Are you trying to increase your money at the moment? Is this a current target you are working on right now?
There is a good chance that you are doing this because of the pandemic. But people have been trying to do this even before for a number of different reasons. Some people want to prepare for early retirement. Others are trying to pay off their mortgages in record time. Some parents with college-bound children are trying to put in as much as they can into the college fund.
Trying to identify ways to improve your finances is easier said than done. CNBC even shares that about 32% of working Americans run out of money before their next paycheck. This is a very challenging starting point for a lot of people. But the idea is to use this as a springboard to do better. You can tap into this challenging time and use that to motivate yourself.
Once you decide on this, trying to increase your money could be at the top of your list. This helps you address numerous financial problems you could be experiencing. It can be as simple as trying to replace a broken refrigerator at home or trying to catch up with all your credit card payments. An increase in your income could help you solve these problems.
Increase your money by doing the following
There are a number of ways to help you manage your money better. Remember that the desired result is to improve your finances and not to put you deeper in debt.
Automate your money
One of the strategies you can do right at this moment is to automate your savings. This will be most effective if your financial problems come from mismanagement of your money. You might have more than enough to cover your expenses and save but you are not doing it. There could be a number of factors that lead to this problem.
One scenario could be spending your money even before you get the chance to budget them. You start spending left and right as soon as the money hits your account. In these instances, you can automate your savings so they go into separate accounts before you even use them. One can go into your retirement savings, another one can go straight as mortgage payment, and so on. The idea is to take advantage of automation to help you budget your finances and pay for accounts with the same payment amount every month.
Shift to a high-yield savings account
One smart way to increase your money is knowing where to park your money in the bank. A lot of people think that all savings accounts are similar. But there are high-yield savings accounts you might be missing out on. This type of account can help you earn more for your money simply by parking your funds in the bank. Talk to your bank to help identify what their high yield savings account is what they can offer. Compare it with a regular savings account and see the difference.
Be open to side gigs
As the health crisis started, a lot of people found their employment in peril. This is simply because most companies were trying to drastically cut down on operational expenses to stay afloat. This has resulted in a shift in the job market. Now, it has paved the way for a lot of freelance work. Both from the employer and employee side.
Since a lot of companies are trying to lower operational expenses, they cannot hire or maintain as many full-time workers as they need. On the other hand, there are a lot of people looking for part-time work. This is because they want to either augment their monthly income or they were let go from their employment because of the pandemic.
This is one of the top reasons why there are a lot of side gigs at this time. There is a demand for it from several companies and at the same time, people are in need of side gigs. If you are having trouble looking for one, a good place to start would be with your hobby. Find a way to turn your hobbies into an income-generating venture.
Why is it Important
At this point, you might be wondering why you need to increase your money apart from the current need you have due to the pandemic. Here are some of them worth looking into.
To achieve your financial goals
Increasing your income can help you reach your financial goals a lot faster. Take your mortgage loan payment for example. If your target is to pay it off at record time, the way to do it is to put a big down payment on the property. If not, you can make extra payments over the next few years to help you pay for it much faster.
Early retirement is another goal you could have at this point. It excites you to just think about all the activities you have planned for retirement. One way you can achieve this is to save as much as you can at present so you can retire early in the future. If you get to increase your money now, you can put it towards retiring early. You can max out your 401k every year and fund other IRA accounts. You can also put that money into investments that will help support your retirement in the future.
Support you during the financial crisis
This is not the last crisis you will go through in life. That being said, you need to prepare the next time it happens again. Financially, you can strengthen your emergency fund to help you get through these hurdles. Once you start saving for your reserve funds, there are a lot of tips on how to get started. They even tell you the amount you need to aim for.
You can look at all these suggestions but the most important thing is to just get started with it. If you are just starting out, it is far more crucial to create the habit of saving money. For this to work, aim for a manageable amount to start with. Once you reach it, then increase the target. As you do this, you get mental wins in achieving your goal and you develop the habit of saving for future needs.
Good for your mental health
There are a lot of people who had to endure a number of mental health issues during this crisis. This is on top of the financial problems they faced. In fact, a lot of people blame their finances for their anxiety issues. CBS News shares that about 70% of consumers struggle with at least one aspect of their finances like paying bills.
This means that if you are able to improve your finances with an increase in your income, you get to improve your mental health as well. This can give you a better chance of coming out of this health crisis on top with your finances intact.
It will definitely help your finances if you can identify ways to increase your money at this time. It can give you the breathing room you need to catch up on your payments. It could also help you get back on track with your financial goals. Identify ways to bring in more funds into your budget and work on it.