Making Money Work for You

I want to take the opportunity to begin next week's topic today.  I've entitled this week's discussion "Making Money Work for You".  I think the biggest hurdle people must overcome is to get themselves in a position where their money is working for them and not against them.  As one simple example, it's difficult to increase your Net Worth when one is paying more in bank service fees and credit card interest charges then what you are making in investment interest and dividends.

There are many great resources related to money savings tips.  I'll share some of these resources this week and discuss how these ideas can be used to help utilize the saved money for advancing your Net Worth.  One helpful resource that I have found useful is BCS Alliance.  Scroll down a bit and notice the Debt Management section on the BCS website. You'll find some good information regarding saving money in many areas of your life.  The ultimate goal is to put this "saved" money to use so that it can begin making money for you.

There are obviously many ways to put free'd up money to work for you, but, perhaps the most significant ways revolve around the kicking of a bad habit.  Not only will one improve their health, but will also have the gift of a couple thousand extra dollars each year for other purposes.  Cigarettes and Starbucks habits are the two big ones that come to mind.  At $3+ a pack, a person could save about $1,200/year if they stopped smoking one pack a day.  Discontinuing daily Starbucks could put another $900/year in your pocket.  That's two grand that can be invested a year.  With the power of compound interest, $2,000/yr will add up nicely.

These are just a couple examples.  We all have our own way of cutting expenses and saving for our future.