The question of how to multiply your money is almost everybody’s question.
Here I’m going to explain how to manage your income and expenses in the way that you can multiply your money guaranty.
- The first step is to make sure you have an income
- The second step is to check if your income is enough, if not; how to increase your income?
- If your income is not enough, you should plan to find the second source of income, such as: (selling something and get a commission, create new products, learn something new to increase your knowledge and so on).
- Eliminate distractions that stop you from moving forward to success such as spending too much time on: (Social media, TV shows, Playing games, Partying, and sleeping a lot).
- Try to increase your productivity, skills, and creativity in your spare times
- Set Goal, without goal setting you can’t move forward and motivate yourself
- Make a plan, always make your plan and write down each step, the time frame (start and end) of each step and the process and cost
- Get to work
- Stick to it, no matter how many times you fail, you should keep trying until you reach your goal and never give up.
- Reach Goal
- Keep growing and multiply your money
1- Learn How To Save $$$
We all should know how to balance our income with our expenses and this is a very challenging skill that many of us don’t know how to do it.
Let say if your income is $180K per year and your expenses are $200K per year, you are short $20k each year!
At the same time, your neighbor is making $60k per year, but spends only $50k per year and saves $10k per year because that person knows how to balance his/her income with its expenses.
Here is some advice to go over your expenses and eliminate some less important elements.
If you are a business owner, you can save up a lot by doing some research and negotiations with suppliers and service providers.
For example, the Interact device that your financial institution provides is usually charging per transaction, plus a monthly fee for the device renting. If you have a lot of transactions you have to pay a big percentage as a service charge for that device.
However, if you are know how to use technology, you can go to Best Buy and get a debit and credit card reader for $250 one time payment and just connect it to your bank account via the internet without any monthly charge.
That was only one small example of how to save some money.
Moreover, you can change all your light bulbs and electrical devices to low energy costs to save a lot from your electricity bills.
Negotiate with your cable company if you’re a TV lover, or just buy a TV box from amazon which already programmed to watch your pre-recorded favorite shows for free.
2- What Investment Plan Should I Take?
Try to invest in any type of investment, because with just a small saving your money won’t multiply within a certain period if you don’t put it in some kind of investment.
If you keep your money as it is as saving, the money value will decrease by the time and your savings worth nothing in the future, so it’s better to be smart and put your money in some kind of investment.
The short-term or long term investment is not a matter in this case and it all depends on your plans.
Many many investment plans exist on the market all based on your ability everyone should invest in some kind of growing and secure investment plan.
Here are some investments were:
- Invest in Real estate
- Business leverage shares
- Invest in a business
- Mutual Funds and bonds
- Long term investment account at financial institutions
1- High risk with low return
2- Low risk with low return
3- High-risk high return
4- Low-risk high return
The Rule of 72 in Investment Returns to Double Your Money
The rule of 72 which is how long does it take you to double your money.
Whatever interest you will get within a year, you should be divided by 72.
If I get 72% of my money it will take me one year to double my money, and if it’s 36% of my money it will take me two years to double my money.
So, you have to do the math before putting your money in any type of investment.
Rule 105 In Investments, How long will take To Triple your money
Also, rule 105, which is; how long it will take to triple your money.
Which you should divide your interest you’re getting with 105.
Examples of Investments in more Details
When you can save 10% of your yearly income, you can tell that you are on a good track because this is the average saving plan for every individual.
Real estate investment is a long term investment and at the same time could bring you some passive income by renting it out if it’s residential or business real estate.
I do believe that every individual should invest in some kind of stocks, however, they should not put all their eggs in the same basket and it’s better to invest in several stocks to win.
Business leverage share is one of the other smart ways of investing because you are owning a part of big business and become a shareholder of a bigger business.
Mutual funds and bonds are another low-risk investment with low returns. If you are very careful with your financial situation it’s better to invest in mutual funds or bonds to be safe.
Long term saving account investment is another way of low risk and low return way of investment.
You will get a small interest rate on the amount of money you invested at the financial institution and many people are making living just based on their investment interests.
3- How To Balance Income and Expenses?
Many people less than 40 years old have less than $1000 in savings. That means at the age which you just finished school and started the life you’re saving is not much because your expenses are high at that age range.
The best way of balancing your income and expenses is to make more money and spend less.
How Do Income and Expenses Balance Works?
If you are working from 9 to 5 and making $20 per hour for 40 hours per week, your weekly salary is $800 before taxes.
The salary should be okay for a single person who has no responsibilities or debts. But imagine if you have a family or parents to take care of.
