Is it really true that the average person can make their money work for them?
Are there real options and chances for your money to work for you? So, that's what we're going to talk about today. You need to know the difference between gambling and investing if you want your money to work for you.
Gambling vs Investing?
In reality, they are very different. I'm not really talking about gambling when I say "speculative investment." Society has taught us a lot about how to invest money in 401(k)s, IRAs, annuities, the stock market, and our own homes. I want to use my sense of smell to figure out if I'm gambling, guessing, or making a real investment.
The difference is this. I need to ask myself a few things. The most important question is this one. Will my money be worth something? Do you get money from your investment? Let's check it out. 401k, if you put money into it, will it pay you back? It's not, no. What about your own account for retirement? It's not, no. Why don't you pay off the house? Bricks, what about them? Equity? Do you sweat enough? Not at all! Then there are annuities. What about investments? Not at all! What's that? Society tells us to put all this money into everything, including gambling. Know this: gambling doesn't give you access to your money.
How do you put your money to work?
Why gamble when you can Invest?
Look at the average first. At least do something that can make you money if you want to gamble or buy a lottery ticket. We gave the money to other people, and they told us we couldn't touch it. If you do this, we will fine you, tax you, and take the money you made from it from you. And guess what will happen if you call your financial planner and say, "Hey, I'm thinking about doing something else with my money." You dare not touch it! We live in a world like that. When you gamble, you won't make your money work for you.
What's different about a real investment?
Well, a real investment will do three special things, and I'll tell you what they are. Next, I'll show you two things that I spend time and money on every day. I follow three rules because I have put money into almost everything you can think of and spent money on things that don't make money. These three rules and two investments continue to pay off for me every year, over and over again.
We're done with gambling, the lottery, and speculating, so it's time to start making real investments. When I say "real investment," I'll tell you about two things I put money into and three things I hope will come from these two investments. Are you ready to use a pen and paper to write it down?
How do you put your money to work?
I put money into both business and real estate.
When I put money into real estate and businesses, they must do these three things for me. This makes sure you know how to put your money to work for you.
First, I can use my own money to buy them. This means that there is a certain amount of sweat equity, or that as soon as I put in the sweat equity, it has value on its own. So, for businesses, it is usually intellectual property and a book about running a business. This is a real asset in the world of real estate.
Cash flow is the second part of the real investment I want to make.
Why does cash flow matter? Because I got paid for it. I need every investment I make to make me more money. They should give me dividends. Real estate may pay me every three or four months, and so should successful businesses. Companies can sometimes pay more often than this. Once a year, maybe.
But are you sure? This was not the case with 401k or IRA for a long time. I couldn't touch it, and it didn't help me in any way. So, equity comes first and cash flow comes next.
The third point, about growth, is very important.
How do things grow? That means it has to get bigger. This means that if I buy a house with $20,000 in equity and a monthly cash flow of $200, the house needs to go up in value in the future. Because the initial investment, cash flow for a longer time, and regular pay checks all add up to a good investment.
No one can control or get their hands on these 401K, IRA, and other 3% risky investments. In business, I hope that my money will make me more. When I start a business or put money into a business, I want to have equity, cash flow, and growth.
Friends, this is what I look for when I make real-world investments. I will ask you to start putting your money into two different kinds of investments.
Those are speculative behaviours, also known as gambling behaviours, and those are real investments because they pay you money. You know that after 15 years and hundreds of different investments, I did narrow down the kinds of things I invested in and how I did it.
I hope this post about how to make your money work for you was fun to read. Feel free to share this with your friends and family to help them save money.
