Make Money Work for You!

Hanifmr.com - I would like to show you why you shouldn't put your money in a savings account or even under the mattress, but rather invest it in assets. True to the motto: Don't work for money, make money work for you!

Unfortunately, many people don't grapple with the fundamentals of finance and don't actively care about their money. These people will never be able to build a fortune and will always remain slaves to capitalism. So that you do not belong to this group permanently, I have put together all the information you need here on this page to escape this hamster wheel.

The 4 Types of Income

Make Money Work for You!

I have already addressed this topic on my homepage, but I would like to go into more detail here because this principle is extremely important and you should internalize it!

There are essentially four different ways to make a living and only two of them can you get really rich and enjoy your financial freedom.

Workers

As an employee in a company, you exchange your time for money, i.e. you rent out your life. Income can be increased somewhat through promotions or higher education, but since your time is limited, your income is also limited. So this is the worst way to make money!

Self-Employed

As a self-employed person, you are your boss, but here too you only exchange time for money. If you go on vacation for two weeks, you won't get any more money. The income opportunities are a bit better here, but you also bear a risk here.

Entrepreneur

As an entrepreneur, you offer a product, service, or anything else that as many people as possible would like to have. So you benefit from the profit margin, even if you are not actively working, your product will continue to be sold. As an entrepreneur, you can buy in additional time (employees) and thus have unlimited income potential.

This type of income should therefore be aimed for, for example, you can create your website and sell third-party products (affiliate), advertising, or your information product here. There is virtually no risk involved in running an online business and you can easily get started in just a few minutes.

Investor

The last type of income is the best in my opinion. As an investor, you put your money in financial products that increase it in different ways. For example, you can lend your money to a private person, a state, or a company and receive interest in return. Or you can buy shares in companies (shares) and benefit from their profits.

As an investor, you have the opportunity to put your money in several companies and do not have to put your money on one or a few horses like an entrepreneur, which significantly reduces your risk. Another advantage is that you don't have to create your products, you simply benefit from the passive income of others.

In this article, I will explain to you how to become a successful investor and what you should pay attention to at the beginning!

How to Make Money Work for You?

There are countless ways to invest your money in the financial markets, and you can quickly lose track of things. Some of the products are so complex that even experienced bankers have their problems. But don't worry, you don't need something like that, you should keep your investments simple, this usually brings the best result.

How can you earn money as an investor and make money work for you? There are four known options:

Interest Income

By investing your money in fixed-income securities, government or corporate bonds, you receive interest on them. So you lend your money to someone (a bank, a state, or a company) and get a little more in return. This form is considered very safe, especially if you give your money to trustworthy eminent people.

So far so good, but the problem with these secure investments is that your money is usually tied up for a very long time and you also get a very low return.

Income from Dividends

Many companies give their investors a share of their profits through dividends. So if you buy shares in such a company (shares) you will receive your share of the profits annually, semi-annually, quarterly or monthly. This method is very popular and, with the right choice of companies, comparatively safe.

Income from Exchange Rate Gains

These types of investors are also often referred to as traders. They buy stocks, forex, CFDs, futures, and whatever else out there and hold them for a short to medium-term period. If the price has risen after two days or three weeks, the shares are sold again, and the difference between the sell and buy price is the trader's profit.

Income from Real Estate

This is probably the best known and also a very popular method to create passive income through investments. You buy a property and then rent it out. Many prefer this investment because the real asset, in the form of real estate, is supposed to be a very safe investment.

However, you have to note that the risk should not be underestimated here either. Vacancies, bad tenants, and repairs can quickly devour your returns.

Build Up Share Capital

You will now surely think that these are all great opportunities to earn money and make money work for you, but you simply don't have the share capital for it, right? Never mind, I feel the same way. It's all about understanding the whole thing first because then you can start building your wealth.

Here, too, you should already take advantage of the investment opportunities mentioned, because saving on a savings book or overnight money account makes no sense.

I think the bill says it all, compound interest is a powerful tool! Every percentage point you get more per year is important and gets you to your goal much faster. You will not be able to build up wealth with a call money account or a savings book, and with the current inflation and low-interest rates, you will even lose money.

Unfortunately, a lot of people are afraid of investing in stocks and funds, but they should rather be afraid of savings account. You now know the difference and can work on building your wealth.

The Best Way to Build Up a Share Capital

In my opinion, a fund savings plan is the best way to build up capital over the long term. Especially at the beginning, if you do not have any capital that you can invest, it is not worth investing in individual stocks with a small amount of savings every month.

With a fund, you have a diversified portfolio even with small amounts and thus keep the risk low.

HANIFMR.COM