- Personal Finance
6 Common Investment Vehicles You Can Use To Grow Your Personal Wealth
Until I met my mentor, there was always this idea in my mind. “To Be Wealthy, I must work hard and stay in a company for long enough to get promoted and get a pay rise”.
What is your opinion on this? Do you think the same as I did back then? Unfortunately I don’t know you and your way of thinking. Fortunately, I don’t need to. What you will learn in this post is so valuable that you need to pay greater attention. Why I say this is simple: I never acquired this knowledge from school. School only thought me to study, get a degree and earn a well-paid job and what they never told me was that I will work hard for the rest of my life and retire broke, frustrated and stupid.
The key principle I learnt was that to be wealthy, one must make money work for him and nor him working for money.
Key phrase: Make Your Money Work For You.
One of the reasons why many people work hard all their lives is they were thought to work harder than their money. In one of my seminars, an elderly woman asked me “I have been working for 20 years in this organization that really pays me well. What I don’t understand is that even though, I get good pay, all the money just vanishes come Monday of the fortnight week. So tell me how I can make my money work for me since it seems like I work so hard for money and still get nothing.
This article was written to answer that question.
Making Your Money Work For You
To make money work for you sounds simple in writing but it takes lots of commitment and tenacity. I like the word tenacity as it perfectly describes one entrepreneurial character that makes them successful. Refusing to give up is what the word tenacity means in simple terms.
Here is the magic word: Investment. Many millionaires and billionaires I have studied made their fortune through investment. That is of course raising capital by building business or by some smart ways and then investing that money into revenue generating assets.
Many people confuse themselves by taking their savings in the banks as investment. It is indeed, but is the poorest investment choice. Why? Because every interest you earn from your savings, you are taxed. So you savings investment does this: Moves one step ahead and one step back. Savings as self-made millionaire Jamie McIntyre says is “The first step you take to control your financial future”
That means, savings will never make you rich. But save enough and get the necessary education and create strategies to invest your money for either capital gain or cash flow. This is how the rich make money work for them.
- Real Estate
- Mutual funds
- Treasury Bills
Key Tool: Education
These are the possible revenue generating assets you can invest in. The question is how do you do it? That now becomes personal. The best investment you can make on your self is your personal education. Don’t think building business or investing in real estate and stocks is easy. If you do, prefer to loss terribly. If you kind of person who think this way, you will end up chasing opportunities and get rich quick schemes that are sure to wipe your savings clean.
Investing only becomes less risky and easy when you know what you are doing. The billionaire investor Warren Buffet said “Risk is doing what you don’t know”.
During the dot.com boon, hundreds of thousands of stock market investors rushed to buy dot.com stocks. Warren Buffet being true to his philosophy didn’t take part in the crazy boom as he said he didn’t knew how the dot.com companies made money. The dot.com boom soon turn to dot.com crash and many were wiped out whilst Warren Buffet proved his critiques wrong making more billions.
What should you do
- Have enough capital to invest
- Determine the type of asset you want to invest in. You do this by researching for information by reading, asking question on those that have been successful in asset you want to invest in
- Get to work straight away. Start small and build up your investment portfolio as you master the skills and confidence to deal with greater amounts of money
Don’t wait till tomorrow to invest. Tomorrow is the most dangerous world.
© 2013 Ian D Hetri