You might be the smartest person in the room, but there’s a lot more to running a company than just having a good idea. You need to make sure that your business can grow and thrive and manage its finances.
The world of finance can be a bit intimidating. This isn’t because it’s complicated – it’s just that so much of it is hidden and not explained to the average person, especially those who don’t have access to banks or financial advisors.
Knowing about financial success and using growth hacking techniques to amplify your results are two different scenarios. Luckily, we’re here to give you three financial hacks so you can grow your everything (and not just your bank account).
Even if you don’t plan on investing right now, these hacks alone can help you grow your wealth and reach financial independence sooner than you have planned.
Consider Saving More Than 10 Percent
To begin, you should set a specific savings goal and then save 10% or more of your income toward that goal. That’s the bare minimum. If you can afford to put away more than 10%, consider doing so.
Not only will this help ensure that your goals are met, but it also gives you an opportunity to invest in other things, like retirement, that will pay off down the line.
A great way to grow your wealth is by setting up an automatic transfer from your checking account to a savings account. You can set this up with any bank or your employer if they offer such an option.
Automatic transfers are the easiest way to keep money out of sight and out of mind, because you won’t have to think about it at all—it’ll just happen every month! This will ensure that you’re saving consistently while giving yourself some wiggle room in case of emergencies or unexpected expenses.
Don’t pay off debt right away
Banks and financial advisors will always recommend you pay off your debt as soon as possible. They’ll tell you that it’s a great way to grow your money, as it will help you pay less in interest. This is true – but only to a point.
There are many different schools of thought when it comes to debt. Some people think that you should pay off all of your debts as quickly as possible, while others believe that the best way to handle debt is to work on paying it off gradually. Still others believe that you should never pay off your debt at all.
Let’s take a look at each of these strategies and see how they stack up against each other.
Immediate Debt Payoff: The first strategy is probably the most obvious one: just pay off all of your debts right away! This can be a great idea if you have no plans for any big purchases or investments in the near future—it will allow you to free yourself from any financial obligations so that you can focus on building up your savings account instead.
Gradual Debt Payoff: The second option is similar to the first one but involves making small payments over time rather than all at once. This approach could work well if you’re concerned about being able to make larger payments towards debt without affecting other aspects of your financial life like retirement savings or emergency funds; by spreading out payments.
So, instead of paying off your debts immediately, save in high-return savings accounts—and don’t touch it! The money will be there when you need it and will continue to grow over time.
Invest and reinvest to grow your portfolio
When you invest in something that pays off, the smart thing to do is reinvest those profits into more of the same thing, so long as it’s still a good investment. That way, you end up with a larger percentage of your original investment over time; and if you start small with your initial investment, that means a lot more money in your pocket later on.
It’s easy to get caught up in the excitement of new investment and forget that you’re working toward a long-term goal. Don’t spend those profits on luxuries or assets that depreciate over time. For example, your car might seem like a great idea at first, but if it gets old and needs fixing constantly, then it’s no longer worth the money spent on it.
Be ruthless with your spending
If you want to grow your money faster, you need to be ruthless with your spending. Reduce expenses by cutting back on unnecessary purchases so that more funds are available. This should give everyone extra breathing room within budgeting constraints imposed by lenders/debt repayment plans.
By being ruthless, I don’t mean being mean to yourself and not taking care of your basic needs. I suggest that you need to stop being so free with your spending. There’s a big difference between treating yourself to something nice from time to time and treating yourself to everything you want all the time. By cutting back on your extravagant spending, you’ll see that you have more money to put into your savings account. And, as we talked about earlier, that means it will grow your money faster.
Where should you start?
These three tips are a great place to start. They can be implemented immediately and will help you reach your financial goals faster than ever before. Banks and financial advisors might make it seem like growing your money is a complex and difficult process, but that’s not the case. It really isn’t.
The key is to make sure you’re setting yourself up for success. That means using these three tips as stepping stones to get yourself into a better financial situation. That will ensure you have the proper savings account, that you’re paying off your debt as soon as possible, and that you’re saving as much as possible. These small changes will help you grow your money faster in the future.
Bernd Financial Group provides the best financial consulting solutions for business and personal cash flow and debt management. If you’re looking for expert analysis of your present finances, productive counsel to create or revise plans to accomplish your financial goals, and candid assessments along the way to your financial success, Bernd Financial Group can help. Our experts will meet with you to discuss your goals and objectives. Then we’ll walk you through how we can help you achieve those goals by providing unbiased advice and tailored recommendations for your needs. Schedule your free initial consultation appointment today.