If you think you already know all about how money works, this article will enlighten you for sure.

It explains a lot more about how money works and some tips to make money work for you and help you understand money more than you already do.



If an individual wanted to have a solid rock-hard body, they would not be able to achieve that goal if they sat around all day and watched TV and ate junk food.

It just doesn’t work that way.

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In order for an individual to be physically fit, they need to invest in their bodies by exercising regularly and eating properly.

Just as we set goals to be physically fit and know that there is an exercise and diet regimen that we need to follow, so it is with our money.

As it relates to our money we just can’t sit around on the financial couch and not exercise our money through various ways of making it grow.

This is accomplished through the exercises of investment.

Therefore, let us look at several dietary and exercise options that we can utilize to strengthen our money or make our money work hard for us.


15 Best Tips to Make Money Work for You


1. Know More about How Money Works

When people talk about making their money work for them, they are talking about controlling their personal finances.

When that control becomes our focus there is a steady improvement in one’s personal financial condition.

This progress can equate to financial stability and allow us to be more secure in the moment and work towards a secure future.

Making your money work for you also means being financially independent.

Being financially independent means if you were to lose your job, your money would be invested so ongoing money would be coming into the household to support you and your loved ones.


2. Invest In Yourself

One of the best investments that you can make with your money is to invest it in yourself.

This simply means that your priority for the use of your money should be enriching yourself in all aspects of your life.

This enrichment means growth educationally, physically, emotionally, mentally, etc.

If one does invest in themselves eventually all your hard work will catch up to you and may have negative implications.

A case in point would be if you work so hard and are stressed out over your finances that you may become ill because of stress.

Also, it is important to invest in yourself educationally to increase your earning power and invest in yourself physically so that your hard-earned money is not going towards medications, hospital bills, doctors, etc.


3. Pay Yourself First

A critical financial discipline in making your money work hard for you is that you need to pay yourself first.

This simply means that before any other bills are paid the first expense coming out of the budget is money paid to you.

This can be compared to a company investing in itself through capital expenditure.

Investing in the business (you) pays dividends to secure your future.

Also See: Tips for Building Wealth in Your 30s.


4. Budget

A critical tool in making your money work hard for you is to commit to a personal financial budget.

This tool, found in many accounting software packages or just a simple spreadsheet, reflects the income and expenses over a period of time.

The period of time can be as little as a week or can extend out to a year or even more.

The budget is a picture of how an individual’s money is spent and truly reflects what is important for that individual and family.

A simple budgeting technique is that 50% of all the income is devoted to expenses that are needful in the household, 30% of the budget is devoted to the wants of the family and 20% is set aside for savings.

Expenditures in the 50% category would include housing, food, utilities, insurance, transportation, etc.

30% would incorporate items that aren’t essential to living but are part of a chosen lifestyle.

Examples of expenditures in the 30% category would include monthly subscriptions travel, entertainment, meals, etc.

The remaining 20% is then devoted to savings


5. Peer to Peer Lending

An opportunity that might be beneficial to you is to become a lender yourself.

There are a variety of sites that are known as peer-to-peer lending.

These lending sites facilitate your investment with people needing a loan.

They do all of the background financial investigations on individuals requesting a loan and assess the risk as it relates to loaning money.

The higher the risk the greater the percentage that is offered to the individual in accepting a loan.

Two of those sites include Upstart and Prosper.

The reward to you as an investor can range anywhere from 5 to 12% on your investment.


6. 401(k)

If you work for an employer that offers a 401(k) for their employees, it is important to maximize this benefit to your advantage.

With a 401(k) the employer will match the contribution made by an employer towards their retirement.

The match made by the employer is up to a certain percentage.

As an example, if an employee contributes 3% of their salary, the employer will match that percentage or whatever the company’s policy is regarding the maximum percentage.

The monies are generally invested through another company that manages the investment.

Usually a mutual fund company.

Of course, the employee can donate more.

If an employee doesn’t match the potential of an employer’s contribution, they are leaving unclaimed money behind.


7. IRA

Another beneficial retirement and investment action is through an IRA.

There are two types of IRAs.

The Roth IRA is money set aside by you, the investor and is made through an investment firm.

The benefit of a Roth IRA is that the taxes are paid on that amount now but when drawn out at retirement or earlier there are no taxes assessed because they have already been met.

This could be beneficial if the tax rates increase in the future.

The other IRA is known as a traditional IRA and the individual contributes to their account, usually a mutual fund company, and earns a return on that investment.

When the individual reaches the age of 72 1/2 years of age they must start to withdraw a certain distribution amount (RMD).

Both IRAs have a maximum amount of money that can be contributed on a yearly basis.


8. Diversify

To make your money work hard for you an important strategy is to diversify your investments.

In other words, do not put all of your hard-earned money into one investment vehicle.

The investment dollars should be spread over a number of options.

This investment plan of action will help mitigate any severe losses if one vehicle is not performing well.

The other investments will maintain their solid return and shore up the entire investment portfolio.

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9. Pay More Than Minimum

If you are in credit card debt, there are a number of ways that you can expedite you’re getting out from under this heavy burden.

The first method of payment is to identify those credit cards that have the highest interest rate.

After you’ve paid all of the other minimum payments on any other credit cards, then whatever you can pay in addition to the required minimum amount occurs.

Once that card is paid off then go to the next highest interest-bearing credit card and follow the same process.

The other method that you can do is take the lowest balance of credit cards and put all that you can towards that and pay off that balance.

Then move to the next credit card with the lowest balance and follow the same process.

This particular method is called the snowball method and will provide a psychological boost for you in paying off a credit card and then moving on to the next one.

The reality is if you only pay the minimum amount on your credit cards it is going to take you years upon years to pay off the balance.

