Alas! You’re past the period when your bank was deep red and it was not even month end yet. Remember those times you spent all your money and your bank decided to take its charges – $35 to fill its own hungry, greedy belly. It left you with less than nothing. That was in the past. Now, you make more than $70,000 a year, almost six figures. When you get past overdrafting, what do you do with your money?
Some people are already planning parties while some are thinking of their future. Whatever you decide to do with your earnings is up to you. But, we want to help you manage your funds well, so you don’t return to the period when overdrafting was a regular thing.
Here are some ideas for you to make the most use of your money –
- Automatically pay your bills
When you get past overdrafting, you don’t have to be scared anymore. You can automatically pay your bills such as student loans without batting an eyelid.
One of the best platforms for this is Autopay. Almost every company loves Autopay because they are confident you will pay your bills every month. This is also good for you because you wouldn’t really feel the money leaving your account.
Some companies even end up giving you a discount for using Autopay. For instance, various student loan providers will give you a discount on the interest rate when you use Autopay. In other words, your savings will accumulate over time and you’ll definitely have something to do with the money.
- Plan towards your family mortgage (Even when you’re dead)
Have you ever thought about what happens when you die? For instance, did you take your children’s education into consideration? What happens to your credit card balance, your mortgage, and even the expenses the family is going to use for your funeral? Okay, let’s not go too far. Don’t get scared yet.
What we’re trying to say is that without proper planning, you may leave your family with less than they need to survive.
How do you prevent this from happening? – Get life insurance.
There are various companies that sell life insurance with great benefits. Some of these companies even make the process very easy. Policygenius will get your process completed in just two minutes. One of the options offered to its customers is the $1 million policy, for just putting in $25 of your monthly salary.
Basically, your family would have $1 million to themselves when you’re gone.
Some people find it difficult to choose from the life insurance plans. So, we would advise that you go with the suggestion of many experts – opt for a policy that is 10 times what you make yearly.
- Save up on car insurance
Do you know you can save so much money on car insurance? There are several websites available for you to save some money on car insurance for the same coverage.
One of these websites is The Zebra. The Zebra is a free website that allows you to find the best car insurance. The steps are pretty simple. Sign up, enter the information about your car and whatever driving history you’ve had with your vehicle. The website will help you get the company with the best price by searching from over 100 companies.
According to The Zebra, users save an average of $368 a year. You could even end up saving more
- Invest in tangible assets
You’ll probably say this is what only rich people do. But, that’s not true at all. Immediately you get past overdrafting and start making enough money, it is one of the things you should do. Tangible assets such as real estate or farmlands grow in value over time. More than half of the individuals with high-net-worth carry out this practice.
There are now many ways for you to get into real estate investment without breaking a sweat. Some of them include CrowdStreet, PeerStreet, and Fundrise. You get up to 12% returns on investment on some of them.
You can start investing with as little as $500. Moreover, you don’t have to be a landlord to start investing in real estate. So, you can be a tenant and have properties in several locations around the world. As tenants pay rent, you earn on these platforms. If you’re really into increasing your income in the nearest future, you should be looking into real estate investment.
- Pay your credit card bill
I’m sure you didn’t think all those credit card bills you accumulated when you didn’t have so much will automatically disappear when you get past overdrafting and start making big money.
Moreover, you still have to pay those bills, and the interest keeps increasing.
So, if you have enough money to settle all your credit card bills, you can easily do it.
But, you can go through another route instead – one that saves you a lot of money.
With Fiona, you can pay all your credit card bills, and save thousands of dollars. In addition, the interest you would have to pay on the loan you got from Fiona is lesser, and you can now focus on one thing.
You can easily check if you’re eligible for the loan on their website. When you’re free of credit card debt, you can sleep with both eyes closed. No credit card payment this month! And the next two (if you don’t do something again).
These are some of the major things you can get involved in when you get past overdrafting. Meanwhile, remember that earning a lot of money is not what really makes you rich. What you do with the money you earn is what defines your wealth.
Paying your debts, investing, and saving are steps to financial freedom. So, even before you start earning up to $70,000 yearly, engage in practices that would grow your income and take you to a position of financial stability.
Find out the easiest ways to save for retirement irrespective of your age