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Making money or saving money: Which one should be your first priority?
Today’s Chief Money Man article comes from a guest contributor, Patricia Sanders. Patricia is a financial content writer and has been praised for her effective financial tips that can be easily followed. Her passion for helping people who are stuck in financial problems has earned her recognition and honor in the industry and I love her writing style. Besides writing, she loves to travel and read. I’m happy to welcome her as our first 2019 contributor to the Chief Money Man. To get in touch with Patricia (or if you have any question regarding this article) email her at sanderspatricia29@gmail.com We all want to make money to pay our bills and enjoy; it is the fact of our life. But only making money is not enough. You have to set aside money for the time when you will not work anymore. Thus, you should save a portion of your income. However, only saving money too is not serving the whole purpose. Thus, it is better to both make and save money. Making more money will help you to save more so that you can secure your financial future. If you don’t make more money, then you will not be able to save after paying your bills. Also, if you only spend money instead of saving, then one day you will not have a single penny so that you can pay your bill without doing work. Since both making and saving money is important. We should also know how to make more money and how to save our hard earned money. Here you go: 6 Ways to make more money You should work hard to earn money whether in your office or in a business. However, these days the prices sky-high. So, you have to earn some extra money so that you can afford what you need and also save a portion of your income. So, the ways in which you can make extra money are: 1. Make investments to grow money Another great way to generate extra income is investing your money in different investment vehicles. However, you should be aware of some investment strategies. Investments can help you to grow your money fast. Thus, you can achieve many financial goals. If your investment works great, then you can achieve financial independence as well. There are various such investment vehicles through which you may be able to earn some extra money. For example, stock investment, forex investment, gold investment, real estate investment and so on. You will have to invest your money in any of these options, the one that you think is more comfortable for you. You should also seek expert’s opinion to avoid loss in an investment. 2. Selling things online or offline You can sell some items both offline or online. If you have a tendency to make new things like food items or craft materials, you can sell them in your neighborhood or online. With time, your popularity will increase and thus your earnings will increase too. 3. Consider online or offline Tutoring You can also offer to tutor online or offline for the students. Online tutorials have become very much popular nowadays and so if you have a knack to teach, you can submit your questions and answers for the help of the students. For this, you will get paid. 4. Become a freelance blogger You can also make money through freelancing or blogging. If you think that you have a unique writing style and if you are original, if you have a flair for writing then both freelancing and blogging are great ways to make money. 5. Get a seasonal job There are many seasonal jobs that give opportunity to earn some extra money. So, if you have time, then you can consider seasonal jobs like photography, retail jobs, social media assistant. 6. Participate in market research surveys If you think that you have some opinion on the things that are happening, you can get paid for voicing it. There are many such companies who pay you for voicing your ideas. So, this is an option to make good money. Different companies depending on the services offer maximum or minimum payments. So, you need to find out the payment details before starting with a company. 9 Ways you can save your hard-earned money If you wish to save money, then you should remember that it needs your full dedication and commitment. Once you learn to save you will be benefited in many ways. Saving is within your grasp and if you are sincere you can learn how to do it in a very short while. Some ways in which you can proceed towards savings are as follows. 1. Set up a personal budget You need to formulate a budget if you want to save money. When you form a budget you calculate both your total income as well as expenditure. After this, you are to subtract the total expenditure from the total income. The amount that is left behind is the amount that you will have left to pay off your debts. You have to categorize your expenses and every time you spend something you are to put in the amount in the budget. This helps you understand how much you are spending and where you are spending it. It provides you with a clear picture of your finances and thus helps you control your spending. This, in turn, helps you save. It also helps you identify areas in which you can save. 2. Purchase things in bulk To save a lot on your groceries you must purchase in bulk. You can also save by planning all your meals in advance and purchasing all the things that you would need over the month in bulk. Foods that come prepared are always more expensive than the generic food items that you can purchase. Another advantage that you get by planning your meals and by purchasing in bulk is that you get to be accurate when it comes to budget planning. Thus, you save money when you are buying a lot of things together and you also get to plan your budget systematically. This also helps you to survive when it comes to emergencies. The one aspect that you have to keep in mind is that the products that you buy do not go bad before they are used. It is important to ensure this because if the products go bad, then the money that you will save in the purchase will be of no use. 3. Shop wisely When you go out shopping you should try and not restrict yourself to buying from a particular store. Try to explore markets, supermarkets, local shops, marts as well as stores. Farmer’s market is also a good place from where you can purchase products and save a lot of money. This is because you are buying the products from the producers, directly, which means that there is no middleman involved in the process. Thus, you save on a lot of money. You can also purchase in bulk from such markets. In case you are buying products that are not available in the farmers market, then you should try and compare the price of that particular product in at least a few stores. This is to be done to ensure that you get the best possible rates. 4. Eat at home One of the major expenses that you incur every month is on food. Thus, this is one area where you have the possibility of saving a lot. You should try and eat at home than outside. Try to carry lunch from home and avoid fast food joints. By eating in you not only ensure a healthy financial life but also a healthier physical life. This is because eating it would be much more hygienic and fulfilling than eating out. 5. Reduce cell phone bills You will have to try and lower your cell phone bills. In addition, you can even try to lower your electricity bills. Lots of dollars get wasted on high electricity and phone bills. 6. Avoid excessive use of credit cards You will also have to lower the usage of credit cards to save more money and work towards debt reduction. Credit cards are mainly for emergency purposes and so it is better to keep your plastic money for that purpose. To lower the usage of credit cards you will have to try and lower your expenditures and use cash that you have in your hands to make your everyday expenses. 7. Use discount coupons Another way to save money is using discount coupons to buy the items that you need the most and that too in large amount. 8. Spend less Cut down on all your unnecessary expenditure. Before you spend on anything review what you are spending. To do this you can choose from various options. Cutting down on certain expenses will not be very difficult for you as you definitely make certain unnecessary expenditures that you can do without. Instead of buying books or CDs you may opt for renting them. If you desire to buy something that you will not need, such as some luxury item, then you should wait before you buy it. You will realize that if you wait for the desire or the craving to buy it will leave you. This also helps you in saving money. 9. Avoid high interest rate debt To save more, you should also avoid debt; especially higher interest rate debt. If you have highest interest rate debt, and you are making only minimum payments, then you are losing money on the interest rate. So, You should follow a proper debt repayment method to pay off your debt as soon as possible. Remember, both, earning more money and saving more money will help you to avoid financial stress. Making and saving money can also help you to achieve financial freedom earlier. So, if you don’t want to stretch your working life, you should prioritize on making and saving money simultaneously. Patricia