WEALTH SKILL #3: Making More Money with Money
Once you have your millions, you can become richer by comfortably sitting at home and letting your money do the work. Millionaires are richer not because they work hard to earn their millions but because they let their money work hard for them. If you are on the way to financial abundance, here are the proven ways to let your money do the work for you.
Investing is the wisest way to make your money work. However, wise investment is important for you to keep your money working. Before you invest, make sure you have the knowledge of the field where you want to invest. Invest in properties that appreciate in time like real estate properties and stocks. Do not invest in appliances, electronics or even automobiles. These things depreciate through time. This means instead of making more money out of your money, you end up with less.
Save in Banks
If you have extra amount of money, you can deposit it in banks. You can keep it safely and earn interest at the same time. Although the interest is not much, at least it earns compared when you keep it in your home. Other banks can give as high as 3% interest per annum. Time deposits earn more compared to ordinary savings account. The disadvantage of time deposit is you have to allow your investment to mature before you can withdraw your money.
Many people and small companies need money to start their own business or meet the ends of their financial status. When you help these people with their financial needs, you can charge them with interest. Just be careful when you give loans to people. Make sure they have the paying capacity to ensure your money‟s return or better yet ask for collaterals.