While salaries are struggling to align with inflation and the cost of living is rising, there’s one thing that’s likely to be on your mind: how do I make my money work for me?
Loqbox explores tips and tricks on how to make money without working, how to make money working at home, and ways to make extra money after work! Keep reading to find out the best way to make money work for you.
Time is money
So what’s the difference between making money work for you and working for your money? Well, generally your income is limited by time — how many hours you’re able to work. If you know how to make your money work for you, you could be earning in your sleep! That’s known as passive income.
A passive income can be an option if you’re wondering how to make money without working. But you could also be making extra money while working full time or finding clever ways to make money working from home. We all know that money doesn’t grow on trees. But let’s get into how to make money outside of work.
What’s the best way to make money work for you?
Ask yourself what will work best for you, because this answer depends on your individual circumstance. The best way for one person to make money work harder for them will be different to the next person. So it’s all about finding the best way for you.
Maybe you work full time but need extra cash, or you’re a stay-at-home parent looking to boost the household income, or perhaps you just want your savings to earn you more interest.
To help, here are some different ways people have made their money work harder for them. Take a look and see what might work for you:
How to make money without working
One of the most common ways to make money without working is by investing in stocks and shares. There’s always a level of risk when it comes to investing, though.
You could end up with less than you started with. And you need to have the money to play with in the first place. But investing in the right places at the right times can get you some serious returns.
If you’re new to investing, there are loads of tools and resources available online to help you get started. You can also seek advice from financial advisors and experts to assist you in making informed decisions about which companies to invest in. So you don’t have to go it alone and put all your eggs in one basket!
Credit building could save you £1,000s
If you don’t want to take risks with investing, and you’re happy with slower, longer term rewards, why not grow your credit scores?
When you apply for credit like mortgages, credit cards, and loans, the lenders will check your credit reports to decide if they’re willing to give you money and, crucially, at what interest rates. This is where you can really make your money work for you.
Getting lower interest rates on your loans can save you literally thousands of pounds over the course of your repayment. Just think how long it takes to pay off a mortgage and how much interest you’d pay on it over the years. So even small percentage differences can add up to hefty sums of cash.
If you don’t know your credit score you can check it for free using these services. And looking won’t hurt it!
*For transparency, we wanted to let you know that ClearScore pay us a small commission if you sign up using this link.
For the fastest route to better credit scores, start your membership with Loqbox and get Loqbox Grow, Loqbox Save and Loqbox Rent for just £2.50 a week. You could see a credit score increase of up to 300 points in the first three months when using all of these products.
Improvements to your credit score are not guaranteed.
How to make money outside of work
Another way to make money work for you outside of a traditional job is through passive income streams. These can include creating and selling digital products, such as online courses, ebooks, and printable assets. Even after you've finished making the product, it can still keep making you extra money, and you can move onto your next project.
Blogging or vlogging are also ways to make extra money after work. Once you've built up a loyal following, you can earn money through advertising, sponsorships, and affiliate marketing. You can also get people to pay monthly subscription fees for your content on Patreon. But, be aware, making content constantly can be a full-time job itself.
Can you make money working at home?
Yes, totally. Working from home offers some great ways to make extra money after work. The gig economy in the UK has blossomed with the growth of apps and digital technology, providing tonnes of opportunities to earn money from home in temporary positions, by completing tasks or freelancing.
Platforms like Fiverr, Upwork, and Task Rabbit connect people looking for work with people who need to get things done. If you have a skill that you don’t use as part of your nine-to-five, or at least is underused, maybe you should be monetising it?
Even if you don’t have a skill that you think would be suitable, but you’ve got a set of wheels, you could be earning from Uber or Deliveroo! If you’re obsessive about organising things you could become a virtual assistant. Or if your skill is just being the world’s biggest animal lover, maybe start dog walking or pet-sitting!
Try to use your hobbies and passions. If you're creative, you can sell your handcrafted products online. If you're passionate about fitness, you can become a personal trainer or find opportunities to teach classes. Whatever your interests are, there is likely a way to turn them into a profitable side hustle.
Just remember, if you’re already employed and looking to make some money on the side, you should check your contract of employment first. Some employers need to be notified if you’re working on other projects alongside your regular job, and some prohibit it entirely.
Ultimately, to make money work for you, you need to be smart with your time and resources. Investing in stocks and shares, passive income streams, home-working, and monetising your hobbies and passions are just a few ways to make extra cash outside of your day job. With simple planning and effort, you can be sure to find the best way to make money work for you.