How to make your Money to work for You?
We all work for money and how many of you had thought about making your money to work for you? Your money matters helps you in make your money work for you.
What will you do if your employee in your company is not working properly. Probably you may try the below things,
- Educate him about the importance of his role
- Train him to get relevant competence
- Final warning
Last step would be to make him leave the job. Think about your money, you work hard to earn money. You compete with your competitors in getting the project and with additional taxes being paid, you go through one lot of hell in making business.
Enjoyable part is only if you toil hard and get adapt to all the situations, you can make more and more money on the way. After a certain time you know how to handle situations and you will make it.
Let us find the ways to make more money and make it work for you,
1) Be a business owner or entrepreneur
2) Solve a bigger problem to make bigger money
3) Start saving & investing, find out the reason why?
4) Avoid bias
5) Analyse the products
6) Take out expert advice
Be a business owner or entrepreneur:
The coolest thing to do is to become an entrepreneur on the backdrop of Flipkart making billions by selling their majority stake. You need to understand the hardships they had gone through in the last 10 years by coping up with competitors, initially it was local and once Amazon was in it was really hard to compete with them and they survived.
Once you have the passion for what you are doing, you will reach the skies and that is possible only when you become an Entrepreneur. If you are in salary job, your role is limited to the role you are performing. You can go beyond a point in your salary job.
Solve a bigger problem to make bigger money:
Next big step is doing what you are dong. If you are doing the same thing for the next 10 years may be you can survive with your name and competency but you will not make more money.
Handle more projects or clients to make bigger money. Get required software, automate things so that you handle bigger things easily. If you arena among the many who believes in doing the same thing and expecting more money, surely you will not make it.
Try to address the pain point of the clients or customers in your business, then automatically they will grow in your business.
Make your Money to work for You:
Once you start earning, start saving. That is the first step towards becoming financially free. It is also the step towards becoming rich in your life. If you are not married you can save close to 30-35% of your income. Once you are married, the expenses increases with addition of new members in your family. Make sure you save at least a minimum of 20% if your income.
Start saving & Investing, find out the reason, why?
Start identifying the goals in your life, it can be money for your business, for your kids education, for their marriage, for your new home, for your retirement etc. There can be “N” number of financial goals in life, ultimate part is you need to allocate money for each of them separately so that you will not close in between.
If your goals are higher you need to save a lot and then invest, then you need to make more money to achieve all those goals. Hence we are saying as solve bigger problems to make more money.
Most of you would have invested based on the advise from your parents or your neighbours or friends etc. In most of the cases you would have invested just for the sake of investing for them. This is the first step and there are many bias which comes into play once you know about assets, investments and how this works.
The most common biases are,
- Confirmation bias
- Trend chasing bias
- Hindsight bias
All re purely to get positive support in what we are doing. Confirmation bias makes you 100% correct because you are choosing the product based on the confirmation from your friend. Trend chasing bias is nothing but you will chase the current trend, take the case of Bitcoin investment, it was the rage from January and once most of the countries came strongly against it, the reduced started wading off. These are the people who invests when the market is at high and sell when it is falling. Hindsight bias is another such bias where you will have string conviction based on the results you are seeing from the past and you will not try to get contradicting details about your decisions
Best thing to do is avoid all the biases and check out our next tip.
Analyse the products:
This is the best thing you can do, now as everything is available online, get the details from he product representative and start verifying on your own. It is your hard earned money and now tis the time the to make your money work for you.
List out the negative things that may occur for that product and ask the clarification from the representative. Note down what are the measures you need to take in case of risk occurs.
Take out expert advice:
Finally if you are busy with your work and feel that this product choosing is not your cup of tea, final step what you can do is identifying the right financial advisor. Check out how to find the right financial advisors so that your money is working for you.