Making enough money to sustain your family and your business is hard. No way around it; it’s a simple fact of life. In today’s ever-fragile economy, practically nobody is safe from the effects of coronavirus on the world economy, and jobs are more at risk than they have been since the 2008 financial crash. Due to this fact, many business owners are paring down and becoming more careful, more frugal, and playing it safe. While playing it safe is sometimes necessary to achieve your goals and stay financially risk-free, making your money work for you takes guts, and isn’t for the safe-players.
What Does ‘Make Your Money Work For You’ Mean?
Making your money work for you means investing it. Money invested in assets means it can expand as the asset accumulates value. Take your home, for example. When you bought your home, it was worth what you paid for it. In ten years’ time, with good maintenance and the occasional renovation, it will probably be worth more. You have invested money in an asset which has then grown in value, and therefore the money you earn from selling the house will turn a profit. This is called return on investment or ROI. Your wealth has built up over time, simply by being invested in a valuable asset.
How Do I Invest If I’ve Never Done It?
Your home is only one example of a plethora of investment opportunities out there. Investment in assets doesn’t stop at homeownership; assets can also include land, cars, jewellery, or shares in a company. Many people own shares in the company they work for or have strategically invested in small businesses which are on the rise. Take Netflix, for example: if you had invested $990 in Netflix shares when it went public in 2002, you would now be sitting on $340,956. You didn’t go out and graft for that money, it simply increased over time, as the value of the company it is tied up in began to rise.
Of course, it’s not usually that simple. Buying shares or investing in cryptocurrency such as bitcoin, for example, is a risk. You are not guaranteed to get any return on investment, and if the business fails, you will lose money. That is why those new to the business should take advice from companies who use safe channels, such as Forex Trading, to invest. As well as this, it is important to start small, building up your investments once you gain experience and knowledge in your field of investment.
How Do I Get Paid From Investments?
This depends on the type of investment you have made. If your home is your investment, you will be paid either by selling it or letting it out to a tenant. If you buy shares in a company, you will be paid each year in dividends. Stock and cryptocurrency investments fluctuate, and depend on the channel you invest through.
Making your money work for you is an incredible way to sustain your income and help you achieve your financial goals!