Money works for you, don’t ever work for money. Too many people let money master them when they should be the master of money. There are easy ways to make money your best employee that you have. After all, it never complains and never asks for a vacation. Take advantage of it.
Money is an awesome slave but terrible master. If you let it control your life, you will have a very miserable time because it is unforgiving. The ones who don’t master the game of money has to get on the rat race and have little chances of leaving it.
Once you spend money, you let go of all possession of that for someone else to take care of it. When you keep it and put it to work, it tirelessly works for you while you sleep to bring more of their friends to your possession. There are many ways to make money work for you.
It may take some time before you build up a sizable army to take more money prisoners to add to your kingdom. However, it may start off slow but it just takes off like a rocket quicker than you expect it to. One day, it may actually replace your day job income so that you don’t have to deal with a screaming boss ever again.
I take great comfort in knowing that money is working hard to make me richer. When I sleep, they are working as hard as they can so that by the time I wake up, I have more of it. I didn’t even have to lift a finger to do so. That’s the position that you want to be in.
When it happens to you, it’s one of the best feelings you can have in personal finance.
How to Make Sure That Money Works For You
One way to make money work for you is to DESTROY that social share button and post to your favorite social media! Your friends could use an article like this in order to live a stress free life one day. Where they get to dictate the terms of their life instead of the other way around.
So many people struggle with mastering money that they end up letting money master them. You will be shocked and amazed at how many people struggle with it. It’s more of a problem than you may think, even in the richest countries of the world.
Therefore, if you can help out your friends while doing a free thing like sharing an article, why wouldn’t you?!
So with that said, let’s go over the ways that you can make money work for you.
1) Track Where Your Money is Going
If you have no idea where your money is going, you will have no idea on knowing where to make it go. One way to do so is to create a budget and see if the leftover money in your bank accounts match your budget. The number that you are more interested in is how much your leftover money is.
Your leftover money is what’s called “savings” and/or “profit”. Profit is what’s used to keep moving you forward. Treat your finances as a business, no more and no less. Too many people think savings is what a “weak” person does. They mistake savers as “cheap”. That’s is so far from the truth.
Therefore, in order to know how much your profit is, you need to track where your money is going. Don’t be a part of the one third of people who pay for subscriptions without knowing it. To ensure money works for you, you have to know what money is up to. Track your savings and spending and see where you can optimize.
2) Save Money
You can’t make your army do anything if you don’t have an army in the first place. Therefore, try to save as much money as you possibly can. I save close to $80,000 per year. That’s with the help of a six figure salary plus cutting expenses where it’s not necessary.
I then use the funds to invest into a broad market index fund and let them do all the work for me. There’s always some way that you can save money. If your internet company increased its prices, it’s time to call them and remind them how great of a customer you were.
Same goes for your car insurance companies. Let them eat the cost, not you. As long as you’re a good customer, they’re more than happy to concede to your points. To make money work for you, continue to build up a sizable nest egg so that you can put more soldiers to battle in the war against working.
3) Invest in the Stock Market and Put that Money to Work
Now that you tracked where your money runs off to, you saved as much money as you can, it’s time to put the money to work. There are many ways to do so, but one of the best ways is to invest in the stock market. You can invest in individual companies but you can also invest in a broad market index fund.
This is not investment advice, this is just for informational purposes only. One good option is to invest in the S&P 500 and get a taste of how the entire U.S. economy is doing. An average 7 – 10% yearly return over the long term is about what you can expect. That’s a very good return rate.
One way money works for you is to put it in the stock market and let it ride until eternity. I would estimate I made close to $50,000 over the past five years investing in the stock market. The best part was that I didn’t do anything. I automated my investments so all I did was sit back, relax, and let the machine do all the work.
4) Max Out Tax Advantaged Accounts
Money works for you in your tax advantaged accounts. Take advantage of it. You don’t have to be Peter Thiel and have $5B in your Roth IRA. You can build your wealth the right way like everyone else instead of cheating the system. Take advantage of your IRA, 401(k), and HSA accounts.
The accounts are a fantastic way to not only make money work for you but to lower your taxable income. I max out my 401k and HSA every year, without fail. One account I failed to take advantage of is the Roth IRA. Too many people fail to take advantage of these accounts.
Especially the HSA. I was shocked at how many people didn’t even know about its existence and what it was used for. As a smart reader of Filled With Money, you can take advantage of the tax advantaged accounts and watch your wealth skyrocket.
5) Learn from Others Whose Money Works for Them
This isn’t an all-comprehensive list of the ways that money works for you. There are an infinite number of ways to make money these days. With the invention of the internet, there are more ways to make money than there are ways to lose money. Therefore, learn from others who made it work.