By law, credit card companies are to indicate to the consumer that if they only pay the minimum amount each month how many payments it will take for them to pay off the balance.


10. Stay Out Of Debt

One of the most important commitments that an individual can make as it relates to making their money work hard for them is to stay out of debt.

Indebtedness is an opportunity for creditors to allow our hard-earned money to work hard for them.

In essence, they are doing the very thing that you need to be doing and that is using your money to obtain interest for your portfolio.


11. Real Estate

Real estate is a quality investment to make your money work hard for you.

Owning a residence is the perfect opportunity to be a landlord.

The involvement is minimal and can be provided by the property owner themselves or they can hire a management company.

In addition to receiving a steady monthly income, the tax laws favor the property owner in that they can deduct associated expenses as it relates to the earned income.

For example, the management company fees can be deducted, repairs, insurance on the property, taxes, etc.


12. Know Where Your Money is Going

Another important strategy to make your money work for you is to know where your money is going.

This strategy is not so much about the big-ticket items, or the expenditure line items designated for rent, utilities, cellular phones, etc.

We are pretty much aware of how that money is spent and where it is going.

The money that we often lose track of is the little bits of money spent here and there on compulsive buying or buying on an impulse rather than thinking long-term.

Examples of compulsive buying could be that Danish or coffee that you get every day, buying a technological device when it is not budgeted, or eating out when it is not budgeted, etc.

Not that these expenditures are bad or should one deprive themselves of these pleasures.

The point is that if these items are not budgeted and the money is spent, then that is money that needs to be taken from somewhere else to stay within the budgetary limitations.

You should log all of your expenditures including these spontaneous purchases so that you are aware of what your income is being spent on.

You may be surprised at how these small amounts add up to some significant dollars that could be better invested elsewhere,


13. Emergency Fund

It is important to protect your hard-earned money from the various events in life that can create financial hardship.

Examples of these unanticipated events could include loss of employment, illness, major appliance repairs, etc.

To mitigate these destructive events in our lives, that can also impact us financially, it is important to have an emergency fund or nest egg.

Most financial gurus suggest that three to six months of monies in reserves is a good start in weathering the storms of life.


14. Retirement

It is one thing to make your money work for you, but it is another to know what the purpose or goal is of these financial strategies.

Certainly, it is more than looking at your accounts daily and admiring all those zeros after the first number.

So, what is the purpose?

Visualize your future goal.

What do your retirement years look like? Trips, time with the grandchildren, volunteering, out on the golf links?

Making your money work hard for you now will also allow your money to work hard for you in your retirement years.


15. Stock Market

There are many investment vehicles where your money can be placed.

CDs, high-yield interest money accounts, precious metals, all have their place for investment monies.

However, your money needs to lift more weight to strengthen your return.

Therefore, most fund managers suggest that the best investment is the stock market that will provide a positive return for the investor.

It is important to assess your risk as it relates to where to place your investment dollars.

Most likely the best investment strategy is to utilize a professional financial advisor who is affiliated with a financial advising firm.

They will assess your risk level, recommend various investment opportunities, and help to manage your money for a low fee.


Personal Story

When I was a kid, I always enjoyed reading the Superman and Batman comic books.

Inevitably, on the back page of the comic, there would be an ad depicting a muscular bully who was kicking sand in the face of a 98-pound weakling.

I wanted to be that muscular individual and stand up to the bully.

I would send off my dime with a coupon to the address on the ad.

Of course, I never got to that point as it required further investment in ordering the special diet, weight equipment, etc.

I wanted the perfect body but didn’t have the resources or the drive to make it happen.

So it is with our money, we want a robust portfolio but it is going to take a plan, investment strategy, and our will to stay the course in order to achieve the goal.


Making Money Work for You FAQs


What Financial Action is the Greatest Threat in Preventing Your Money From Working Hard for You?

The greatest detriment to financial independence and allowing your money to work hard for you is being in debt.

Specifically, credit card debt.

This is because if an individual carries a balance and only pays the minimum required to satisfy the credit card company, they will find that it will take years for them to pay off that debt.

Not only are they paying off that indebtedness but are also paying interest charges to the credit card company for the use of their money.

This is an interest that you should be earning on your money and not vice versa.


Is There Such a Thing as Good Debt?


Good debt would be defined as owing money or taking out a loan on something that will provide you a return on the debt.

Two prime examples of good debt would be the purchasing of a home or a student loan.

With the purchase of a home that is a possession that you are in the process of owning and you are building up equity.

In other words, you have something to show for the debt that you have incurred.

As it relates to a student loan, the supposition is that you are going to school and therefore investing in yourself.

The return on further educating yourself will most likely translate into a better job and therefore earning a higher wage which is a great return on one’s investment.



If you’re not making your money work as hard as you can for yourself then it is time to get off of the financial couch.

Through a plan of action, you can take steps to bulk up your financial portfolio and provide yourself a healthy and strong financial future.

Again, this company has paid $25+ million to members:

SurveyJunkie (only USA, Canada, Australia residents allowed). You can earn money sharing your thoughts. They have already paid $25+ million to their 20+ million members just for sharing their thoughts and opinions. Click here to join SurveyJunkie for FREE

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Apart from being a seasoned Personal Finance expert who has written for top publications around the world, I bring significant personal financial experience. Long story short... through bad financial choices... I found myself $100,000 plus in debt. I was able to dissolve this indebtedness and regain financial solvency. This financial turn around was accomplished through reading, studying and implementing a financial plan. My financial plan included paying down my debt through budgeting, being cognizant of where my financial resources were being spent, changing my attitude about money and understanding the binding chains of the improper use of credit. Today, and for 10 years, I have been debt free and have invested wisely to enjoy my current retirement. This is allowing me to write to help others make, save and grow money wisely!