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Don’t Let Your Wealth Slip Away: Tips for Making Your Money Work for You

Don’t Let Your Wealth Slip Away: Tips for Making Your Money Work for You

Money is a vital tool in reaching our financial goals and creating the lifestyle we desire. But a strategic financial plan isn’t just about earning a high income; it’s also about making your money work for you. 

At Wealth Management Solutions, our planning is your future, and we are committed to delivering our care, guidance, and course corrections to manage your wealth with purpose. 

Here are our top 10 strategies we provide to leverage your money in working for you, so you don’t have to work so hard for it.

1. Set Financial Goals

The first step in our Discovery Process is to set clear financial goals; after all, you can’t make your money work for you if you don’t know where you want to go! We make sure your goals are specific, measurable, and realistic. Common financial goals include saving for a down payment on a house, paying off debt, building up an emergency fund, and achieving your ideal retirement lifestyle. Once you have a clear goal in mind, we can create a plan to get there and manage your money in ways that work toward your ultimate goal.

2. Open a High-Yield Savings Account

Our investment process looks at three strategies, and the middle strategy is one of the easiest ways to make your money work for you—by putting short-term funds into a high-yield savings account. These accounts offer competitive interest rates and allow you to earn more on your liquid cash assets (like an emergency fund) without subjecting them to the volatility of the stock market. We can compare different banks and money markets and their interest rates, fees, and other features to find a higher-yielding savings account that suits your needs. While the interest earned on a savings account may not be as high as other investment options, it provides a low-risk way to earn passive income on your savings.

3. Take Advantage of Employer Matching Contributions

Our Planning process includes looking at your employer offering a retirement savings plan (e.g., 401(k) or 403(b)), to take advantage of any matching contributions. Employer matching contributions are essentially free money that can significantly boost your retirement savings. For example, your employer may offer a 50% match on the first 6% you contribute. If you earn $75,000 and contribute the full 6%, your employer contributes an additional $2,250 to your retirement account. That’s an extra $2,250 toward your retirement you didn’t have to earn or invest on your own! Our team assists you in contributing enough to your retirement account in your financial plan to maximize any employer-matching contributions; it can make a big difference in the long run.

4. Invest in Low-Cost Index Funds

The fee drag on your entire investment portfolio is important to address, and investing in low-cost index funds can be an effective way to reduce costs of managing your wealth. Index funds are a type of mutual fund or exchange-traded fund (ETF) that track a specific market index, such as the S&P 500. By investing in an index fund, you can gain exposure to a diversified portfolio of stocks or other assets with low fees and expenses compared to actively managed funds. 

Over time, index funds have historically outperformed most actively managed funds due to their low fees and ability to match the performance of the overall market. It is important to consider your tax control needs, risk tolerance, investment expectations, and liquidity needs when selecting investment options; cost is not always the best solution to cover all your investment needs. We’ve done our research and can assist you in selecting index funds with low expense ratios and fees, and discuss top investment trends while diversifying your portfolio across different asset classes to mitigate risk.

5. Invest in Real Estate

Investing in real estate is another way to make your money work for you. Real estate investing can take many forms, such as buying and renting out a property, flipping houses, or investing in real estate investment trusts (REITs). Real estate can provide a passive way to grow your wealth through rental income or appreciation in value over time. It can also provide diversification to your portfolio by adding an asset class that is not highly correlated with the stock market. 

However, real estate investing can be complex and requires careful research and analysis. You must understand the local real estate market, the costs and risks involved, and have a solid investment strategy before taking on real estate, so this tip won’t work for everyone. We can walk alongside you and advise you in making informed decisions.

Take the Next Step

Optimizing the potential of your money and making it work for you may feel overwhelming, but with the Wealth Management Solutions team by your side, we break it down into manageable steps to simplify the process. We can empower you by constructing comprehensive financial models and forecasts; as life circumstances evolve, we assess and adapt your plan so you can confidently steer toward your financial goals, even in the face of uncertainty.

Wealth accumulation requires dedication and time, but with perseverance and a strategic mindset, we can pave the way for a stable financial future. Take the first step today and schedule a complimentary consultation by contacting us at (949) 475-9700 or info@wms-llc.com

About Wealth Management Solutions

The story of origin: Wealth Management Solutions was created in 2003, following the personal family tragedy felt by the founding partner of the firm. Richard Riva lost his father unexpectedly and before any legacy planning was done that could have extended his family’s legacy beyond the fourth generation. Our partners and team members all share similar experiences due to a lack of planning for their families and are committed to preparing the next generation with the advice, planning, strategy, and governance to manage company assets, stocks, or inherited wealth. This is why we say: Our Planning; Your Future. 

All investing involves risk, including loss of principal. No strategy assures success or protects against loss.

The opinions voiced in this material are for general information only and are not intended to provide specific investment advice or recommendations for any individual. 

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