Top 7 Ways On How To Make Your Money Work For You!

welcome to the frugal genius where you master your finances and learn all about money how to make your money work for you once you figure out how to make your money work for you you can start to build wealth and live the life that you've always dreamed of while putting your money to work for you will help you to build wealth this isn't an overnight process the bottom line is that building wealth is the key to a stable financial future so using proven methods to do it over the long term is the smart responsible way to approach it here are the top seven ways to make your money work for you number one invest in dividend paying stocks investing in the stock market can be risky but if you do your research and understand market trends it's a great way to put your money to work for you when you invest in stocks that pay dividends you can earn money through dividend payments as well as the value of the stock going up investing in stock can be very lucrative but if you want to protect your money you need to adopt a more conservative investment strategy when you invest in stocks that pay dividends you earn money each time the stock performs well and are paid a dividend as long as the stock does well and appreciates in value you also earn money that way you can choose to sell the stock in the future and pocket your profits or you can hold on to the stock and keep earning money through dividends number two invest in mutual funds investing in stocks can be risky because there is always a chance that the stocks that you own will drop in value even if you are careful with your investments and do your homework you're still vulnerable because most investors only own a handful of stocks you could diversify and spread your money around into a lot of stocks and buy a small amount of each but you'll struggle to make a profit like this sure you'll be better insulated from potential losses but your goal shouldn't be not to lose money it should be to build wealth fortunately there's a way to diversify your investment into the stock market limit your risks and still earn a healthy return this can be achieved by investing in a mutual fund mutual funds are managed by financial professionals and are invested in a large variety of different securities this means that if a few of those securities lose money the overall health of the mutual fund isn't impacted much since a mutual fund is capable of investing far more capital in a wide range of securities it can still earn a healthy profit while remaining diversified and stable before we jump into number three please hit the like button and be sure to subscribe for more videos just like this number three pay down debt if you want to learn how to make your money work for you you need to learn how to keep it from negatively impacting your wealth the first step in paying down debt is to come up with a budget nobody likes living on a budget but if you don't then you are being financially irresponsible when you are significantly in debt you have to have the self-discipline to make a tight budget and stick to it when paying down debt you should usually start for high interest debt first that usually means credit cards if you're just making the minimum payment each month congratulations you're doing exactly what credit card companies want you to do instead of making that minimum payment start paying off big chunks of debt once you pay off one debt keep this up until you pay off most of your debts paying off your mortgage quickly isn't feasible nor is paying off your car but once your other debts are paid off you should start making extra payments on these debts as well while it will require some sacrifice paying down your debt is one of the best ways to build long-term wealth number four take advantage of credit card rewards if used properly credit cards can be powerful tools that will help you to build wealth if used improperly they will quickly bury you in debt what's the point here the point is that you don't have to be afraid of credit cards but you do have to be responsible with them if you use them irresponsibly it can take you years to rectify the error with all of the risk that's involved are they worth using in a word yes all you have to do is use them the way that financially responsible people do then you can enjoy their rewards what you can do to take advantage of these rewards is make purchases that you would normally make then pay the balance off before the end of the billing period this way you will get to take advantage of the rewards without having to pay anything to the credit card companies this is the definition of free money number five invest in retirement accounts if you work for just about any employer they're going to offer different types of retirement plans the most common of which is a 401k investing in these types of retirement accounts offers many advantages and you should start investing in them as soon as you start working it's never too early to plan for the future and start saving for retirement the first advantage of investing in work-sponsored retirement plans is that most of them allow you to invest pre-tax you don't pay taxes on your investment income which allows you to invest more money while seeing a lower impact on your paycheck you will have to pay taxes on this income when you start to access the money when you retire but the upfront benefit is still worth taking advantage of the other big advantage of these types of retirement accounts is the fact that most employers will match a percentage of what you put in so if you contribute two percent of your income and your employer matches it that's like getting a two percent raise on your income what you should do is find out how much your employer will match and if you can afford it contribute at least that much to your retirement account the amount of additional money that you get by doing this can help you to build your wealth allowing you to live at a higher standard once you retire number six become a silent partner in a business opening your own business can be very lucrative but it's also a lot of work that's why instead of starting your own business you should look to invest into another business and become a silent partner becoming a silent partner is the key here because once you start working at the business your money is no longer working for you investing in a business as a silent partner can be stressful and risky but it also has the potential to be very lucrative the most important thing to remember about becoming a silent partner in a business is that it's riskier than many other types of investments so you should only invest money that you can afford to lose investing money knowing that you could risk losing it but the potential reward is often worth it number seven invest in real estate at number seven we asked ron de la with flip academy on how to make your money work for you using real estate one of the safest and most proven methods for putting your money to work for you is by investing in real estate here's a quick and simple explanation of how investing in real estate can help you to build wealth first you find a property that you're interested in make sure that you get a property at a discounted price that doesn't mean the cheapest property it means a property that has good value in relation to what you pay for it if you can buy a property below market value then you're automatically starting out ahead next when you're in the process of getting a mortgage for this property make sure that you can pay it yourself even if you don't have a tenant there will be times that you don't have a tenant and you'll still need to be able to make that monthly mortgage payment once you're at a positive cash flow rinse and repeat and build your rental portfolio by leveraging debt we hope you enjoyed our top 7 ways on how to make your money work for you once you decide on an investment vehicle you can start to make your money work for you and begin the process of building wealth and living the life that you've always wanted look at each dollar invested as a tiny soldier out collecting pennies on the dollar for you don't forget to hit the like button and subscribe for more videos just like this thanks for watching

Channel: the frugal genius

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Keywords: How to Make your Money Work For You, how to make money online, how to make money, money, finances, business, make money work for you, make money, money making secrets, make money online, make cash flow, how to make passive income, passive income, how to make money on the internet, passive income ideas, working online, make cash online, income, becoming rich, how to become rich, profits, make real money, invest stock market, how to get rich, real investing, the frugal genius

Id: hMulgADRVPk

Length: 9min 19sec (559 seconds)

Published: Thu May 13 2021