Smart Ways to Make Your Income Grow

It’s very tough to survive on a salary that comes from a regular 9AM-5PM job because your money will eventually run out. You also can’t rely on your savings often because these are supposed to be stashed for an emergency. The best way to increase income is to have both active and passive source of revenue. In today’s article, I’ll be sharing some tips on how to let your money work for you so that you can live financially free for the rest of your life.Especially with what Covid-19 has done to affect our daily lives, our income is not guaranteed as well. Companies are currently laying off people or cutting salary. You should always think of ways to get a passive income in case things go south.

Create a Budget

The first step is to create a budget. The cardinal rule is to have three funds, namely for your expenses, emergency funds, and investments. A big chunk will go to your expenses while the rest are split between your investment fund and emergency fund.

Make Your Money Work for You

Now, let’s talk about your investment fund because this is the fund that can help increase income in a breeze. Your investment fund is the money that you will use to invest in various mediums for the long term. This will allow your money to grow over a period. Let’s take a closer look of the mediums where you can invest your money efficiently.

1. Stocks

When people think of the stock market, they immediately believe that it’s too risky. Yes, it is risky to put your money in stocks since they change constantly. However, if you know how to play the odds, then you need not worry. The key here is only to invest in blue chip companies and wait for their prices to reach a target price that you want.

You may also want to try out some ETFs (Exchange Traded Funds). ETFs are ideal for long term investments because they only focus on the best blue chip companies in the stock market. For example, Singapore has STI (Straight Times Index) ETFs made of 30 of the biggest companies in the country. Investing via STI-ETF is very safe because you’ll be putting your money in these big companies that have a low to zero chance of being bankrupt.

2. Rent

If you have a condominium unit or HDB flat (a flat managed by House and Development Board), you may rent it out to people. You might be asking yourself at this point, where you’re going to live if you rent it out. Well, a lot of people buy flats to rent out for a year or so and live in their parents’ or relatives’ house meanwhile. After they got a substantial amount, they move in. This strategy is an excellent way to earn a lot of income in a short amount of time. Furthermore, this tip might actually work since Singaporean people are known to have strong ties with their families.

3. Annuity

The last method to increase income would be through annuities. Annuities are fixed amounts that insurance companies offer to their subscribers for availing one of their policies. This is the safest way to get passive income because it ensures that you can get something every month. You also can’t pull out your money until after a few years. This will prompt you to save and not just spend anyhow.

To escape the rat race of having to live on your salary, you must have passive income as a means of boosting your revenue without compromising too much of your time. Through these mediums mentioned above, you can make your money earn for you and watch them grow through the years.