Rich people work hard. That is why their wallets are bulging with cash, and they can have every luxury their little hearts desire, right? Well, that is what the media would have us believe. But in reality rich people are clever, and they plan their finances according to what they have and how they can use that to generate more money in their future. They also don’t have every single thing they want to but keep an eye on their money, choosing to invest it things that will truly bring them pleasure, and not waste it on items they don’t really need. It is this mentality that we can learn from to look after our own finances and grow our own wealth in the future. Just read on to find out more.
Working smarter not harder
Many of us have had to take a second job when the going got tough, just to make end meet. But if you think the secret to growing your wealth is working all the hours that God sends, you are sorely mistaken.
It’s not about working harder at all, but about working smarter instead. But what does this actually look like? Well, it’s not about taking a second job like the ones suggested at http://ringgitohringgit.com/side-income-malaysia/, unless you are looking to make some initial capital for investment purposes. Instead, it’s about putting the resources that you do have to use in a way that will increase them, without you having to do very much at all.
Investing in property
One way that you can do this is to invest in property. There are several methods of doing this, and they are not entirely effort free. But the good thing about them is that once you have made your purchase, it will only require minimal maintenance, something that you can outsource, yet it will retain its value.
Firstly, there is what is known as flipping properties, something that you can find out more about at https://wealthmasteryacademy.com/flipping-vs-buy-hold-what-are-the-pros-cons-and-which-is-best-for-me/. Essentially this is where you buy a cheap property at auction that usually needs to some cosmetic work doing to it. The idea is to get this done quickly and on budget, then resell it for a profit.
The second method is to invest in a new property to rent out. This could be rented as a full-time home. Or if it’s new property in an exotic location, such as http://www.propertyguru.com.my/resources/buy-property-guide/the-complete-guide-to-purchasing-a-new-development-property, as a holiday home. Although you will always have the capital invested in this purchase to fall back on to borrow against, or sell when the time is right.
When renting our property, the idea is that the money you collect from the tenants pays off the mortgage and any fee associated with its maintenance and upkeep. Giving you an investment that isn’t costing you anything to run. Then when the time comes, you can sell the property on, and the money that you have paid off of the mortgage goes back to you in profits from the sale.
Staying in control
Instead of investing a lot of time in a second job, or various side hustles use that time to better monitor the current use of your funds.
It’s a crying shame how many people actually have more than enough money from the one job they do. But always end up feeling poor because they don’t manage it properly. That is why it’s worth setting monthly budgets and tracking these. You can even consult with financial analysts too, to help you know exactly where you are with your money and how you can spend it more sensibly.
The rich get richer
The thing about money it’s that it really doesn’t have any value in itself. It’s just a symbol of worth. The problem with this is that people can confuse money with the value of what it can get them, namely a more pleasant life. This can lead them to amass a whole load of the stuff but never spend it, primarily because they are using it to base their value as a person on.
Of course, this is a big mistake, because without the associated rise in the standard of living money is nothing but an empty token.
So instead of sitting on your money, you need to get it out there in the economy working to generate more income, and one of the best ways to do this is via the stock market.
There are many different types of investments you can make in this field. Including shared stock, common stock, preferred stock, penny shares, and bonds.
Of course, each has its advantages and disadvantages. So, as with any activity where you are going to invest a substantial sum of money, you have to research things thoroughly before you make any decision on which to buy.
It’s also poignant to remember that the value of the stock can go up as well as down. So no investment is guaranteed. Having said that, it is widely believed that if you can keep your investment in for a long enough period of time, you are likely to be able to ride out any crashes. So regaining your initial investment and making a profit.
To do this it’s best to create a portfolio of different investments that come from varied areas in the market. The idea being, if one isn’t doing so well, you should be able to rely on the other ones to compensate for any loss.
Lastly, if you feel stocks are too risky an option for your hard earned cash, remember that you can make money on your money easily with a savings account.
Look for accounts that have high-interest rates like the ones at http://alatonline.com/compare-the-top-savings-accounts-bank-rates.html. As these are usually available for bank customers that have larger amounts to save and pay in every month. Meaning the more money you have, the more it can make you by doing this. In this way, you really have to do very little to expect a decent increase in your wealth.