Make your money work for you we’re sure plenty of times you probably even heard us say it but what does it even mean or are they just loosely threw around words leading nowhere we can’t simply move a comma and add a few zeros. What can we legit do that can make our money do a little hard work to benefit ourselves. we’re not simply referring to one thousand into ten thousand dollars.
But rather focusing on financial strategies. That will work both on a micro and a macro scale let’s throw some ideas around today and we’d love to hear your input too welcome to alex.com the place where future billionaires come to get inspired. how do people with access to huge resources use them to their advantage?
What if you only have a little can you still make it happen. The answer is a resounding yes so changing your mind. Set is step one to push past the poor mentality stop telling yourself you don’t have enough time cash flow or connections to move up in the world begin on a small scale and then work your way up to bigger grander investments.
So what is a renewable source and how can we relate that to money the definition of a renewable resource is this a renewable resource is one that can be used repeatedly and does not run out. Because it’s naturally replaced. when you have your money working for you that’s exactly what it’s doing it doesn’t run out and it’s naturally replaced number two give your money a job now’s the time to assign a job to your money.
What do you want your money to do for you you need to provide your money with a job description. So it knows its purpose let’s begin with a simple example level one you pop your cash into a bank account and earn interest on it now your money is sitting there making it as a mall. But steady profit for you it’s working but not that hard level two you purchase a piece of artwork or a collectible and wait for it to gain value on a side note vintage lego is seeing massive returns.
So you can’t go wrong splurging there level three you buy ads for your product track down the profit from the ads and reinvest the profit for more ads and keep repeating that cycle here your money is being used to generate a constant flow of income while increasing your interest with each cycle it’s the perfect example of money working as a renewable source a luxury you are the CEO of your money now it’s time to play the role and get things working like a well-oiled machine number three real estate investment trusts or REITs.
When you think about investing in real estate you generally think of purchasing property fixing it up and renting it out and there’s nothing wrong with that as we’ve just highlighted in point number two it’s a solid investment however it along waits before you’re able to really benefit from it if you’re not keen on that path then consider investing in the rent this option provides greater diversification and offers better returns and generally lower risk overall they’re worth looking into as they generate dividend income along with the capital appreciation
Who said you can’t have your cake and eat it toffees are minimal and you don’t have to be actively involved in managing the properties so it’s a pretty hands-off property investment number four you could play it safe lexers we’re not going to get too much into detail here?
But you’re bound to know a little about each of these options and they’re great if you’re keen to keep a finger on the pulse at all times with your cash flow and how it’s working for you options include the obvious of paying off your debt it just makes sense like the Yiddish proverb says interest on debts grow without rain another go-to option is taking out a 401k plan.
Which have funds that range from conservative to aggressive bond ladders are a great option for passive income or you could opt to invest in a high-yielded the bonus here is you can choose an online bank which could offer better rates than your local bank and as long as it’s backed by the FDIC your money is safe investing in your children’s college education could also reap rewards but that’s further down the line and you’d need to start while your children are little to really get the benefit of the saving and interest rate in some places you might be eligible for tax rebates.
If you’re making substantial contributions to the fun listen to you are a badass at making money by Jen sincere it’s worth every minute of your time and will really leave you inspired to try some options on our list and try new ideas by cicero’s available to you on audible.com number five parking money dave Ramsey once said earning a lot of money is not the key to prosperity how you handle it is and on your financial journey there will come a time when you’ll decide that it’s best to park your money you will need to be smart about where you park it.
Because financial institutions will be lining up to get your funds don’t be fooled by the razzle-dazzle chat to your advisor before making any decisions these are the areas you’ll need to consider when choosing a short-term saving account access how often are you going to need access to this account.
If it’s a 30-day call account your interest will be higher than one you can access anytime. if it’s a minimum 12 month fixed deposit the interest could be even better. But then you don’t have the convenience of drawing.
