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How to make your money work for you

By Miriatu

Every century has particular characteristics that mark the people of that century out. There are certain things that when you stop seeing them, then something in you should tell you that the season for those things have come and have gone. I take for example when you think of an American, what comes to your mind is a cowboy, a British what comes to your mind is a gentlemen, a French man what comes to your mind is someone who likes wine and food, and to an Italian what comes to your mind is someone who likes music. From this you understand that the people from these different countries are marked by peculiar features. Likewise therefore, social, economic, and most especially financial or monetary principles are evolving constantly. The world around us has changed but some of us have refused to change and this is one of the reasons why we are unable to break free from financial struggles and live a life of plenty and abundance. This is so because we have failed to adjust with the updated principles of how to use the money we earn to become richer. We live in an information age which implies how hungry you are for workable financial and investing information is how qualitative your financial life will be through maximizing the opportunities around you to grow rich. It is often said, “Information is power, information is knowledge and information is security.” This is undoubtedly true and therefore must be go for.     

            Most importantly, it is important for you not see life as something that you should be chasing after money at the detriment of your health, well-being and welfare because you want to become rich in a day. It comes with time once you are applying what it takes and therefore it is not instantaneous. There are many best ways through which your money can work for you without you working for money. That is to say in other words, how to put your money to work for you and earn huge dividends in return. This is something very important in the school of wealth creation. Therefore this article is aimed at showing you the best ways through which your money can work for you and fetches you much interests and wealth. It discloses extensively everything surrounding this subject ranging from; advantages of money working for you, difficulties involved in money working for you, encourages you to start with the money you have, shows you simple wealth pattern, money finance principles, your money works while you sleep and most especially how to grow rich. 

 

A). What do we mean by money working for you?

          Making your money work for you is simply money making financial goal. You have toiled so hard day-in-day-out to make money which is quite recommendable, but nevertheless, your money working for you means how to use your already earned money or better still income to generate for you much profits without having to work for it like you did when you personally worked to earn the money. This is as simple as A.B.C but tens of thousands finds it very difficult to understand and apply. It is very important because even though you may be very hard working towards earning your active income, it is an added advantage if you consider how the system of putting your active income fetches for you more interests without your working for it. Money working for you in other words is what we called your passive income. If you see your passive income beyond mere spending after earning or most probably put in a current account to be signing irrationally checks every now and then, you could end up broke along the way having nothing to keep you afloat. This explains why your passive income should be properly channel to work for you more and not be kept idle.

            For instance, Mr. Augustine works as a principal in a Government Secondary School where he earns a salary of $700 a month. In this salary, he chooses to save 35% of hismonthly salary to put it to work for him in the engine saw business in his village blessed with forest woods of all types. A single engine machine cost $1.600. So Mr. Augustine saves 35% of his salary for one year and raises the sum of $1.600. He finally buys an engine saw machine and releases it to a competent fellow who works and saves daily in his account a certain agreed percentage. This is just an ideal illustration of how your money can be working for you while you sleep and concentrate with your active income which is money earn from your profession or career.

 

B). Rules to consider in order to make money and have money work for you

            It is very important to lay down a solid foundation before moving to the ways through which your money can work for you. This is because showing you the best ways without throwing light to a few rules on how to make the money first will be like giving a man a big farm without a corresponding giving of the farm tools and seeds to plant on the farm. To have money work for you, you must first and foremost make money first.

i). You have to earn money

            If you have nothing doing through which you can earn active income, then switching to passive income will be very difficult. This is because simple wealth pattern demands that you have something doing first. In other for you to have money work for you, you have to earn first. There is no way you are going to get to what you want and where you want to be if you are not trying to get there.With money, this is pretty done straightforward. Do you really want money? Step out there and begin making it. Pick a job and most probably a second job especially if the job you do does not take you a whole day. For instance, a job like a teacher in secondary schools or the universities is likelihood. You could secure as many jobs as possible depending on how you handle them. Through this you will be able to earn more money and consequently plough back the money to now work for you. Start side hustling and doing side projects to make more money. Are you in college? Pick a side job in college to pay your tuition fees and handle other expenses. The bottom line is, if you want to have money work for you, you have to earn money first. There are potentially millions of ways to earn money, and you have to find out the best that you can do and get to work. Remember, nobody is stopping you as the choice is yours. There is absolutely nothing in your life stopping you. The only setback to you earning money is yourself.So, stop with the excuses and focus on rule number one to get money through services. This is one of the best money finance principles you should not forget.

