How To Make More Money

“Poor people work for money; rich people have money work for them” This is a slightly drastic statement but the premise is correct. Everybody has 24 hours in a day, there are no exceptions, so using your money to make more money is like working a 2^nd job except you don’t have to be there. The more money you have the more you can generate… and so the cycle continues and compounds this is the principle of investing.

The second underlying differentiating principle between the poor and the rich is that the rich buy assets and the poor buy liabilities. Let’s define these for a moment as understanding this is the key to wealth creation. An asset is something that puts money in your pocket. Investments like real estate, shares, online businesses have the potential to do this. A liability is simply the opposite something that takes money out of your pocket. Most people today spend what they own on liabilities …. A new car or a TV or holiday in general the more they earn the more they spend on these items; a bigger house, a  faster car etc… This is the rat race that majority of the developed world lives in.  So when you have saved a little bit of money; ask yourself when am I going to buy? is this something that could make more money or something that the moment I buy it, it loses half its value?

Another important but very simple concept to help make more money is actually that of saving. Every time you save a dollar, you are probably saving $1.33 since to have made $1 you would have to earn $1.33 on which you would be taxed. So plan your time sensibly book holidays early, avoid convenience stores buy in bulk, turn lights off, save the planet and save yourself more money that can be invested.

Obviously life is a balance but I like to work towards buying something- so I invest until that money makes enough that I can buy it. That way I reward myself for my efforts and essentially it costs nothing (well none of the money I earned originally as this is all still invested).

Do all investments make money? No. You need to educate yourself, make intelligent financial decisions and learn from your experiences. To make more money, you must do the same as if you were learning any other skill- find something you are interested in then find someone who is good at it and who will teach you.

Lastly go and ask your boss for a raise (if you work hard and feel honesty you deserve it!) Chances are, they will agree. What have you got to loose? If you don’t ask, and you don’t question or negotiate you are very unlikely to get whatever it is you are seeking. If you are able to get comfortable with confrontation, this will impact your ability to make more money in more ways than you can possibly imagine. Good luck!