Jürg Widmer shares his money advice, the best ways to make money work for you and what steps you can take to make positive financial changes. Read more...
Everyone needs some money advice at some point in their lives. After everything we have been through together in recent months, it’s not surprising that finances are a real concern for so many. While it may seem impossible right now, there are always positive steps you can take to ensure you experience financial security instead of scarcity.
I’m Jürg Widmer and I have built up a wealth of experience in the financial sector so now that I am retired, I like to share money advice and with those who need it. So, if you want to know how to reduce anxiety around finances and make money work for you… keep reading.
People who need money advice often ask whether they should pay off debt first or start saving first. It’s the classic chicken and the egg. The answer is to start paying off any debt you have before saving.
Paying Off Debt
The smartest move is to start paying off any high interest debts that you have first. By prioritising these, you will end up paying less back in the long run. Having debt can negatively impact your credit score and future prospects, so keeping debt low and income high is very important. You could end up saving a whopping 20% of your income by paying debts sooner and in larger instalments.
If you need some budgeting advice to help make a plan, create a budget sheet with income, expenses and spare. If your income is less than you pay out each month, the simple solution is to find a way to make more money and spend less. It isn’t always easy, but anything is possible with drive and desire.
Seek Smart Places to Save
Once your income has increased, and any debt is paid off, it’s time to start saving. Unfortunately, there are no great savings to be made anymore due to the historically low interest rates. Having an emergency fund is a smart idea, and the best place to keep this is in a separate savings account away from your current account.
Invest for Future Financial Growth
For greater returns but also a potential for risk, investing your money is something to consider but worth speaking to a professional and receiving proper financial advice before doing so. Seeking money advice will help reduce the risk and see returns of around 7% on the stock market each year. Investing is just one way to earn residual income; there are many ways available to you. It’s just a matter of investigating the best options.
Start a Side Hustle or a Passive Income Product
If you have some extra time and energy, many people start a side hustle to generate additional income and make money work for them. More money means less financial struggle and more possibilities open to you. Side hustles are great but what is even better is passive income.
It would be something as simple as creating an eBook which you sell for £7 online; once you put in the initial work, get an online following, you can make money overnight (eventually) without doing much at all. Or, you could buy a property to rent out, have the rent pay the mortgage and charges; anything on top goes in your pocket.
Make Credit Cards Work for You
Paying off debt is impotant, but what if a creditor paid you for using the credit card. Many credit cards will actually reward customers for managing their account well and paying off in full each month. Many ‘cash back’ credit cards will pay you a percentage back of the money you spend. Some are up to 5% cash back but there are catches so it’s important to look out for those. There are rewards cards too which work in a similar way but you receive things like vouchers to spend in retail outlets. Using a credit card in this strategic way can provide a little financial boost to add to your savings account.
While your income is the main focus and is your bread and butter. Making money work for you means you have money on top of the money you earn and that provides more options for future growth and security. Money advice is probably the best advice you will receive, because it will help you avoid financial struggle and you can’t out a price on that.,