Maybe they let cryptocurrencies work for them and do very well at it. Or maybe they had another creative venture that they invested in that brought outlandish results. There are new ways to make money coming out every single day. The possibilities are truly endless, you are only limited by your imagination.
I would not be here today without the help of others who taught me how to correctly make money. I didn’t know which stocks to invest in, how to get started, or what the tax advantaged accounts even were. Therefore, learn from others who is already at where you want to be in the future.
6) Cash Back Rewards Cards
This is a fantastic example of the way the money works for you. Credit cards are wonderful wealth building machines. As long as you don’t carry a balance and only spend money on things you were going to spend money on anyway, you are doing great.
You can take advantage of those sweet, sweet cash back rewards points. They are juicy and delicious for you to feast on. Your money is literally paying you to spend it. For things that you were going to spend money on anyway. It can’t get any better than that.
I generate an additional $1,000 per year by using credit cards smartly. It’s money that I wouldn’t have had otherwise and it’s just icing on the cake. Wouldn’t you like to have an additional $1,000 at the end of the year? It’s additional money you can pocket to put it right to work on the stock market.
Money that makes money that makes even more money. Triple winning.
7) Start a Side Hustle
One easy way that money works for you is if you start a side hustle. Start a Youtube channel or start a blog. One $300 investment into a blog can turn into monumentally life changing money to you. All you have to do is put in sweat equity for a couple of years or so and let time do its magic.
The best side hustles are the ones where you do once and let everyone else take care of the rest. For example, Google works hard on every blog article that you publish so that it can index the article correctly for its readers. There’s no additional work done on your part, Google evaluates it for you.
It’s also work that you do once and let time take care of the rest. That article that you publish today has the potential to pay dividends for the rest of eternity, actually. Start a side hustle and see where it can take you after a year’s worth of consistent effort into it. You might be surprised.
8) Invest in Real Estate
Money works for you when you invest in real estate. There are inherent risks to real estate, just like with any investment that you make. However, the idea is that you can passively collect monthly rental checks from your tenants. If you hire a property manager, even better! They take care of all the maintenance problems for you.
On top of that, the icing on the cake is that you might experience price appreciation on the house. Real estate market has been HOT this past year and it may actually continue on indefinitely. Cash flow plus price appreciation sounds like a great deal to me.
This is one of the best asset classes that you can invest in, today. I would always favor stocks over real estate but real estate comes in as a close second in the list of good asset classes to invest in. It may take some time before you build a real estate empire but it may have been well worth it by the end.
9) Pay Down Debt
One of the easiest ways that money works for you. If your debt interest rate is 5% or above, then it’s a great idea to pay it down. Don’t think about it as “saving 5% interest” of your debt pay down, think of it as “making 5% return” on your debt pay down. A risk free return of 5% is PHENOMENALLY great.
I would take a risk free 5% return all day long and never look away. If you carry any sort of credit card balance, you should pay off those debts first. It’s almost robbery of what banks are allowed to charge credit card holders. This is one of the easiest ways to make sure that money works for you.
All you have to do is apply those savings that you saved up from 2) above to your debt. No other additional complicated work. You don’t have to put in more hours working. All you have to do is click a few buttons and shift dollars around. Easy and simple, huh?
Money Works for You, Don’t Let Money Work You
Too many people work for their money instead of the other way around. Money will take advantage of you if you are not careful with it. One reason why it’s more important than ever that money works for you is because of the tax codes. The U.S. tax codes heavily favor capital over labor.
The long term capital gains tax is capped at 20%. The taxes on the labor are maxed at almost double at 37% for 2021. Therefore, it is in your best interest to make your money work for you instead of letting your money work you. Millions of Americans live paycheck to paycheck because they submit to the power of the dollar.
Don’t spend money on things that are going to depreciate in value. Instead, spend your hard earned dollars on assets and investments that are going to earn you more money down the road. Without you having to lift another finger. Isn’t the goal to have complete and total control over your time?
Money is an unforgiving master. It doesn’t care about you nor for you. If you have to submit yourself to its power every day, you already lost the battle. When you subject yourself to the mercy of others, they are not going to be merciful.
They will take advantage of you in any way that they can because they can get away with it. People will take advantage of you if you are vulnerable. 99.9% of the people on Earth don’t care for you. They care about how they can use you for their own purposes.
It’s a cruel reality. Therefore, make sure money works for you so you can build up an army to fight off anybody who tries to take advantage of you.
9 Ways Money Works for You List:
- Track where your money is going
- Save money
- Invest in the stock market and put that money to work
- Max out tax advantaged accounts
- Learn from others whose money works for them
- Cash back rewards cards
- Start a side hustle
- Invest in real estate
- Pay down debt
