5 Tips to Make your Online Money Work Harder

Whilst I mostly talk about the art of earning money online, what actually happens once we earn it?

Do we throw it into a savings account? Does it help to pay your bills? Or do you spend it all?

Making Money Online is just like real life. There’s those that make a boatload of it but are used to a high standard of living & there’s those that don’t earn as much but are smart with it.

The more money you have the easier it it to accumulate even more. For example check out this incredible article over at Fool. If you save $1,291.66 per month at an 8% return it’ll roughly take you 22.8 years to save 1 Million Dollars. However, due to compound interest the next million will only take 7.6 years, provided you still save the same $1,291.66. So you can see yourself that saving your first million is by far the hardest thing you’ll have to do. Beyond that, things get much much easier.

Articles like this provide me with a lot of inspiration to save as much money as I can afford to whilst not comprimising my quality of life.

So here’s my top 5 tips for making the money you earn online work better offline:

Don’t Spend Your Money, Spend Someone Else’s: Initially this may sound a bit cheap but it’s not. When I say spend someone else’s money I don’t mean spending your Girlfriend’s (that’s a disaster waiting to happen), spend the Banks. Get a credit card with a decent limit, they usually give you around 55 days interest free on purchases. I put everything on this, PPC, Mortgage, Bills, Clothes. Everything. In the meantime my money is sat accumulating that 55 days of interest in my savings account.

Get a Cashback Credit Card: I use a credit card that gives me a 1% return on everything I spend. If I spend 15k a month on PPC that’s $1,800 cashback at the end of the year. You may need to get more than one card depending on what your credit limit is, as long as you can manage it. Remember, these cards aren’t supposed to supplement the income; they merely allow us to spend someone else’s money for those 55 days instead of our own (which we keep in the bank). If you have no capital to start with then I don’t suggest doing this.

Put all of your money in a High Interest Savings Account: I have an online saver account with ANZ which pays 7.75% interest on all balances over $2,000. If you’re spending 15k a month on PPC not only are you getting your nice $150 back from the credit card but you’re also earning 7.75% interest on your own 15k that’s sitting in the bank (which works out around $100). So there’s $250 for doing nothing more than you normally would.

Claim as much back on tax as you can: If you’re a blogger or an internet marketer you would be surprised at the amount of stuff you can claim back as tax:

1. Domains
2. Hosting Costs
3. Heating, Internet, Electricity & Phone
4. Outsourcing Design Work & Website Construction
5. Computer Software & Hardware
6. Office Supplies
7. Conference Fees & Hotel Costs (whilst away for business)

The list goes on. Always get yourself a good accountant to sort all this out for you. I get my tax done at the end of the year for a mere $80, which is an absolute steal.

Spread out your investments: It’s always important to spread out your investment portfolio beyond that of a high interest bank account (once you reach that stage). Often Stocks & Property can yield higher returns aswell as provide that additional security. Negative Gearing is very popular in Australia (whereby you can borrow a larger amount on a property then offset the interest against your taxable income).

*note: I’m not a tax or financial expert so please consult a professional before acting on anything you’ve read here.

Be smart with your money & you’ll soon find that it’ll be much easier to make.