If you Work for 40hrs per week for 4 weeks a month, you are toiling for 160 hours per month. That’s is 9600 minutes laboring. If you are not earning what you would want to earn, then this article is for. You can put part of your money to work for you. Imagine a situation where your dollar is working for you 24/7, all time including the time you are toiling. Start by asking yourself this question.
What is my net worth?
Your net worth is the difference between your total assets and your liabilities. Your assets could be cash, savings, mutual funds, home equity, cars you own, etc. Liabilities may include student loans, credit card debt, mortgage, etc. There are several free online tools to help you calculate your net worth.
The following are different ways to make your money work for you.
1. Track your Investments, Savings and Expenditures
In my previous article, I have written about budget and why you should budget. Downloading a budget up is good but it works better when we track our savings and spending. Budget helps evaluate the progress of our savings in comparison to our spending. We are also able to identify the point when we are to start investing our finances.
2. Get a Residual Income
Residue income involve setting up some work that will earn you income over time, instead of once. After doing the initial work to set up a residual income stream, you’ll have to invest less and less time moving forward. The goal for residual income is that it becomes passive income. In essence, you stop trading time for money. Your earning potential is no longer directly limited by how many hours you have in a day.
Start by looking into dividend-paying investments. Real estate investing can also be a great income stream, especially now that it’s so accessible online.
3. Become a Passive Partner in a New Business Venture
New business ventures require capital, skills and talents. Such businesses may lack enough capital to grow. In case you have some money you want to invest then it is an opportunity to invest, then sit down and watch your money grow. You can also offer your skills and talents at a price. Put all the money you earn from your side hustle toward your goal of making your money work for you.
4. Invest in Real Estate and Earn Money
If you have the cash and risk tolerance to invest in real estate, you should consider it. There are so many ways to invest in real estate these days and they don’t all require a lot of time. You could consider buying a single-family home to rent out. Use the rent money to pay the mortgage, build equity and maybe even some extra cash flow.
You could invest in crowdfunding online and buy into a larger real estate project. Or explore real estate investing clubs online and see if you could benefit from a professional’s expertise. Where you decide to invest will depend on how active or passive you want your real estate investing to be.
5. Enhance your Education for an Increased Earning Potential
Getting additional certification by going back to school increase your earning potential. Increasing knowledge in a specific area makes you an expert in such areas. The more expertise you gain in a specific field or subject area, the more valuable you become.
Investing in yourself may be the ultimate way to discover opportunities to make your money work for you. Come up with a way to provide unique value through education and expanding your skill set to make yourself indispensable.