ii).  You need to save until it hurts

            This second rule is very important. When you have a vision you stretch an extra mile to accomplish that vision. Because you h8ave to save money to have money work for you, you must have to save from your job or business like a wild cat. This explains why this second rule puts it that you save until it hurts. How to grow rich is not s bed of roses. It only answers to disciplined people with focus. This does not mean that you do this at the detriment of your own self and family, no. When you save extensively, you find it quite so easy to tap into the advantages of money working for you. Therefore, It is not enough to just earn money you have to save it as well. If not you will just end up like any of the affluent celebrities who have gone insolvent. Income alone just does not solve it. You have to save. But the real “rule” to make money here is to for you to save until it hurts. How much is that? Well, if you are not hurting yet, it is not enough. Saving until its hurt should begin from 50% and above. Remember the more it hurt, the more you your passive income working for you and the richer you grow. The truth is, following the first rule automatically makes this second rule easier to follow. The more income you have, the easier it is to save more and the higher you can puts the money to work for you. But even on lower incomes, you can still save and save very well.No amount of income is too small with vision and financial knowledge on how to grow rich.

iii). You need to optimize your spending

            The third rule to earn and increase money is to optimize your spending. I am not to question your spending habits.I strongly believe it is good to buy whatever you like but then strive to earn more money to do so. However, no matter what, truly rich people optimize their spending. This means they find lucrative businesses even if they are going to buy a Ferrari, you can ascertain they searched around for a deal and arrange the price. The knowledge here is to simply spend wisely most especially on your biggest expenditures. For most people, this could be insurance, cars, healthcare, vacation and more. So many people here just go for “whatever” without thinking constructively about what the choices really are. Rich peoples stop, think, and elect a choice that maximizes their profits while minimizing their expenditures. Don’t be in a haste to spend money. So, if you are ready to grow rich, begin identifying and optimizing your way of using income and the difficulties involved in making your money work for you will not catch up with you.Therefore, you are encouraged to start with the money you have and from that it will soar and your money works while you sleep.

iv). You Must Put Your Money To Work For You

            The fourth rule is that you have to put your money to work for you. This is our overall focus in this article and one of the best money finance principles of the time we live. It is a lucrative simple wealth pattern. Earning it is your part of the heavy lifting. You need your money and the power of your compound interest to work together over time to grow you wealth.What does this mean? It means that you need to invest. This is because the average inflation-alternated profit for the S&P500 for the last 60 years has been 7%. You need your money to rise and earn you more money. You need to begin building income sources with your income. The objective is that your hard labor henceforth can enable you build passive income streams for the future.Do you want to earn $70,000 per year without working? Here is a simple breakdown of howto make your money work to do it for you. This is all about making your money work for you and not against you.

v).You need to marry smart

            The fifth rule for raising money as well as having the money raised to work for you is to marry smart. Why? This is because a great spouse can be a huge multiplier force when it comes to making money work for you, while at the same time the biggest destroyer of money earned through putting it to work for you in the eventuality of a divorce. As a matter of fact, this is one the greatest difficulties involved in money working for you and your money works while you sleep. Moreover, a recent study found that divorce ruins 75% of personal net worth.On the building wealth front, a large duo can salarize together, accumulate together, and watch their both earnings compound over time. That is a huge force multiplier for building wealth. The interest on $5 is always higher than the interest on $3.However, divorce has the potential to destroy financial lives if you did not and will not marry smart. Above dividing things 50/50, there can be lawyer stipend and more. Additionally, accumulated interest now only has a minor amount to work with so it just grows slower.The fact is, though, that according to the American Psychological Association, 40-50% of marriages end in divorce in the United States of America. However, that doesn't mean that divorce has to be a financial chaos. If you married smart tostart with, hopefully your ex-spouse will also be financially savvy when it comes to divorce and you can work things out as amicably as possible.