However, many single people can’t balance their income and expenses because they are spending so much on unnecessary expenses and they end up broke a few days after they cashed their paycheck.
Here we are talking about average regular people who have to pay just the rent or mortgage, utility bills, clothes, entertainment, and food.
- You should find a second source of income; which can be selling something online or in-person after work, work as a Uber driver for a few hours after work, doing delivery and so on.
- Negotiate your utility bills; Call your cable company to get a better deal or just move your services to another provider. Get a better phone plan deals and so on.
- Don’t waste your time on entertainment; Partying, TV shows, Social media and so on.
- Don’t get unnecessary insurance plans; When you are struggling with your income and expenses there is no point in having additional insurance payments such as credit card balance payment insurance and so on.
- Renegotiate every single contract you have such as; Internet, phone bills, insurance, cable, hydro and so on.
- Stop buying brand name products; At certain ages, we all love to go to high-end restaurants and buy brand name clothes and accessories, you should be smart enough to stop spending money on those high-end brands and shop from other similar brands and pay less.
4- Saving on Taxes
Always check the taxes that you have to pay. You have to make a plan with a financial adviser to put your money in such an investment plan to pay fewer taxes.
You might move to a place where the taxes are lower and the salaries are the same or more than where you’re living now.
Having an RRSP is another way of saving on taxes and having a safe retirement plan.
5- Knowing Your Identity (Values)
Every individual has it’s own price. That can be in salary, lifestyle, marriage and so on.
In this case, we are talking about the lifestyle and your salary values.
Means, we put a price value on ourselves based on our capabilities, education, class value and so on.
For example, if you’re the last salary was about $30K per year, you most probably will settle with a job for $5K more or less because you’ve got used to living with that much of salary.
Moreover, if your salary was $300K, you won’t accept a $90K salary and will try to find the right place of work until you find it because you know what your values are.
That type of lifestyle is your identity and shows your values and worth. A company that will hire you with such a salary, already knows how much you’re worth and they will count on you based on your identity.
Although many companies are taking advantage of hiring new immigrants who are highly skilled with a good portfolio and experience they are looking to get work experience in their new hometown, they’ll find out their values and set their identity soon after they’ve got what they were looking for.
6- Use Technology As Much as You Can
Nowadays, the use of technology is a must for almost every single enterprise or business.
You can just buy software to do your schedules, booking, accounting and so on without paying so much for the individuals to do it.
The usage of technology will increase the speed of your business process which will be the result of customer satisfaction and more production and more money.
It might cost a lot at the beginning but in many cases, it’s only one-time purchase payment and the device is yours forever.
However, for some software licenses, the company should pay for the yearly renewal or update of the software which is worth it.
Using Technology for the Environment Safety
You can also, use the power of the internet and outsource all your accounting and secretarial without renting any physical space in which you have to pay the utilities, taxes and staff members as well.
Use online marketing to do your advertising which you can reach more audiences within a short time and much cheaper price.
The usage of technology will also help with the environment and pollution as well since many new companies are outsourcing their staff and they are working from home using the internet.
They don’t have to drive to work, faxes are sent via email faxing system, all the notes and important letters will be sent via email and that has a very good and positive impact on our natural environment safety.
Billions of emails and faxes are transferring via the power of the internet (thanks to the technology) each day without killing any trees to make papers.
Many many money transactions are happening each second all around the world without seeing any physical currencies which is another environment safety which can save a lot of time and money for businesses.
Moreover, if you want to double your money within a short time and a good outcome you should use the power of technology to be successful with trust.
7- Hire Few Expert Employees and Pay The Higher Salary
Human resources are very important in any business and if an entrepreneur wants to save money, it’s better to choose the right staff members.
Experienced and knowledgeable staff members are the heart of any business.
I do believe that the business owners and management team should try to keep their experienced employees and give them a fair salary raise every year to not lose big money training and hiring new employees.
Bad management is when they are refusing a small raise to their existing employee and when that employee leaves they have to hire someone new and train them again.
Hiring fewer but experts are much better than hiring many who does small tasks each individual.
However, some entrepreneurs are believing that they hire more employees with lower salaries, that they can back each-others up in case of emergency and shortage of staff.
Smart entrepreneurs are hiring a few expert employees, pay them higher salaries and uses the best technology to speed up the production process with the best quality of service.
By doing this, the employees are happy, and also the consumers are happy as well because speed is money in any type of business.
That was the seven ways to multiply your money when you are investing in any type of business or investment.