How to Build Smart Asset Realty

Track your spending.

After making a budget you need to make sure you stick to it.

Only buy things if you have money in your budget for them.

Keep a spreadsheet that lists all of your purchases so you know exactly what you’re spending on. Always know how much money you have left to spend for any week, month, or year.

• Download a budgeting app like Mint or PocketGuard to help you track your spending. These apps can help people follow their budgets without having to maintain spreadsheets or save receipts.
  

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Lower monthly energy costs.

Change all the lightbulbs in your home to LED or CFL lightbulbs, as these can greatly reduce electricity bills.

You can also unplug electrical devices you don’t use often, as anything that’s plugged in draws some electricity.

To lower your heating and cooling bills, install a programmable thermostat, which can help you use energy more efficiently.

Reduce the amount you spend on entertainment.

Think particularly hard about getting rid of items that have high monthly bills, like cable.

If you have any subscriptions or memberships that you use infrequently, cancel them.

This will help you save money every month.

Avoid taking on debt, especially on credit cards.

The less debt you have, the more quickly you’ll be able to build assets.

Some kinds of debt, like a mortgage or student loans, can help you build assets or increase your earning potential.

But even in these cases look closely at the numbers.

And make sure you can afford that amount of debt before you take it on.

• If you use credit cards, pay off the balance monthly so you don’t have to pay interest.
• If you already have a considerable amount that you’re having trouble paying off, try to consolidate or refinance it.
• This might help you get a lower interest rate or stay on top of your monthly payments.

Maximizing Your Income

Take on multiple jobs if you aren’t earning enough from just 1.

In addition to allocating your money wisely, you’ll also want to earn as much as you can to build assets.

Taking on more than 1 job may not be possible for your situation.

But it can help you to increase your income, even if the job is only part-time.

Work overtime hours if your job offers them.

Overtime hours often pay at a higher rate.

Ask your boss if they are available at your job and volunteer to work them in order to add to your income.

Smart Asset Realty

Start a side business.

If you have a skill or a hobby you don’t use at work.

Try to make money from it during the evening and weekends.

For instance, if you like photography, you can try to pick up work as a portrait or wedding photographer. If you make crafts or clothing, try selling them online on sites like Etsy.

Go back to school if you need to move into a more lucrative career.

If you simply cannot make enough money in your current situation to meet your financial goals, you may need to consider changing careers.

• Research relatively stable and lucrative career fields, like healthcare and technology, and find out what kind of education you would need to switch to a better-paying career that looks appealing to you.
• If you go back to school, though, remember to be cautious about taking on debt. Look into scholarships, grants, and work-study opportunities. You can also try going to school part-time, so you can also work and use your income towards your tuition.

Investing Your Money Wisely

Invest the money you will need within 5 years in safe assets like bonds.

Aside from earning, investment is the most important part of building assets.

Savings bonds, certificate of deposit accounts (CDs), and treasuries are steady, low-risk investments.

• Use these forms of investment if you are saving for something you will need to pay for within 5 years, like a car, a wedding, or education expenses.
• You will not make as much money from them as you would through buying stocks, but you are also not likely to lose money. This doesn’t mean they’re risk-free, though!

Open retirement accounts and contribute to them routinely.

There are a variety of retirement accounts, like 401Ks and IRAs.

Learn about the different options and open accounts that fit your needs.

Many people hold several different kinds of retirement accounts, so don’t limit yourself to just one.

• Set aside a percentage of every paycheck for your retirement accounts.
• The more frequently you contribute to them the more likely you are to reach your retirement goals.
• Setting aside 10-15% of each paycheck for retirement is usually a good goal, though you should make a plan that works for your financial needs.
• Retirement accounts often have annual contribution limits.
• Make sure you understand any restrictions on your retirement account and make your budget accordingly.
• Your employer may have retirement benefits you can take advantage of, such as matching contributions to a retirement account. Ask your boss at work to find out.

Invest the money you will not need for over 5 years in the stock market.

The stock market can be risky over a short period.

But if you hold onto stocks for 5 years or more you can often see a significant return on your investment.

Index funds are usually the safest stock market portfolios to hold onto for a long period of time.

Buy real estate if you can afford it.

Research real estate markets thoroughly before deciding if you want to invest in property.

Outside of buying your own home.

You should purchase real estate only if you won’t need to take on considerable debt.

Like stocks, real estate can appreciate well over time.

But you should plan to hold onto your investment for over 5 years.

• You can create another revenue stream by purchasing rental properties.
• Keep in mind, though, that you will have to pay for the upkeep of the property.
• Always be cautious when purchasing real estate, as it costs money to maintain and can sometimes be a risky investment. Never purchase real estate if you don’t think you have enough income to cover all the costs of it, like repairs, insurance, and property taxes.
• Avoid purchasing real estate in areas where property does not sell easily. You want to be able to get your money out of investment properties if necessary.
• Areas where houses sell quickly and rise significantly in value over time usually make for the best investments.
  

  Smart Asset Realty

Consult a financial advisor if you need special guidance.

Many banks have dedicated advisors you can speak with to help you learn how to build your assets and meet your financial goals.

Look on your bank’s website to see if they offer this service and to make an appointment.

If your bank does not offer financial advising, research institutions that do.

• Financial advisors usually charge fees, but these fees vary depending on the institution.
• Some advisors charge a percentage of the assets they help you manage.
• Some charge by the hour, and others make you pay them a retainer for continued services.
• Ask advisors about what fees they will charge before you do business with them.