How to Make Money and Then Protect It

Whether we like it or not, our lives are often controlled by how much money we make, and how much is left at the end of the month when all of the bills are paid. However, while we are diligently focussed on making money, we also need to be equally focussed on how to protect that money, in the form of savings, and for the future to maintain a lifestyle for ourselves and our family no matter what. 




To Make Money

As we get up every day and trudge off to work, it is with the intention of making the money we need to pay our bills and live our lives. Therefore, wouldn’t it be great if there was a way to earn money which didn’t require you to get up earlier, work later or go in on the weekends? Consider these tips for making some extra money for you and your family:

1. Ask for a pay rise. While this can be a daunting prospect, you won’t reap the benefits until you try, and the worst thing that can happen is your boss will say no. However, as hard as it is for you to ask for a pay rise, when you go into your boss’ office with evidence of your outstanding work and performance for the company, it will be equally hard for him to say no. To make sure you really are earning more money when you ask for a pay rise, ask for an amount which is higher than inflation. Each year things become more expensive, and as well as a cost of living increase, go to your boss and ask for a pay rise which is inflation plus x%. 
2. Using a cash back credit card. You can be paid every time you use your credit card if you have a cash back card. Cash back credit cards will credit you a percentage of each transaction, in most cases 5% and that amount is credited back to your account. This means you then need to find less each month to pay off your credit card balance, because as you spend, the balance is repaying itself. Therefore if you use your credit card for all of your monthly purchases and make sure to pay off the balance in full before the end of the interest free period you can be earning money as you spend. For example, if you spent $10,000 a year on your cash back credit card, at 5% cash back you’d be earning an extra $180 a year.
3. Sell your photos. If you are a bit of a snap-a-holic then you could be earning extra cash from your shots by selling them online. Stock photography sites such as istockphoto allow you to display your images and earn royalties each time someone pays to download and use your image. The more unique and breathtaking your photos are, the more coveted they will be and you can often set the price for the photos, and adjust it according to the file size downloaded.

To Save Money

It is not enough to have more money coming into your bank account each month, as this isn’t necessarily going to set you up for a secure financial future. Instead, you also need to implement savings plans to make sure you protect your earnings, and your financial stability in the future. These savings strategies should include:

1. A high interest savings account. It is also not enough to just earmark a certain amount each month as savings, but leave them in your transaction account. Instead, you need to make sure that your savings are working as hard for you, as you worked to earn them in the first place, and an easy way you can do this is with a high interest savings account. A high interest savings account is easy to set up online and free to use. You then simply set up an automatic deposit from your wages each pay day, to your high interest account. The account does the rest as it earns you a high interest rate and compounds your interest daily to earn you even more.
2. Get rid of your debts. Of course you should only look at using a high interest savings account if you are debt free. This is because the interest you are paying on your debts will be more than what you are earning in your savings account, so you would be better off financially, and actually saving more, if you put your savings towards repaying your debt and stopped paying high rates of interest. Then once you no longer have to worry about those credit card repayments, the amount you were using to pay off your debt can go into a high interest savings account. For example, if you have a $5,000 credit card debt and you used your savings to pay off that debt, you would have saved $700 more than if you had that $5,000 in a savings account. 
3. Budget for your retirement. It is always a good idea to have a savings goal and as you start thinking about protecting your financial security for the future, what are your plans for retirement? How much will you need to live the life you want in your retirement? Remember that this is the time when you are supposed to be doing all the things you never had the time or the money to do while you were working, so it is not the time to scrimp. However, if you don’t start budgeting for your retirement then your plans won’t be realised. Instead, adjust your spending habits now to protect yourself for the future.
4. Adjust your spending. To make real savings in your budget, adjust the way you spend your money, and make adjustments which will be sustainable. Think about the sacrifices you’re willing to make now, to create a better future for yourself and take active steps to change your behaviours. You need to be conscious of your spending every time you open your wallet, but don’t be discouraged if it takes you some time to make the adjustment complete.

To Protect Your Money

When it comes to protecting the money you make, it again requires you to focus on your needs and behaviours now, as well as look to the future. Consider the following ways to protect your money:

1. Disability insurance. Disability insurance is also known as income protection insurance and also often encompasses trauma insurance. Insuring your income in case you are suddenly unable to work will help you and your family avoid financial disaster, because while you may have a certain amount of savings, how long will these cover the mortgage and other bills, and what if you suffer an injury or disability which requires specialist medical care? A disability insurance policy will usually pay up to 75% of your income, plus other benefits such as super. This protects you and your family because not only do you still have a place to live, and can maintain your lifestyle, you also don’t default on your home loan or ruin your credit report.  
2. Life insurance. Protecting your money isn’t just about looking out for yourself. You also need to make sure that your family and finances will be protected when you die. Therefore, make sure that you also use life insurance to protect your money as your family will receive a lump sum payout benefit when you die, which will usually allow them to pay off the mortgage and pay ongoing bills, as well as maintain a lifestyle for themselves, so that financial burdens are not added to the already heavy emotional burden of losing a loved one.
3. Identity theft. The security of your finances will also keep them protected, and it is important that you remain aware of the risks of identity theft. This includes making sure you shred any documents you are discarding which have personal information on them, and never share your account PIN with anyone. When shopping online and using your credit card make sure you are entering your details into a secure site, and to make sure that all of these measures have been effective, regularly check your credit report for suspicious transactions.
4. Investments. Another way to protect your money is to invest it well as this stops you from spending it frivolously, and allows it to grow into a healthy sum for the future. Start by investing some of the funds from your IRA account into a real estate IRA investment trust. This allows you to buy shares and stock in a real estate investment with very little risk. You should also consider using a real estate IRA self directed account where you can directly transfer funds from your IRA account to then directly invest it in real estate, and generate a passive income.

Kristy Ramirez writes for Life Insurance Finder Australia, a free life insurance comparison website, where she helps people to compare and select the best life insurance policy to meet their needs at the cheapest possible price.

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