The fact of the matter is, you can’t work all of your life and you can’t possibly work enough hours to build real wealth. There has to be a point where you leverage your money to work for you. But what does “make your money work for you” actually mean?
Making your money work for you simply means that your money is doing the heavy lifting and multiplying itself. This is why it’s so important for you to build passive income sources and leverage your money to make more money.
Here’s the fact of the matter: It takes money to make money. So you cannot be afraid to invest your money to leverage it to build wealth, and ultimately create generational wealth for your family.
How to make money work for you
So let’s talk about the nine ways that you can leverage your money to make more money for you and do all of the hard work.
1. Use it to invest in yourself
First things first, you need to invest in yourself.
I know you’re probably wondering how this can earn you more money. When you invest in yourself–your education, your knowledge, and becoming an overall better person– you are then able to go out and make more money.
Say, for instance, you invest in getting some kind of certification or advanced education. You can then use the information that you learn and the skills that you gain to go out and get a high-income job. Or, if you learn something about investing or ways to manage your money, you can then manage your money better or invest better to make more money.
So the first thing that you need to do with your money, if you want your money to work for you, is to invest in yourself. Invest in your own personal and professional development so that you can acquire the skills necessary to gain more money.
2. Let it grow interest in a high yield savings account
The second thing that you can do is super simple. That is putting your money in a high yield savings account.
Now, a high yield savings account is just a savings account, that gives you a little bit higher annual percentage yield on your money. This means as your money sits in the account, it grows interest and that interest is paid out to you.
This is one of the easiest ways that your money can work for you is. Your money can literally sit in a high yield savings account and earn interest. You need to have money saved anyway, so why not put it somewhere that’s both accessible and provides interest?
The interest rates on these savings accounts do fluctuate based on market conditions; however, something is always better than nothing. You can even explore a money market account or a certificate of deposit.
3. Put it away for retirement
The third way that you can leverage your money to work for you is to save for retirement. This would include opening a traditional or Roth IRA account.
In general, retirement savings is really just long-term investing; however, there are limitations to how and when it can be accessed without penalty. You can save in an
This is one way that your money can work for you to prepare you for your future. By saving for retirement now and leveraging the money that you currently have, that money can grow over time. As a result, you won’t have to work in retirement.
When you save for retirement, your money is working for you over the years. When you get to the point where you just want to stop working, you have funds available to live off of. This is just one example of your money doing the work for you so that you don’t have to work in the future.
Now to maximize this, you also want to take advantage of a company match if you have it available. This is essentially free money. Not only is your money working for you, but other people’s money is working for you as well. So definitely take advantage of that if it is available to you with your employer.
4. Invest it in the stock market
So the fourth way that you can leverage your money to work for you is by investing in the stock market. This can mean investing money into mutual funds, individual stocks, ETFs, and more.
Investing in the stock market can be scary, but it is necessary if you want to build wealth. The returns from investing in the stock market outpace inflation. No other savings account bank account gives you the amount of yield that you will get in an investment account.
The average long-term market return is around 10%. You will not get a 10% annual percentage yield from a bank account. There is literally no other financial vehicle that allows you to make such a consistent return on your money over time. So you want to make sure that you are investing your money in the stock market in a very strategic way so that your money can work for you.
The great thing about investing in the stock market is you don’t necessarily have to wait until retirement in order for that money to be put to use. That money can be used now.
For example, you can invest in a company that issues dividends and you can use that money to go towards your financial goals. You can leverage those dividends to pay for things or to reinvest so that your money can grow even more.
This is literally the easiest way to make money! With a buy and hold strategy, you don’t have to do any additional. You’ll simply buy shares and not touch them for an extended length of time. Your money will grow over time.
Investing in the stock market is a must if you want your money to work for you. Here are some books on investing that you can read to learn more.
5. Leverage it to start an online business
The fifth way that you can leverage your money to work for you is by starting an online business. Of course, you can start a traditional brick-and-mortar business, but I specifically say online business because you’re able to generate passive income within an online business.
You can do things like sell digital products, earn money from advertising, earn money from affiliate marketing, and so much more! This is a passive way that you can allow your money to work for you.
Now, just because it’s passive doesn’t mean that you don’t have to do any upfront work. But once you have laid the foundation, gotten everything in place, this can be an income-generating source that you really don’t have to worry that much about.
The other reason that I specifically say online business is because it can literally cost $0 to get started. There are very few investments that cost $0 but can have an infinite return.
I definitely encourage you to start an online business. You can check out these articles for some ideas and tips on where to start.
6. Use it to invest in other businesses
The sixth way that you can leverage your money to work for you is by investing in a business. This means that you are not necessarily the business owner, but you may be a silent partner in the business.
By being a partner, you’re able to get a percentage of the revenue generated by the business. This is a great option if you don’t necessarily want to start your own business, but you do have some cash. You can use that to help someone else grow and build a business by being a solid partner.
7. Purchase real estate property
The seventh way to leverage your income to work for you is by real estate investing. Real estate investing is another wealth building mechanism.
This means that you own a real estate property and, perhaps, rent that property out so that you’re getting residual income or rental income.
There are tons of ways to get into real east investing. You can buy duplexes, commercial property, a single family home, and even land. You can even invest without actually owning a property!
If you’re not interested in owning a property, you can invest in a real estate investment trust (REIT). So this is investing in a company that owns income producing real estate properties like hotels, shopping malls, and other commercial properties.
This way, you can purchase a stock or ETF or mutual fund to be a part of real estate investing without owning a specific property.
8. Pay off debt and avoid getting into more
The next way to make your money work for you is by getting out of debt. This is completely different from the other things that I’ve shared, which are more along the lines of investing and making money.
Getting out of debt is important because when you’re in debt, your cash is tied up. This prevents you from doing some of those other things that I’ve already mentioned.
You want to make sure that your money isn’t tied up in things that aren’t allowing you to build wealth or make more money. The number one way to do that is by getting out of debt.
Work to pay off your student loans, your car note, credit card debt, and to reduce your overall debt burden so that you have more cash to leverage to make more money for you.
9. Be generous
The ninth and final way that you can leverage your money to work for you is by giving.
Sometimes you can’t always quantify what your giving does, but I’ll tell you that giving brings you a sense of joy. Not only does it help other people, but there is a law of reciprocity.
Once you give in we give it to you. It may not necessarily be in the form of money. It may be in the form of favor, opportunities, divine meetings, appointments, meeting the right people, and having the right doors open for you.
You can never anticipate or quantify the effects of giving. But one thing is for certain, when you do it, you will never feel bad about it.
So give! Be a generous person. That is the best way that you can allow your money to work for you–by helping others and by changing other people’s lives.
What to do to make your money work for you
The whole point is that you don’t want to be working harder, but you want to be working smarter. I’ve given you nine things that you can do to make your money work for you. Leverage each of them and watch how your money begins to grow!
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