As ironic as this may sound, the first step to making more money is to actually have more money. You may have already heard that the first million dollar is the hardest to make and I believe this statement to be quite true. The premise behind this reasoning is that more money equates to more investments.
There-in poses the question: How can I start making more money for investments?
The answer to this question is that you will first need to increase your base income. Here are 3 simple ways to do just that:
1) Get a better paying job
If you are working 40 hours a week at a job that pays you close to minimum wage, then it is time for you to consider other employment. It will already be a miracle if you can make ends meet let alone have extra money at the end of each month to put into your savings account.
2) Make small investments
If have just taken an interest in improving your finances, you may not know where to begin investing. Start small by purchasing mutual funds in your tax free savings account. A managed portfolio with a reputable bank will on average provide you with a return of 5% to 8% in a year. As your financial knowledge increases, you may find yourself moving away from mutual funds and into stocks, index funds and real estate.
3) Start a side business
It is extremely difficult to get rich as an employee. Tap into your inner entrepreneur and start up a business in something you love to do. A blog or an online business may not be such a bad idea as it doesn’t require any start-up capital.
There you have it, 3 practical tips to help you start making more money especially if you are new to personal finance. As you begin to make more money, you will find yourself with more resources to make larger investments.
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