Many of us work hard for our money, but we don’t always use it to maximum effect. Learning how to make your money work harder for you is crucial for building long-term wealth and pursuing financial goals, such as buying a house, retiring comfortably, or building a college fund. The good news is that with some practical money management tactics, a little self-discipline, and prudent investing, your money can work just as hard as you do. Here are some tips to make your money work for you.

1. Set Goals – Start by writing out clear, specific goals for what you want to achieve – whether it’s buying a home, taking a dream vacation, starting a business, or working toward a comfortable retirement. Attach dollar amounts and timelines to each ambition. Once you have clear goals in mind, your financial advisor can help create a plan to help you actively pursue them.

2. Create a Budget and Stick to It! – Start by tracking all of your income sources and expenses to understand where your money is currently going. Draft a monthly budget that dedicates money toward essentials, while also setting aside funds in separate savings and investment accounts. The key is creating a balanced budget that combines your needs, wants, and savings priorities. Sticking to your designated budget requires discipline and is essential if you want to reach your goals. Make sure to revisit your income, expenses, and goals periodically and update your budget to reflect any changes.

3. Pay Off and Avoid High-Interest Debt – Put simply, high-interest debt can hold you back significantly from your goals. If you hold high-interest debt, make paying it off your top priority. If left to accumulate, it can be incredibly challenging to get ahead of it. Once you have paid the debt down, try to avoid taking on future debt at all costs.

4. Take Advantage of Employer Matching Contributions – If your employer offers a retirement savings plan, such as a 401(k) or 403(b) plan, be sure to take advantage of any matching contributions. These plans allow employees to automatically set aside pre-tax earnings toward long-term savings for the future while investing the funds for growth over decades. Employer matching contributions are essentially “free money” that you didn’t have to earn or invest on your own!

5. Diversify Your Portfolio – Diversifying your investment portfolio is key to balancing risk and returns. Rather than concentrating money only in one type of investment, make sure to allocate your funds across different categories, such as stocks, bonds, and cash equivalents, based on your goals, time horizon, and risk tolerance.

6. Invest in Yourself – A powerful way to boost your long-term earnings potential is to invest in building your skills, knowledge, and experience. Pursuing continued education and developing talents, whether through classes, training programs, or self-guided learning, can help enhance your professional value and salary potential. The ultimate goal is building toward financial security and independence, so dedicating time and funds toward elevating your earnings is smart money spent. Additionally, investing in health-promoting habits may help you save on future healthcare costs. Exercise and healthy nutrition contribute to a higher quality of life, both now and over the long run. Be sure to prioritize yourself and your well-being as part of your financial plan.