How to Grow Your Money

Do you know what rich people have in common? It’s their attitude and educational knowledge towards money. They invest with a long-term perspective, and they do not easily get deterred by the momentary turns and tumbles.

When you start putting money aside to invest you’re going to want to know how to grow this money in the most efficient way possible. That way you can get the biggest returns.

There are a couple of different ways you can grow your money on a high level. You will either go through a passive way or an active way or both. An active way is when you’re taking your money and you put it to work with your physical self. Basically, you will be using yourself or your time or your labor to grow your money.

Now when it comes to the passive way you are letting your money work for you to create more money. It’s like creating your own money printing machine.

A couple of examples of active and passive investing would be:

Active Investing

1. Starting a business
2. Investing in your education (this could mean buying books or buying courses. You’re investing in your knowledge that way you have the smarts to grow your money or do more things to build more wealth)
3. Start a Side Hustle
4. Stock Trading or House Flipping (Now this is if you want to go a little bit more in-depth)

With house flipping, you go out and buy a home that's being sold “as is” (or any home that you can afford)and you start to renovate it, then you can sell it. Stock trading you are basically looking for the next hot stock and you buy them to then sell and collect your earnings.

All of the above require active time on your part in order to make money. Of course, if you’re not actively trying to flip houses you’re not going to be making money. If you’re not putting in the work into your side hustle or your business then you won’t make money (at least in the beginning parts) and so on. You must invest your own time and have the drive for any of these to work for you.

Passive Investing

1. Stocks
2. Real Estate

I’m going to focus on stocks and real estate because these things have many decades of historical data which we have seen work over our time. The whole idea with this type of passive investing is you are going to work every single day to get paid. Now when you get paid you want to take some of your money and you want to invest it.

This investment is going to happen on its own that way you can spend your time working to get your paycheck, and now your money is also working to make you more money. Talk about having a great partner behind the scenes.

Each time you gain from your investments consider putting money into the funnel and now some of this money is going to be automatically invested to make you more money. You can keep on growing your investments effortlessly.

When you invest in the stock market you are buying ownership in companies. Now each time you put money into a company you are letting the executives and the people at that company work to grow the company. Also, they will make the company more money so when the business makes more then so do you.

You will get money since the stock price of the company will go up or you can collect the dividend if the company pays out one, and that is just for investing in a business you decide on. Dividends are a great bonus you can earn every month or quarter, basically giving yourself a raise. Who wouldn't like a raise?

Real estate on the other hand is now instead of investing in individual companies you can go out and buy properties. Let's say you purchase a single-family home and decide not to live in that home but instead rent it out. That way someone else is living in your property and is putting money in your pocket every single month.

This could range between $1000-$1500 every single month straight into your bank account. Now, this is the time you can relax on a vacation perhaps somewhere like Cancun. Enjoying yourself on a beautiful beach while drinking an ice-cold beverage. One look at your account and you see that you’re richer than you were yesterday.

At the same time, it does not have to be a single-family home. You can purchase a duplex then live in one unit while you rent out the next door. This would be a great way if you want to live mortgage-free and collect income every month from your tenant.

The difference between real estate and stock market investing is that in order for you to go out and buy a physical property this can take a lot more cash than it does to go and invest in stocks. You can start investing in companies with as little as $5 which makes it accessible to anyone earning a check. With real estate, you’re going to need a lot more cash to go and buy a property. Stock market investing can be much more passive because once you invest your money in the company you don’t have to do anything.

With real estate, you’re going to have to meet contractors, real estate agents, property managers, attorneys, and accountants. You will have to work with a lot of different people so you can get that property leased out. Don’t get me wrong this takes a lot of work but it can be completely passive once you get over the hurdle.

There are different kinds of business models with real estate and stock market investing. You have to find what is right for you by doing the most research you can. Remember this is to benefit your future lifestyle, the one where you just want to sit back and enjoy your life while watching your money increase and your family smile.

With real estate, you’ll get more cash flow. Anytime you buy a property you’re buying little streams of income. With stocks, you’re trying to get future appreciation with all those returns. At the same time, you can buy cash flow with stocks as well thanks to dividend-paying companies but, when most people are investing they’re looking for stock price appreciation. They are looking to invest their money today and they want to see the price of their stock grow.

The key for either of these to work for you as a passive long-term investor is you have to invest your money for the long term, and you have to keep constantly putting money into your investments that way you have more money to grow. This is something you can leave for your family for generations to come.

This is why it is very important that anytime you get paid you want to put more money into your investment accounts. Whether this money is sitting there waiting to be invested or actually invested, you want to make sure you keep compounding so your money keeps growing. Keep adding more money into the fire and that will keep increasing your income.

You will begin to see your wealth grow larger each month. Then soon after that, you will notice that money is no longer a stress in your life. You will have more control and freedom to do what you want and not have money be a reason to not enjoy life. It will cover your bills and you gain back the time to do what you want.

Written by: J