When ever you please interest this is the most obvious point to consider shop around and see who provides the best interest rate penalties what if something happens and you need to access your 12-month deposit. what will the penalties be like and service ask around to see who others have had a great experience with often the razzle-dazzle salespeople lose their spark and you’re left frustrated annoyed and without access to your cash number 6 trade-ups hey luxury.
There’s an incredible true story called one red paper clip and it tells the remarkable tale of a man who bartered his way from a red paper clip to a house in 14 trades and only within a year kyle Mcdonald was inspired by a game he played as a kid called bigger better maybe you don’t have one thousand dollars to spare at the moment. So what do you have here’s where it gets fun perhaps you’re starting a health screening business.
Where you’re going into corporations and working out individual plans for each staff member to perform at their peak you have the skills to do the job well but you don’t have the budget to get the incredible website going. So you approach a website design company and exchange your services for a website it’s a win-win situation you get a great website and they get happy healthy staff the possibilities are endless number seven peer-to-peer lending also known as p2p crowdlending or social ending.
This act is gaining traction as a solid way to grow your capital before we explain the concept any further if you’re keen to get a loan but want to avoid going through a bank you might want to consider this option so p2p is an individual or a group of people.
Who lend people money if you’re interested in being a lender you’ll need to apply through certain websites and each site has their own rules and regulations since its conception in 2005p2p lending has grown by 110yearly each lending site differs in their loan rates eligibility loan amounts and clientele one major advantage of becoming a p2p lender is you can start earning interest from the first month. So you can immediately pump your interest straight back into the lending program as an investor you would decide what risk category you’re comfortable
Putting your money in the riskiest options can pay back as much as eleven point seven four percent interest while the least risky can pay around five percent interest number eight swimming against the tide hey luxury we’re not going to delve into investing here because at this stage we already know that if done right you can make a lot of money
But where the real money is where you’re going in the opposite direction to what everybody else is it’s all well and good buying stocks because everyone knows those stocks are on the good wicket but many investors are afraid to invest in a company that’s going through a slump fickle investors refrain from purchasing shares when the market has taken a knock and to prefer to wait it out.
However, this is often a perfect buying opportunity shares are more affordable and if you have the time to sit and wait your money will do the work for you without having to lift a finger one of the most successful and well-known investors of all time peter lynch spoke truthfully. When he said you get recessions you have the stock market decline
If you don’t understand that’s going to happen then you’re not ready you won’t do well in the market’s number nine invest in assets that will increase in value in our video 15 assets that are making people rich. We speak about the assets that are making people a lot of money they include real estate bonds stocks mutual and index funds patents trademarks royalties unique rights and books songs digital courses information or content and others the point of this video is to provide you with insight
That can help you take your earnings to another level with several of the streams mentioned providing a passive income you’ve done the job once but you keep getting paid for the content this is a great reminder of how money is simply a renewable source
If you know how to make money there will always be money sometimes you might have more sometimes less but accept the ebbs and flows of the dollar and with the time you’ll have more flow than ebbs with the dollars working hard for you to earn even more dollars number 10 invest in an idea that you believe has potential luxury.
There’s no point in having a huge bank balance and just hoarding it like Ebenezer scrooge what joy would that bring you one. so here’s a way to let your money do some hard work think shark tank-like Kevin O’Leary once aid here’s how I think of my money as soldiers I send them out to war every day want them to take prisoners and come home
So there’s more of them keep up to date with what’s happening in your community put your feelers out there for something that’s bound to be amazing invest in someone with a great idea drive and passion and let that person do the hard work for you give the advice to be a mentor and make money like only a true a luxury can now. It’s time to put those feet up and let your money do the work for you so what advice can you share with other lexers that will make their money work for them.
We always value your input in the comments below and since you stuck with us until the end thanks by the way you’re a true-lock sir we’ve got a bonus now we’re sure you’re feeling a little bit antsy about covid and what you should and shouldn’t be doing with your money at the moment the experts have spoken and dispensed the following advice leave your investments alone top-up your emergency savings to offer support to others.
If and when you can and above all else wash your damn hand thanks for watching lexers don’t forget to like this video and of course we have plenty more just subscribe to our channel for new content every day you.