5 Smart Money Ideas For People With Low Income3 min. read
When people think of the word investments, they are often thrown off by the idea and simply just walk away from it. Because of the big misconception that investments always demand big money since they offer big returns. Unfortunately, this isn’t always true. Since not all investments demand huge amounts of money, what are the ways you can make your small money work for you? Here are the five smart ways you can make your small money give you yields, whether directly or indirectly bringing in money to your name.
1. Set up an emergency fund
We can never stress enough how important it is to have an emergency fund. The idea behind this is that it should help you stay afloat in times you are financially distressed. For starters, experts recommend 6 months’ worth of expenses for your emergency fund. However, don’t stop there, as some people put their emergency funds in a time deposit account or money market fund to make your money grow even for just a bit. While the gains may not be that big, the important thing is that it grows even just a little—and you can pull out your money anytime soon in case you get into a tight corner.
2. Pay off your debts
Debt is debt, and you need to pay your dues whatever happens. Whether it is debt via credit cards or personal loan (which is something you need to settle fast or the interest will kill you) or some money you owe to the people you know, you need to settle them soon or else it will come back and cripple your finances. If you don’t want your future to be ruined by a certain amount of money to haunt you for the rest of your life, it pays to invest in paying off your debts.
3. Make your online presence much stronger
While most people are already hyperconnected and deeply immersed on the internet, a lot of us still aren’t fully utilizing the power of information in our screens. If you want to put a little money to something that can have a good and powerful impact on your career, you should boost your online presence—and we’re not talking about getting pictorials for your Facebook photo. Since headhunters and HR people now use LinkedIn to find you, better get a premium subscription to give you an edge over others. Meanwhile, buying a website and doing a little bit of high-quality web design, SEO, and other online mumbo-jumbo and you’re all set.
4. Wine and dine people
Since when has treating people to dinner become a smart investment? While some people may see it as a frivolous way to chat with people over nice dinner, you are actually buying your way into that person. Although it may not give back the amount you’ve spent to take them out for a dinner, making your networks grow and increase your sphere of influence will greatly benefit you in the long run. Try to catch up with mentors, old colleagues, professors, and other people who can help you in your quest to improve your circles.
5. Learn new skills
Not everything you need to know about your work can only be found in the days you stayed at the university. In fact, a lot of things you’ve learned there, you’ve probably thrown them out of the window once you’ve been faced with the horrors of adult life. However, learning doesn’t stop there and you need to continuously innovate and upgrade your skillset. While there are free online classes you can get (and there’s definitely something related to your field), there also are training programs available that you can avail of. Whether it’s leadership training or Six Sigma Green Belt certification, getting these skills will help you get a better pay in the future.
Let’s face it: not all investments can offer the same returns, especially that most of them involve a little bit of gambling. Remember, put your money in places where it will greatly benefit you, and even if the gains aren’t monetary in the future, they will help you achieve greater financial security in the longer run.