Building power with little money
The word ‘assets’ quickly evokes associations with large sums of money and asset managers. Things that most people will not come into contact with so quickly. That is partly true, but don’t forget that even the largest assets ever started out as modest amounts. Even if you can only put a small amount of money aside, you can build up a nice asset over time.
Building up power is more than making a return
Nice returns sound exciting, but they will come later. The only way to start building up capital is to set aside a certain amount of money each month. That doesn’t have to be a large amount of money, the most important thing is that you do this consistently. To start with, you can set up an automatic savings order.
First, start with a financial buffer
It can be tempting to start investing your money right away when you have set aside quite a bit of money. But don’t forget to always keep a financial buffer for unforeseen expenses. That way you won’t get into trouble if your washing machine or laptop has to be replaced. It is best to leave your buffer in a separate savings account.
In the end, consider investing part of your assets.
When you have already built up some more capital, you can consider investing some of it. This way you have a chance of a higher return on your capital than the interest on your savings account. Of course, investing is not without costs and risks, so check carefully whether you are willing to take those risks.
How much can you put aside each month?
How much you can spare each month depends entirely on your income and your spending pattern. It can be a good idea to put together what you get in money each month and what you spend. That way, you can better determine how much you can realistically put aside each month. Read more about drawing up a housekeeping booklet.
Will you run out of money before the end of the month?
You’re certainly not the only one! And the solution can be very simple. Some people look at the end of the month to see if they have any money left, but you can also put money aside immediately when your salary is deposited. That way you avoid spending it on yet another pair of shoes.
Start building up capital
Crypto Harbor Springs will help you get more out of your money. We offer different types of savings accounts and you can invest with us at low rates. Open an account with Crypto Harbor Springs and immediately set up an automatic savings order so you can be sure that you put money aside on time every month.