While it may be tempting, riding the waves of Bitcoin may not be how to make your money work for you in the long-term. There are people who do get rich off of well-timed investments, but most stick to key wealth-building fundamentals. That means taking care of what you have, making appropriate risk-tolerant investments, and snowballing success.
Unlike those get-rich-quick schemes you find all over the internet, we’re not going to sugarcoat anything here. If you can follow these tips on building wealth, you can start to distance yourself from bad financial habits.
Erase Old Debt
The first step you need to take to get your money moving is freeing yourself from debt. Old debt affects your ability to budget for investment opportunities. Credit card and student loan interest rates create a slippery slope of cashflow problems.
The faster you pay off your debt, the less of a hit you take from the interest. The only debt you should have is through business loans and real estate loans. Borrowing short-term for a huge return on investment later is how you make your money make more money.
Passive Income that Works
Becoming an entrepreneur is something a lot of people try to do on their own. The truth is, starting a small business isn’t for everyone. That doesn’t mean you can’t start a successful side-business that makes passive income, though.
The difference between a full-fledged business and a passive income stream boils down to time invested. For most types of passive income, you put a lot of time into learning how it works, then it’s mostly hands-off. The income might not equal the consistency or scale of a diverse investment portfolio.
That’s okay because passive income streams are supposed to supplement traditional investments, not replace them.
More Money, More Management
Ultimately, you’re going to reach a point where you can’t scale your passive income on your own. In fact, the biggest difference between the wealthy and the average investor is management. Wealthy people aren’t personally counting every dollar they spend, invest, save, or lose.
You should consider hiring a financial professional as soon as you start learning ways to make passive income. Outsourcing your methods of passive income translates to money making money without needing to physically do any work. Take advantage of freelance services and virtual assistants to build on your success.
How to Make Your Money Work For You
Are you ready to learn how to make your money work for you now? Starting today, you can gain the business advantage needed to work smarter, not harder. We can help you put a plan into action and find new ways to build wealth.
It all starts with comprehensive financial planning at Dayton and Sydney. Learn how we can help you target potentially lucrative investments, obtain the resources you need, and plan your comfortable retirement.
Investments are subject to fluctuation in value and market risk, including loss of principal.
This article is for informational purposes only. Please be advised that this article is not intended as legal or tax advice. Accordingly, any tax information provided in this document is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. The tax information was written to support the promotion or marketing of the transaction(s) or matter(s) addressed and you should seek advice based on your particular circumstances from an independent tax advisor. PPG-139592 (9/19)(Exp. 9/20)
