How to grow your money: 7 “must-know” tips

Although each person has their own financial circumstances, there are some common aspects that all people share. Whatever your financial situation, growing your wealth will be a concern.

How can you grow your wealth? Here we are not going to tell you how to grow your money fast or how to get rich quickly. Instead, we are going to give you practical tips that actually work to help you build wealth with There.

If you want to grow your money, do you have to follow these tips? No! But if you really want to see your wealth grow, try to incorporate at least some of these tips into your financial plans.

If you’ve ever thought something like, “I want to learn how to grow my money, but I don’t know where to start,” you’ve come to the right place. Let’s dive into the best tips to show you how to grow your money!

1. Make sure you have an emergency fund

You should first think about what you can do to increase your wealth before you start thinking about ways to make it grow. Specifically, about creating an emergency savings account.

An emergency savings account is a fund where you set aside money for the unexpected. Whether it's an unforeseen medical procedure, a visit to the vet, or any other emergency, those costs can start to add up.

A great way to increase your wealth is to have an emergency fund. Because when (not if) an emergency happens, you'll want to have money left over to fall back on.

This way, you won't have to rely on a high-interest credit card or personal loan if something happens. By avoiding debt, you'll be one step closer to growing your money.

Once you've built up your emergency fund, the best way to increase its savings potential is to put it into an interest-bearing savings account. A high-yield savings account is a liquid investment vehicle, meaning you can withdraw the money whenever you need it.

Plus, you'll earn more interest on your money in this type of account than in a regular savings or checking account, which means you'll save and grow.

2. Set financial goals

It's not easy to achieve your dreams if you don't know what you want. Similarly, it's hard to achieve your financial goals if you don't have something to work towards. If your goal is to grow your money, it helps to know exactly why you want to grow it.

Consider your financial goals. Keep in mind your financial goals and the needs of the people you work for. Do you want to save money on a housing payment? Do you want to save money for a new business idea? How about a travel fund? How can you help your children learn? Retirement?

All of these goals (and more) are common things that people say they want, but not many take the time to sit down and really lay them out. When you determine exactly what you want your money for, you'll be in a better position to put the tools in place to help you grow.

3. Change your mindset

Speaking of mindset, once you know your goals, it's time to elevate your money mindset. First, determine what's holding you back from achieving your financial goals. When it comes to increasing your wealth, fear is a huge obstacle.

It’s understandable to feel fear when something new happens, like personal finance. The best way to combat fear is education. Clever Girl Finance’s “Build a Solid Foundation” package is a good place to start.

Once you've educated yourself on the topic that scares you, you'll have to work hard to get started. But once you take that first step, you'll find that none of these financial topics are that scary.

You may also need to change your mindset. It's unrealistic to expect rapid growth. You hear all the "get rich quick" stories, but it's unlikely to happen. If you're hoping to learn how to grow your money quickly, you're not looking for the right thing.

Growth is only possible if you have patience. Understanding that wealth growth takes time will help you to be patient. Little by little, you will see progress and eventually your money will grow.

4. Budget: Keep it

One of the key factors to financial success is knowing exactly what your income and expenses are. The best way to do this is to establish and maintain a budget.

If you've already tried budgeting without much success, try a new approach. There are even special ways to budget when you have a variable income, if you're budgeting with a partner, and if budgeting hasn't worked for you in the past.

Understanding what you do with your money is the first step to being financially responsible. Then you can work toward other goals like investing, saving, and paying off debt.

5. Pay off your debt

You may find it difficult to think of ways to increase your income when debt is weighing on your head. It's possible. The first step is to come up with a plan to pay off your debt.

Lenders can be a valuable financial tool that helps us do many things, like paying for a home or going to school. High-interest loans can lead to unnecessary expenses.

In fact, It is estimated that the average American will spend more than $160.000 on interest payments alone over their lifetime..

By paying off your debt, you'll reduce the amount of money you spend on interest payments and have more money to use to grow your money, such as investing in the market or investing in yourself.

