Finance

4 things you can spend money on that will make you richer

Saving money is great, but it won’t make you rich.

No matter how many dollars you put into a savings account, the 0.05% national rate of interest you earn won’t precipitate your millionaire status.

Certified financial planner Robin Hartell (also a financial advisory editor and columnist here at The Penny Hoarder) explains that cutting costs can only go so far.

It can definitely help with your short-term goals, she says, but if you really want to get richer, sometimes you need to spend money to make money. By transferring some of your money to these assets, you will be on a faster path to achieving your financial goals.

1. Spend $1 to own a piece from Amazon, Google or other companies

Investing is a smart way to get richer. “Spending money by investing it in the stock market and earning returns can make money more,” Hartell says.

While the stock market goes up and down over the course of days, weeks, and months, over time, returns tend to go up.

If you haven’t started investing and have some money to spare, you can start small, then build your own way. In fact, you can start with as little as $1 with an app called stash.

We love Stash because it lets you choose from hundreds of stocks and funds to build your own investment portfolio. But he makes it simple by dividing them into categories based on your personal goals. Do you want to invest conservatively now? Totally get it! Want to indulge in moderate or aggressive risks? Do what you feel.

In addition, with Stash, you can invest in fractions of stocks, which means that you can invest in money that you usually cannot afford.

It takes two minutes Participation, which is completely safe. With Stash, all of your investments are protected by Securities Investor Protection Corporation (SIPC) – that’s the industry talk of, “Your money is safe.” 2

Additionally, when you use the link above, Stash will give you a $5 sign up bonus once you deposit $5 into your account. *

2. Spend as little as $16 per month to secure up to $1 million in life insurance for your family

This is one of those occasions when spending a little money each month can pay off later.

Have you thought about how to run your family without your income after you are gone? How will they pay the bills? Send children through school? This is the time to start planning for the future by looking at a life insurance policy.

You might be thinking: I don’t have the time or money for that. But your application can take minutes – and you can leave your family up to a million dollars with a company called incurred.

Prices start at just $16 a month. Peace of mind knowing your family is being taken care of is invaluable.

If you are under 54 years old and want to get a quick quote for life insurance without a medical exam or even getting up from the couch, Get a free quote from Bestow.

3. Invest in your 401(k) — but use this company’s money, instead

Putting aside money from your salary to put into your 401(k) is one of the smartest things you can do for your future. And if the employer matches each contribution, that could mean hundreds of thousands of extra dollars in your account when you retire. It’s free money!

But if you can’t take advantage of this employer benefit because you need all of your paycheck each month, I contacted a company Lendtable will give you money.

We know it sounds too good to be true. But if your employer has a 401(k) matching program, that’s the money they’ve already allocated to you. With Lendtable, you will be able to unlock that free cash.

Let’s say you earn $50,000 annually and your employer matches your 401(k) contribution up to 4%. If you put $0 into your retirement account this year, you’ll get $0 from your boss. If Lendtable lends you the 4% of your salary that your employer wants to match, you’ll get $2,000 from your boss, minus the Lendtable fee. (This comes from the extra money you’ve earned, so there’s no sacrifice on your part.)

It takes three minutes to answer a few questions about your eligibility and sign up for an account.

Once you get the full matching amount from your employer, LendTable will take the money they loaned you, plus a small share of your earnings. If there is a penalty from your retirement account provider for withdrawing funds, Lendtable will cover that as well.

The risk for you is basically non-existent, so not taking advantage of your employer’s match with the Lendtable offer would make Future Millionaire bow your head in shame. start here.

4. Pay off your credit card debt faster – but cheaper

To stay out of debt, you need to spend less than you earn, but if you’re already struggling with credit card balances, Hartell says a debt consolidation loan can help you get rid of that debt faster.

You may be wondering how it makes sense to take out a loan when you already have credit card balances that are out of control. The answer lies in the low interest rates — which are well below 36% of some credit card fees — and a website called AmOne want to help.

If you owe your credit card companies $50,000 or less, AmOne will match you with a low-interest loan that you can use to pay off each of your balances.

Benefit? You will have one bill left to pay each month. And since personal loan interest rates are low (AmOne rates start at 3.49% APR), you’ll get out of debt much faster. Plus: No credit card payment this month.

AmOne won’t make you stand in line or call your bank either. And if you’re worried that you don’t qualify, you can do so for free check online. It only takes two minutes, and it can help you pay off your debts faster.

Carrie Faber is a staff writer for The Penny Hoarder.

1Not all shares are paid out, and there is no guarantee that dividends will be paid out each year.

2It should be noted that SIPC coverage does not insure against potential loss of market value.

For securities over $1,000, the fractional stock purchase starts at $0.05.

*Offer is subject to promotion terms and conditions. To be eligible to participate in this promotion and receive the bonus, you must successfully open an individual brokerage account in good standing, link a Funding Account to your Invest Account and deposit $5.00 into your Invest Account.

The Penny Hoarder is a paid affiliate/partner of Stash.

Investment advisory services provided by Stash Investments LLC, an investment advisory firm registered with the SEC. This material is distributed for informational and educational purposes only, and is not intended to provide investment, legal, accounting or tax advice. Investing involves risks.




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