Do you ever feel like no matter how much you work you simply never have enough money? If that’s the case, then maybe it’s time you start doing what the rich do and start putting your money to work for you!
Rich people aren’t rich because they work longer hours or are smarter than you. Most of them built their wealth by using their money to invest in things that will grow in value or produce more income.
Here’s how you can do this too and start using your money to earn even more.
1. Leverage the Power of Compound Interest
One of the simplest ways to make your money grow over time is to invest it and leverage the power of something called compound interest. Simply put, compound interest is when money grows on top of the money you’ve invested as well as any other earnings you’ve accumulated.
For example, if you invested $6,000 per year for the next 30 years, then you’d eventually have $180,000, right? Thankfully not!
Thanks to the overwhelming power of compound interest, if we assume an average growth rate of approximately 10 percent per year, you’d actually generate almost $1 million! You can try this for yourself using this free calculator here.
Getting started with investing is easier than you might think. You could start contributing to your workplace 401k retirement plan, or you could independently open a similar type of retirement account such as a traditional or Roth IRA. Read Why You Should Start Your Retirement Account ASAP to understand the importance of starting to save early!
If you don’t know what into consider going with an index fund. According to Vanguard founder Jack Bogle, index funds are among one of the best long-term investments you can make. Pick from index funds that invest in stocks, bonds, or even the broad market.
2. Buy Income Producing Assets
Financial investments aren’t the only way to put your money to work. Another strategy is to purchase something called assets. My favorite definition of an asset comes from the book Rich Dad Poor Dad: An asset is something that puts money in your pocket.
Here are some popular examples:
- Rental properties – Homes that you lease to tenants either independently or through popular services like Airbnb.
- Dividend stocks – Shares of a publicly-traded company that pay you a percentage of the company’s earnings, typically every quarter, simply for being a stock owner.
- Digital real estate – A website, social media account, or YouTube channel that attracts thousands of monthly visitors and pays you for the advertising.
3. Invest in Yourself
Never forget that one of the greatest assets you have is yourself and your ability to learn. By focusing on your capacity to grow, you can develop the right skills and talents that are in demand and will ultimately earn you more money.
Take, for example, someone who enrolls in an online course in how to become a graphic artist. Between the class and the software, it may cost them $500. But now that they can apply this expertise as a side hustle, they can find work online and earn an extra $10,000 to $100,000 per year.
There are lots of these types of gigs that easily pay upwards of $1,000 or more per month. But before anyone will hire you, you’ll have to develop the right skillset first. Do this by taking classes on sites like Udemy or by watching tutorial videos on YouTube.
And most importantly, never give up!
Key Next Actions:
- Take 5 minutes to list all the ways you want your money to work for you. I recommend reading 3 Simple Ways You Can Start Investing Money to help generate ideas.
- Circle your top three ideas.
- Schedule time within the next three days to spend at least 20 minutes investigating your top three ideas on your list.
- Select the one idea on your list that you feel drawn to the most.
- Start working on that one idea (schedule a consistent time, educate yourself in that area, and determine how much you want to invest).
LEARN all that you can, BELIEVE in yourself, and take actions that allow you to GROW!
Get your FREE copy of the 5 Keys To Success Guide (click here).