Is your money sleeping? Hopefully it’s not sitting under the pillow, but it may not be working for you. If your money isn’t working for you, it is time to wake it up.
A savings or checking account is good for everyday use, but that money rarely makes a lot of money. How do you wake it up and set it to work?
The most obvious choice for many is investment vehicles like mutual funds. These tend to accrue money over time, but not necessarily in the short term. Another somewhat less obvious choice is grants. For example, when we invest in our daughter’s educational savings plan, we invest it in lower-growth bonds. However, the government gives us an incentive payment every time we place money into the savings plan, and this nearly doubles the money that she has. Look for investment vehicles, grants, and programs that will increase your money over time.
If real estate is low in your area and looks like it may go higher in the future, and you have the resources to purchase property, becoming a landlord is another way to have your money work for you. In our particular area, it is a good bet that over a ten year period our home value will increase to ridiculous and astronomical levels. We live in a cheaper home in an expensive area that will continue to be valued, in part because there is an excellent school nearby and our townhouses are the only homes that are somewhat affordable for families. Soon, we plan to invest in some real estate in a similar area. If the rent covers the cost of the mortgage and your assets increase over time, this is a way to get your money to work for you.
Investing your time in something that produces residual income is another way to have your money and your invested time work hard for you. I write for residual income in some venues, and over time this has ensured that I make some money every month, no matter whether I’ve sitting around at home or writing madly. Residual often means that you do not get paid up front for what you do. Before investing a lot of time in a residual income idea, test it slowly to see if it actually works for you.
Working your money hard is not without risk, and you need to decide how much you want to risk to ensure a good return on what you’ve earned. As you save over time, working that money does help create wealth to fund retirement or other life goals. Then you can sleep easy, knowing that you are making money.