5 Reasons Spending Can Actually Make You More Money
You’ve probably heard of the saying “You need to spend money to make money” and feel like it’s a contradiction. Yet, there’s actually truth to the statement. By handling your finances strategically, you can potentially earn money even as you spend it. Of course, this requires a discerning eye as to what ventures can indeed make your own funds work for you—or else you risk just losing money. Here’s a list of ways in which spending can make you more money.
A High-Interest Savings Account Can Help You Earn Passively
A simple way to make your money work for you is through passive income and one of the easiest ways to do this is to open a high-interest savings account. While this isn’t spending in a literal sense, it still requires you to keep a certain amount of your funds blocked out from your cash flow. The basic idea here is that you’ve put in money you can’t touch into the account in exchange for profit gained through higher-than-usual interest.
However, as you probably know already, you won’t get these high interest rates from traditional banks. This is why more people are now shifting their funds to a digital bank that can offer not only higher rates, but also the ability to manage their finances straight from an app. One such digital bank you can try is Maya, which requires no minimum deposit and only one valid ID to open. What’s more, by spending through the app—such as paying your bills or making online purchases—you’re able to boost interest earned all the way up to 14% p.a., thus netting you more gains in the long run.
Starting a Business Can Give You More Income Streams
Spending money to make money is the cornerstone principle of starting a business. Using your capital, you can acquire products or equipment to help you sell or provide a service to customers for higher returns. If you can keep the business going and build a steady stream of customers, then you stand to gain so much more than what you’ve spent. This is why many people are enticed to put their money into business.
That said, starting a business requires more than just spending money. You also need to conduct plenty of research, as well as careful planning beforehand; after all, you don’t just want to throw your hard-earned money into a venture that will just immediately sink. Be thorough with your market research to see what’s in demand, and then plan ahead in terms of your initial marketing efforts. For example, while a food business is almost always a safe choice for a new business venture, that also means there are too many dining establishments around that you’re competing with. With that in mind, try to come up with a unique selling point for your business to entice customers to choose you over competitors.
Credit Card Rewards Can Provide Great Value
Credit cards are handy financial tools, but they need to be handled responsibly. Reckless credit card use will only bury you in debt; on the other hand, using it strategically can help you reap great benefits. Majority of credit cards offer a rewards system, which lets you accumulate points every time you spend. The points can then be eventually exchanged for rewards, ranging from waived annual credit card fees to discounts to various establishments. By building up these points and redeeming them smartly, you get returns despite spending.
Some credit cards also offer occasional cashback promos, so be sure to take advantage of them when available. If you happen to not have a credit card yet but are planning to get one, check out sign-up rewards or bonuses from various providers first to see which one can offer you the most value based on your current financial standing and spending habits.
Online Courses for Upskilling Make You More Marketable
Investing in yourself also holds promise of eventually providing greater returns in the future. For example, you can learn a new skill or get certification that in turn can lead to a salary increase because of your greater qualifications and the value you bring to your company. If you’re looking to upskill or perhaps even planning a career change, then consider taking online courses to give yourself the knowledge needed to take the next step.
While there are many free courses available online, some of the more comprehensive ones require a fee. Don’t feel too bad about shelling out money for it, so long as the course is legitimate and relevant to your goals. In fact, having to pay a fee can even prove to be a great motivator to finish the course because you wouldn’t want your money to go to waste.
Investment Opportunities Can Help Grow Your Wealth
Common investment options such as the stock market, bonds, mutual funds, and buying real estate can also be another reason to spend in a way that will earn you money. That said, you can’t just go into these ventures unprepared. Do your research first or, better yet, consult with an expert who can help you get started in investing. For those who don’t have the appetite for high-risk investments, checking your bank’s investment offers can be a great start. Likewise, you may try looking into investment opportunities available in your digital bank, like Maya, such as high-interest time deposits, crypto, stocks, or funds.
Spending money doesn’t always have to mean draining your wallet with no return in sight. Indeed, there are also plenty of good reasons why spending can actually lead to profit in the long run. Look into the points discussed above and see how you can make your money work for you today.
