another great way to keep that money working.


Keep Those Savings Snowballing 


As interest and investment income begin to swell your savings it can be tempting – very tempting – to begin dipping into them ahead of the goals you had set for them. In an emergency, this may be a path that has to be taken, but unless that is the case resist. The larger your savings grow the more they’ll earn for you, so exercising patience and self-control will pay off even bigger in the end.


Creating a Passive Income 


Most of us wish we had a little more time to do what we want rather than what we have to, especially when it comes to time spent working. Not to cruise the world perhaps but at least to spend a few more days a month paying real attention to our families. And if you save and invest for long enough it’s possible that those savings can become a passive income that can help you more easily say no to the boss when they ask if anyone is up for overtime this weekend.


In order to do this, you need a savings system that is generating regular returns, so this money will usually be that that is funding an investment account. Investing today is nowhere near as complex and expensive as it was. You may still need help from the professionals to get you started – especially if you want to get into something a little more complicated like offshore investing – but that help has become far more accessible and affordable to the ‘average’ man or woman, making it a savings choice that is well worth anyone taking a second look at.