It's very easy to come up with a strategy to pay off debt. With the right strategy, you can pay off debt and save and invest, all at the same time. Paying off debt doesn't have to come at the expense of growing your money.

6. More profits

If you really want to grow your money, earning more is one of the best approaches you can take. You can earn more in many different ways, such as

Asking for more can help you increase your wealth

Are you getting paid what you are owed? It is very likely that you are underpaid Only 84% of women earn as much as men.Unfortunately, the wage gap between men and women remains very large.

While asking for a raise is difficult for many, it is one of the easiest ways to make more money. With a raise, you will have excess money that you can use to pay off debt, invest, or grow.

You can increase your income by changing careers or jobs.

If asking for a raise isn't enough, it may be time to change jobs. You can get a big raise if you change jobs or careers.You may find it more rewarding to take a leap than to receive small raises at the company.

Starting a side business to increase your income

Don't forget the power of a side hustle to increase your income. Whether you want to quit your job and run your own business, or you want to earn some extra income, a side hustle may be right for you. It's one of the best ways to invest in yourself and grow your wealth.

7. Invest, invest, invest!

Finally, if you want your money to grow astronomically over time, a combination of patience, investment, and a long-term timeline is the answer. For some, investing may seem intimidating or even scary, but it doesn't have to be.

Clever Girl Finance's book, Learn How Investing Works, Grow Your Money, is a good starting point to learn how to grow your money with various investment assets.

Once you learn the basics of investing, you'll see that you don't have to be a multimillionaire to invest. In fact, you can invest with as little as $500! Here are just a few ways to start investing now:

How to invest in retirement funds and make your money grow

The fundamental principle of investing is that your investments will only grow if you don't leave them alone. This happens because of the power of compounding, appreciation, and earning dividends. That's why your retirement accounts are one of the best places to start investing.

You're going to put money into these accounts and essentially let them grow until you're ready to retire on them many years from now.

There are many retirement accounts. The type of employer will determine which ones you have.

401 (k)

Your company sponsors this account. You contribute a portion of your pre-tax income, and sometimes your company “matches” that amount and contributes to the account as well. Make sure you take advantage of the employer matching program because it’s free money for you.

Roth IRA

Contributions made to a Roth IRA are made on an after-tax basis, meaning they are taxed today, but not at the time of withdrawal. You do not pay taxes on the earnings in this account when you withdraw them.

The traditional IRA

Contributions to a traditional IRA are made on a pre-tax basis. It is similar to a traditional 401(k) and you do not pay taxes today. These funds are taxable at retirement.

Index funds and ETFs

If you're ready to invest beyond retirement, index funds and exchange-traded funds (ETFs) are two great options. Index funds and ETFs are an aggregation of securities in the stock market. These funds track an underlying index rather than a stock.

Both types of funds have low fees and have good historical performance, making them attractive options for long-term investors.

You can grow your money with investment vehicles

Depending on your circumstances, you may want to consider other options if you want to invest more.

For example, if you are saving for a child's college education, a 529 plan would be a great option. If you are looking for an efficient way to pay for medical expenses, a health savings account (HSA) would be something to consider.

You can also consider real estate investments or investing in real estate investment trusts (REITs).

The bottom line is that there are many ways to invest, and educating yourself on what works best for you will definitely help your money grow over time.

Keep in mind that when it comes to investing, it is important to have broad diversification to protect yourself from volatility.

When it comes to how to grow your money, it's not as complicated as you might have thought!

The sooner you learn how to grow your money, the more growth you will see. Unfortunately, “how to grow my money” is not a course many of us were offered in school.

But fortunately, it's never too late to learn how to grow your money quickly. Take these ideas and transform your finances!

Discover how you can increase your income with our totally free guide «How investing works» bundle! Don't forget to subscribe to the Clever Girls Know podcast and YouTube channel Discover more tips to make your money grow quickly!