When it comes to making your money grow, there are no magic secrets. If there were, you surely would not be able to Google them and read them online. Jack and the Beanstalk was only a fairytale, but you still can make your money grow if you follow some tried-and-true strategies.
One way to make your money grow is to make more money. Author and self-made multimillionaire Grant Cardone said in Entrepreneur online that the wealthy have a certain mindset. They are not motivated by fear and scarcity; they do not finish all of the food on their plate because there are starving people on Earth. They focus instead on what they can contribute to the world, and they study other multimillionaires to find out what motivates them. Multimillionaires also think about time differently. They buy it, not sell it. They work only on what they are good at and hire people to do chores that take time from their goals.
Pay Yourself First
Before you pay any of your bills, pay yourself. Determine a percentage of your paycheck that you want to keep for yourself, and put that into a savings account. It usually works best if you set this up through automatic deduction. Financial expert David Bach said on CBS News to pay yourself one hour’s worth of income every day. It pays off to do this while you are young; if you wait until you are 40, Bach recommends paying yourself two hours' worth of income a day, which is a difficult pill to swallow for most folks. Another way to calculate how much to save would be to shoot for 12.5 percent of your gross income. Most people save only 4 percent, which typically works out to 22 minutes of income a day.
Start investing. Once you get some money saved, you can invest it. Diversify your investments by putting some money in bonds, some in stocks and some in real estate. Bach says a multipronged approach doubles your money every five to seven years. Don’t fall for get-rich-quick schemes that seem too good to be true -- they are often scams. Bernie Madoff’s Ponzi scheme was one of the biggest such scams in recent history, and Madoff is not the only dishonest person out there. If your goal is to make money, steer clear of fast-talking dealmakers.
Higher Interest Rates
Instead of putting your money into the most convenient savings account, shop around for a better deal. Online banks sometimes offer higher interest rates. Bankrate offers a service online in which you can compare rates offered by different financial institutions. If you are willing to lock up your money for a certain time, typically six months to five years, you can put your money into a certificate of deposit; CDs have higher yields than savings accounts.
About Credit Cards
Turn your credit card from a money sucker to a moneymaker. If you pay off your entire credit card balance each month, you save money on interest charges. If you have a rewards card, you can earn points on the purchases you make. Once you get enough points, you often can redeem them for cash or goods.
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