Have you ever heard the saying that the only way to become wealthy is to earn while you sleep? If you try to interpret this statement literally, you may not arrive at a great explanation.
However, a more pragmatic view of that statement reveals that money does not sleep. While you sleep, your money is awake, waiting for the next instruction. It can only happen if you invest in ways that make your money work for you.
How to Invest money to make money
How can you find a viable investment to get your money to work for you? 90% of the global population lives in poverty because they do not have access to opportunities that can help them multiply their financial resources. Making your money work for you is taking charge of your finances and then using that power to shape your financial security and stability.
But it is vital to note that investment is not a get-rich-quick scheme. Building wealth is like any other construction process: it takes time and requires great caution.
Millions of people who ventured into an investment recklessly have returned with stories of doom and tales of woes. If you want to get rich through investments, you need to learn as much as you can about the type of investment you choose. A financial vehicle is the means through which you intend to achieve your financial target.
Here in this article, we will outline some investments to get your money working for you. It does not mean that these are the only investments out there or the best ones out there. We only list those investments that can create massive wealth for people who venture into them.
Several billionaires worldwide invest in these investments, and so it means that if you learn how to make money through these means, you will generate substantial returns. Having said all this, let us jump right in.
1. Invest in Real estate
Although real estate fluctuates in most parts of the western world, it is one of the best wealth creation vehicles. With proper education and skill, it can help you amass great wealth. Real estate presents a very high return on investment and is a substantial source of passive income.
Also, banks give preferences to investors who venture into real estate. They offer some funding and loan packages to realtors who buy and renovate houses. Besides the quick cash you can make in real estate through rent, you can also earn big from the increase in the value of properties.
If you want to build long-term wealth, real estate might be a better option for you. Most of the wealthiest people in the world own various properties that give them consistent returns from rents and capital gain.
Investing in real estate also gives you a large collateral pull for future business opportunities. But it is vital to gain proper knowledge of how real estate investment works before venturing into it.
2. Invest in a Flourishing Business
Building a business is by far the most rewarding kind of investment that anyone can try. But in this case, you have the money, all you need is a business with great potential.
Brian Sher; The author of Make Money Out of Thin Air; outlines the attributes that are valuable businesses, and his list include operation in large or growth markets; production of unique and timely products; selling only leveraged products; control of residual income; institution of ingenious systems; outstanding customer service; powerful brands; non-dependence on one person; usual market leadership; and attraction of the best and brightest people.
Building a business requires a lot of effort, especially when it is just starting. But with persistence and consistency, the company would gain ground, and it can then run itself. 99% of the wealthiest people in the world are people who built businesses. It is one of the best ways to get your money working for you.
Put your money in your own business or another business that is not yours, where it has the potential of earning more money and growing while you continue with normal activities of your life. It is, however, essential to note that business is not a shortcut to income. If you want to build businesses, you need to be patient because it may take a while to yield significant results. If you continue to work on your business, it is rewarding in the long run.
3. Invest in stocks
Stocks are financial vehicles that give you ownership in an established business or company. This article would not go into the details of buying and owning a stock. It would only present an overview of what it entails.
Buying a stock is like giving a sum of money to a friend to start a business, seeking to get a part of the profit in return.
In most cases, investing in stock is referred to as equity investment that gives you the privilege to earn a dividend. Your dividend is an amount of money the company pays you at a particular time of the year for as long as you hold on to the company’s stock.
When you buy the stock of any company, you will receive a certificate that guarantees your partial ownership of the company. And if you do not wish to hold onto the stock, you can sell it. You can now sell or purchase most company stock electronically through a licensed broker.
When you want investments that get your money working for you, purchasing stock is a brilliant choice. There are two ways that you can earn high returns from buying a stock. One is buying a stock that pays high dividends, and two is buying a stock that increases in value.
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If you purchased stock, and the value rose to over 50% of the amount you paid for it, you have earned a 50% return on your investment besides the dividend you got. It is best to take time to study the stock market before you decide to venture into it.
But here is the summary of the processes involved if you want to own a stock: Set Up an investment account, choose what to invest in, decide how much you want to invest, pay to buy you the asset you choose. Monitor your portfolio.
Other Investments to get your money working for you include Government bonds. Mutual funds, cryptocurrency, Retirement accounts such as 401(k)s, etc
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The Big Conclusion
It would help to note that investment is not a shortcut to wealth creation. It is a method of ensuring consistent growth of funds and money.
Inflation is the enemy of every currency. Holding your money in the bank means that your purchasing power keeps going down. It is a better idea to identify an opportunity to grow your money while focusing on living your dreams.