Strategy 2 - Investing money to make money

Investing Money to make Money

I once read some research that said that “only 10% of worldwide millionaires inherited their money. The other 90% go out and make their own millions”.

The question we need to always ask is, how do those who manage to make their millions, actually do it – what do they do differently to us?

In this strategy of investing money to earn money, we will discuss the types of income that are the foundation to all earnings, unless of course you have been lucky enough to be born with an extravagant trust fund and you, unlike me, do not have to work hard and work smart for your money.

So, if you are simple, and not so fortunate a girl or boy as I am, I guarantee you this, that by understanding how money is made, you can better think about ways to increase what you are earning.

While this strategy of investing money to make money, though the more beneficial as compared to leveraging your time, it is unfortunately only used by a very minuscule percentage of our population. The number is small for the obvious reason - very few people believe that they have any money to invest. Wrong!

Investing money begins with the mere E200 you spend on airtime to call the person that truly doesn’t care for you. Think of the hundreds of Emalangeni you spent last month

§  leaving incessant voice messages on that boys phone. Yes, the very one who cheated on you to your face, and has a countless time told that they do not actually want to be with you.

§  on your 20^th pair of shoe, shirt and/or suit, which a week later you decided you didn’t like after all and threw to the extreme corner in your wardrobe to lie there amongst the many other clothes you wore just once – collecting dust.

§  Buying food and stocking our fridges only to open these packages two weeks later and find it’s all rotten?

§  on meat and drinks for “friends” who are not genuine and really don’t bring any value to our lives, but because we don’t believe we are enough on our own, we are special as are, we instead yearn to belong, to be loved, we will continue spending on them and have all our money wasted.

These are the very amounts we should be investing in order to generate wealth. What we need realize is in order to employ this strategy is that;

§  We do not always need to have a lot of money to start an investment plan. You can start small, and then grow from there

§  While we must get to know the basics, we do not always need to have superior understanding rather the simple ability to identify and follow the advice of a trusted, knowledgeable advisor

§  Investing the money is the easier part, learning how to attract and keep money is the most rewarding and solution with long term benefits

§  You cannot ever be financially secure, until you first learn to budget and understand the need to stick to that budget.

 

To be a successful investor, you need first define;

§  The type of investor that you are,

§  Your risk appetite,

§  The time horizon that you have to make and grow your investments, and then review

§  The different types of investments that are available to you