How Can You Make Your Money Work Harder For You? - Forbes

Making your money work for you essentially means to use your money to make more of it. And while this might sound like a bit of a conundrum, there are a gamut of financial decisions that can help you do this. 
Before embarking on a journey to save, grow and invest your money, there are certain steps that must be followed to lay the groundwork. 
As dull as it may sound, creating and sticking to a monthly expense plan is key to making your money grow. It not only helps to determine where you are spending your income but also helps you to change the way you manage your money. The ultimate goal is to spend less than you earn and keep track of where unnecessary expenditure is being made. 
Budgeting isn’t a one-time action; it is a continuous process of engaging with your expenditure habits every day. It involves: 
The idea is to keep a track of where your money goes in order to control it sensibly. If done right, budgeting is the real first step towards financial stability. 
Debts can trap and halt your financial growth in a negative way, which is why getting rid of debt or reducing it to the bare minimum is crucial. When a person is in debt, they end up paying more than the cost of the original purchase price. There is also the burden of interest payments that can eat into one’s income. 
Debt curtails the choices one can make towards savings and investment and it is therefore best to eliminate it all together. Having debt means to be stuck in a vicious cycle of earning and losing money even before you have had a chance to enjoy it. 
This is easier said than done, for those who are feeling stuck and unable to achieve this, the trick is: 
Investing money is akin to making it, it is a long-term strategy for building actual tangible wealth that can be utilised as income later on. There are several options to grow money through investments: 
Stocks 
High-Yielding Savings Account
Real Estate 
With the advent of social media, there are more ways than one to achieve financial stability and security. Online content creation, voice-over work, freelance writing gigs, part-time marketing, are just some of the options that people can explore to generate some additional income. This money can be a surplus to your staple monthly income and can thus be solely directed towards savings and investments.
If you are charged more tax than you are actually liable to pay then the excess amount is made available as a tax credit. This credit can later on be adjusted against any future tax liabilities, i.e. the credit is entirely deductible from the amount of tax you have to pay, and this is regardless of the tax bracket you fall into. So make sure to claim your tax credits. 
Although this might sound slightly trivial, earning cash just by spending the money you normally would is always a bonus. Rewards cards work best when you pay off your balance each month. But remember to avoid making extra purchases just to get rewards points because that defeats the purpose of curtailing unnecessary spending. 
Being financially disciplined is a long-term exercise and every small prudent decision can help go a long way. Take for example the simple act of paying credit card bills. People often either pay it in advance or after the deadline, neither is advisable. Paying large credit card bills late obviously incurs a fine, but paying it too early also means that you are losing the interest that this money could have made in the bank. Hence, small actions like paying bills on the exact due date so that your money can yield the maximum amount of interest in the bank go a long way in making you financially secure.
Keep liquidity very tight. Obviously, it is important to account for emergencies such as hospitalization etc. but otherwise, keeping excess money in the bank means there is always a chance of you spending it. It is ideal to never spend on unnecessary items, especially if they will not appreciate in value over time.
Milan Ganatra is the founder and CEO of 1Silverbullet. He started his journey towards building technology-led solutions for the financial services sector in 1999 with Miles Software and is actively involved in investing in finance companies.
Aashika is the India Editor for Forbes Advisor. Her 14-year business and finance journalism stint has led her to report, write, edit and lead teams covering public investing, private investing and personal investing both in India and overseas. She has previously worked at CNBC-TV18, Thomson Reuters, The Economic Times and Entrepreneur.

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