 

vi). You Always Need To Minimize Your Taxes

            The sixth rule for raising money as well as having the money raised to work for you getting rich is always be minimizing your tax liability. Regardless your income level, you always need to be thinking about how to minimize your taxes. Taxes can hinder you realizing wealth over time because they consistently eat away at your income and investment returns.For example, the S&P 500 posted an average annual nominal return over the last 30 years of 11.09%. By and large, after taking into account fees, inflation and most especiallytaxes, the real profit an investor would have seen would have only been 5.97% according to this report. That is 46% of your return eliminated by taxes, fees, and inflation. This increases the advantages of money working for you and minimizes the difficulties involved in money working for you. However, there are many actions you can take to cut down on your taxes. First, take advantage of tax forwarded investment debits. Expanding out your 401k or 403b, take an upper hand of an Individual Retirement Account (IRA), and leverage a Health Spending Account (HSA).If you don't want to give up your hard earned money to the government, taxes have to be close to your thought pattern when making any money decision. This of course should never discourage you to start with the money you have.

            Having elaborated on the rules to consider in making money and having money work for you, I will like to show you now the ideal ways to make money work for you otherwise known as your passive income.

 

C). Best ways to make your money work for you

            Here we are going to examine some of the ways you can make money work for you and have your wealth increase tremendously;

i). Budget

                The most important way to change the way you handle your money is to budget. When budgeting you are making your money do what you want it to. By putting aside every dollar to a channel you are controlling where your money goes and what it does. This will help you to start to reach your financial objectives. Your budget is the best instrument you have next to your income to really establish wealth. Your budget put you in charge of your money finance principle, and allows you to make financial decisions at the beginning of the month. When you understand budgeting, it becomes easier for you to reach your financial goals more quickly and eliminates debt. A budget is related to a suited developmentand it helps you monitor your spending and income.  If you really want to alter your financial reflection, your budget is the very first attempt to doing that. Always people will set up a budget, but be unable to follow through holding to it or stop after few weeks. You need to create your budget each month, track your expenditures and make changes as needed so you are always spending less than you receive. When you reach the decisions prior on how you will spend your money at the kick off of the month, you can choose what are the most important to you and really begin to make progress on your objectives. This is very strategic on how to grow rich.

ii). Get out of debt

            Do you know how much money you are paying in interest every month month? How much of your monthly earned salary budget is being eaten up by student loan, car payments and credit card debts? If you can take the total of that money and put it into retirement benefits, it is surprising at how rapidly you could keep for your retirement and other things that you expect. Debt more regularly becomes a stress and reduces the options that you could take. Therefore, One of the most ideal things you may do with your money is to get out of debt and stay out of debt!Your debt limits your other opportunities. Just think what you can do with the extra money you would have each month if you were absolutely free from debt. You may also be apt to begin your own enterprise or quit a job you hate if you were debt liberated.Set up the time now to start coming out of debt. If you have a lot of debt, it may appear like a problem that is too big to address. However, you can begin by just clearing up your smaller debts and then work on tackling the bigger ones with the extra money that you owe. As you clear off more debt, and then introduce that money to the next debt, you start to establish strength and you will be surprised at how quickly you can get out of debt. In this way you save more money thereby putting to work your money; that is your money works while you sleep.

In a nutshell, you don’t have to focus on the difficulties involved in moneyworking for you but rather the advantages of money working for you. This is true because in life, for everything we venture into, no matter its advantages, it will have some difficulties which are challenges to overcome. Therefore snatch these advantages and start with the money you have into an investing sector and that money will work for you while you sleep. I trust with the inspired simple wealth pattern, money finance principles which this article presents, how to get rich will no longer be a mirage and a nightmare for you. All you have to do is to read through the rules and ways explained in this article and make sure you apply them appropriately. In doing so, be rest assured you will happily testify in no distant time of the insights received from this article.

 

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