Twitch is one of the most common ways that a person makes money off of the internet. They play video games and use their personality to bring in viewers and funds. Once a person makes money off of Twitch, they have to then decide what to do with that money. Smart money decisions are essential to utilizing the extra money that a person may earn streaming.

Pay off bills

Jason Vanclef argues that the first step that anyone making money off of Twitch should take is paying off their debts. Debts are some of the most costly elements in any individual’s life. Interest rates mean that debts will cost a person more and more as time goes by. Paying off debt helps to decrease that money that a person has to pay and deal with. It can also help save a person a significant amount of money over time. Paying off debt improves a person’s credit score and reduces interest rates over a period of time. A slightly lower interest rate can save a person thousands of dollars when they are attempting to buy a house or make another significant payment later in life.

Buy real estate

The next step that a person making money off of Twitch should take is buying real estate. Buying real estate can be helpful in a number of different situations. A person can secure a home and start building equity with each payment. They can no longer lose that money with rent. Money from Twitch can be used to augment a person’s normal income for either a large down payment or a comfortable monthly mortgage payment.

A person making money from Twitch can enjoy all of the benefits of home ownership months before they would have been able to otherwise. Real estate is also beneficial as an investment. A person can make a significant amount of money by investing in real estate. They can do so by buying an apartment building or house and renting it consistently. A person can easily double their funds by renting the property at a high rate and then eventually selling that property for a capital gain.

Invest

Finally, people with Twitch income need to start investing once they have paid their bills and started purchasing real estate. Investing is the most effective way for an individual to build a significant amount of wealth over time. They can use the law of compound interest to improve their holding along with the returns of the stock market. Compound interest is the growth that occurs when an investment grows by a certain percentage each month. Growth increases as the base rate increases. This form of investment growth often occurs the most with bond funds and stock funds.

According to Jason Vanclef, investors can boost those holdings with bonds and dividend stocks. Dividend stocks pay a person a set percentage of each share price on a quarterly basis. These stocks may make a person a significant amount of money even if the actual share price drops significantly. Investors can utilize index funds that have incredibly low costs and significant returns over a long period of time. Investing is the secret to turning Twitch money into a comfortable retirement fund.

Conclusion

Money on Twitch may not seem like a lot at first. It may be nowhere near the amount of money that a person makes with their day job. But that money is always augmenting the amount that a person makes otherwise. It can be essential to boosting a person’s assets and eventually leading to financial security. Twitch can be the difference between financial success and failure for millions of people around the world