How Money Works!?

Next step after learning the financial intelligence is to learn how the money work to get it multiplies! In simple words, how money works to generate more wealth. And we would discuss the same in this article.

Money works to build wealth. Money can work for us and probably working for us (we might not realize), any penny we make outside of our job/earned income, that most probably denotes that money is working for us!

If you work for money, you give power to your employer. If money works for you, you keep the power and control it.

Robert Kiyosaki

Now, let’s see how money can work for us? Ideal way that money can work for us is to make money your employee by keeping it in your asset column. And there are effective ways to do so.

  1. Stock Market

It is not gambling if you know what you’re doing. It is gambling, if you’re just throwing money into a deal and praying

Robert Kiyosaki

Stock Market is the great place to buy wealth. If you understand it well, had knowledge of the scripts in which deals are to be made, had done with adequate research and most importantly, you have patience, then the stock market is eighth wonder that could buy you wealth. But again, I would like to add, if any script seems to complex to comprehend don’t invest in those opportunities just because your next-door neighbor has doubled his portfolio over that script. Stock Market is not speculation if you know what you are doing, it is that simple.

2. Mutual Funds, Bonds, REITs etc.

It is yet great way to make money, especially in the developing economies as investor if invest wisely can easily beat inflation rate and can create alpha (returns) over their investments. There are also schemes and bonds that are tax-efficient. Thing is again investors are required to have patience to face the volatility of the market over their portfolio. The more time the portfolio remained in track and undisturbed, more it can be volatility – proof investments.

Once the dollar goes into it, never let it come out. Think of it this way: Once a dollar goes into your asset column, it becomes your employee. The best thing about money is it work 24 hours a day and can work for generations

Robert Kiyosaki

3. Commodity

Since ages, precious metals such as Gold, Silver, Gems, Platinum, Diamonds and other precious gemstones are always seen as ideal investment objects. And it has its own weightage and uniqueness. Investing in the commodities also ensures capital gains/appreciation over the period of time.

4. Real Estate

Again, great investment options to earn the capital appreciation in any economy. This investment also provides rental incomes that could be one of the great way to optimize one’s passive income. But understand that only those real estate are considered as investments, that are not used for consumption by their investor. In other words, only real estate which is available for lease or rent and is also to be sold in right time is ideally considered as investment.

These above mentioned are the effective way you can make your money your employee. This way you can buy wealth from your own money. Stay tuned for the next lesson!

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