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Growing up, it was engrained in us that for you to achieve success in life, you must work hard. This myth has been debunked, knowing full well that those who work the hardest are the least successful.
For sure, there’s a mirage of some level of achievement where hard work is concerned, but the fact is those who have gone to attain real success put in the least amount of work.
Millionaires and billionaires don’t achieve their level of material wealth by working hard, they become financially viable by making smart investment decisions.
One thing the pandemic taught us, is that many have devised means of making money without having to physically go to work. Study shows (according to Forbes), that nearly 500 billionaires were made during Covid-19 crisis as did countless millionaires.
Therefore beg to ask the question, what are the smart ways to make money work for us instead of us working for money?
Number 1- Money Lending
This is the primary source of income for all banks and financial institutions. If it is good for the banks, I see no reason why it is not good for you.
If you already have some extra cash on hand, you can earn even more by lending it out and charging interest on your loans. Although some religious beliefs are against such practice, the pragmatic nature of lending is financially rewarding.
Number 2- The Stock Market
You cannot fully understand the game of money or attain real wealth building strategy, if you don’t have some level of stock market knowledge. The billionaires of the world have what we call “concentrated wealth”.
That means that the Jeff Bezos, Elon Musks and Bill Gates of the world have majority of their wealth tied to the companies they found, in the form of shares of the business. In other words, they will only get richer because everything they have is in their stock.
Hence it is advised to concentrate a portion of your portfolio in these companies, so when they make money you make money.
If you have a job and pay pension, your pension contributions are deposited in the stock market to buy index funds, REITS & ETFs until your retirement. So why not learn and invest your money yourself for a much better returns?
Number 3- Own A Business
By owning a business we mean, own a fully functioning and viable business. Not owning a job that you cannot get fired. There’s a huge difference.
Amazon is a viable business because they sell almost anything without producing a product. Uber don’t own a single car but they are the biggest taxi company in the world. Air BnB don’t own a single brick but they are the world’s largest provider of short and long term homes.
When you have a restaurant or a business where you have to be present regularly, you simply have job like anyone else and the only difference is you cannot be fired.
Having a viable business especially when fully automated is one of the fastest ways to make money hands over fist.
Number 4- Real Estate
There’s a reason it is called “real estate”. It is called real estate because it is the only estate that is “real”. It requires a steep entry barrier in terms of deposit required.
But, if invested properly there’s no asset class like it. You can literally and legally pay zero tax unlike other asset class.
While rental property is cash flow king, the number one way to lose money in real estate investment is purchasing a property in your name. If you want to not make any money at all from real estate, then buy the property in your name for rental while keeping a day job.
Number 5- Cryptocurrency
As this is a highly volatile way of investing, the rewards can be enormous. According to Business Insider, Experts only recommend this method for people who feel confident enough to time the coin markets, knowing the fundamentals well enough to consistently buy at a lower value and sell at a higher value. People may even buy the same coin at different price points, using dollar cost averaging, provided they’re confident of selling enough at a profit.