How To Make Your Money Work For You.

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534

Summary:
There are many ways to manage your finances to get the most out of your money. Here are just a few tips for everyone from experts to those just starting out on their own. Manage your money the right way, and you’ll definitely profit from it.

Consider a 1031 tax exchange. If you sell an asset—a commercial building or property, usually—you can avoid paying taxes on the profit if you invest your money in a similar building or property within 45 days. You can perform this tran...


Keywords:
1031, tax, exchange, real estate, nationwide


Article Body:
There are many ways to manage your finances to get the most out of your money. Here are just a few tips for everyone from experts to those just starting out on their own. Manage your money the right way, and you’ll definitely profit from it.

Consider a 1031 tax exchange. If you sell an asset—a commercial building or property, usually—you can avoid paying taxes on the profit if you invest your money in a similar building or property within 45 days. You can perform this transaction with residences as well, as long as the property is specifically for investment or business purposes—you can’t live there.  The exchange must be made with another property of like kind—the transaction is also sometimes called a “like kind” exchange for this reason. It’s a good way to defer taxes on some serious profits.

Consider a credit union. Credit unions do all the same things banks do—provide loans, money markets, checking accounts, etc.—but they are not-for-profits. This translates into fewer fees; most credit unions won’t charge a monthly upkeep fee to your checking account, as many banks do. It also means freebies: most credit unions offer free checking. In addition, you’ll generally get better interest rates on loans, interest on your checking accounts, and sometimes reimbursement for ATM fees. All those little charges add up—and a credit union is clearly a better choice than most banks.

Have a savings account? Better make it high-yield. If you use a savings account, check out the interest rates available at different banks and credit unions, and choose the one that has the highest interest yield. Check that there are no fees to diminish that high yield, however. If your money is sitting still in a savings account, it should be doing something for you while it sits.

Join an investment club. You may not have enough money to invest significantly on your own. But if you join a club of like-minded investors, you could become part of a serious investment block—one that can earn you lots of money. Look for investors with the same goals you have—whether it’s to strike it rich or just make enough to retire comfortably. The bigger the goals, the more aggressive the investing strategy tends to be—so make sure you’re comfortable with the other club members’ risk tolerance.

Think about real estate. Investing in real estate is one of the most common ways many people build wealth. Even renting can make you serious cash—just make sure the rent your tenants pay covers your upkeep, mortgage, and property taxes (with some left over, of course), and you’ll earn a second monthly income without a full-time job. Buying, refurbishing, and selling properties—sometimes called “flipping” a house—is a great way to build wealth as well.

Making money isn’t always easy—but it doesn’t have to be rocket science. And once you’ve got the money, it’s important to know how to manage it to maintain your wealth. Invest a little time invested in learning the ins and outs of financial planning, you’ll see a big return.