Personal Finance: Six ways to multiply your money

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Like oxygen is necessary for human existence, so is money. It is a significant part of our lives. It is the reason why employees and employers wake up early and sleep late at night. It is the major reason why many acquire tons of degrees and qualifications to get promotions and earn more. However, it is important to look beyond earning more salary or income and focus your gaze on how to quickly multiply your earned income to become financially free so you won’t have to work another day. Here are the six easiest way to multiply your hard earned daily, weekly or monthly income.

Number One-Real Estate: When it comes to multiplying your money, the first and foremost direction to look is investing in real estate. Although this will require sizeable amount of your earned income, but it is secure and appreciates over time. When it appreciates, it can yield up to 200 percent capital gain over time. However, if you decide to invest in real estate, focus your energy on buying or creating rental properties. Creating rental properties, though may take quite a while to complete one, but it will give you the cash flow that can help you build your financial strength. Also, a property or more is perhaps the strongly collateral you can present if you need to borrow money from any financial institution.      

Number Two-Insurance: This is an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium. Now, investing in insurance is more like a backup plan for your property, business and life. Many rich and successful people invest in insurance because it is the surest way to protect your estate and self against any unplanned risk in the future. 

Number Three-Forex:  This is the world’s most traded market, with an average turnover in excess of US$5.3 trillion per day. Compare this to the New York Stock Exchange, which has a daily turnover of around US$50 billion and it’s easy to see how the foreign exchange market is the biggest financial market in the world. If you have opportunity to learn the rudiment and you are not greedy, you can patiently build your wealth trading forex. Although it is a volatile platform where your millions can vanish in a blink of an eye, it is also where your 100 dollars can turn into 10, 000 dollars in less than sixty seconds. So, if you want to trade forex, there are two ways you can do that. You either let a forex trading firm trade for you and your loss will be minimal. Or, you trade for yourself leveraging on a platform. But before you start trading for yourself, there are two rules you must not break for anything in this world. Rule number one, acquire the right

trading skills and number two, don’t be foolish to trade all your lot at once. If you do, it is at your own peril. 

Number Four-Paper Asset: Paper asset is the same as paper wealth, which means wealth as measured by monetary value, as reflected in the price of assets. Paper wealth is contrasted with real wealth, which refers to one’s actual physical assets. Paper assets refer to things like stocks, bonds, mutual funds, ETFs, CDs, T-bills, currencies or other types of futures/derivatives. Stock market investing is the most common generator of paper asset, which is also called portfolio income. However, if you are investing in paper asset, be sure to define the direction of where you want your money to go. A good advice for you, don’t start by diversifying. It is not a bad idea to diversify, but it is not wise for a beginner to do it. Put all your eggs in a single basket and watch the basket closely. 

Number Five-Setting up a business: This is one of the toughest things to do, but it is an awesome investment if you can build a business. I always say this; the money available at the corridor of starting a business can make you richer than a third world country. However, in starting a business, money shouldn’t be your primary focus, your focus should be to fill a need and the rest as they say is history. 

Number Six-Network Marketing: It is a type of business opportunity that is very popular with people looking for part-time or flexible businesses. Some of the best-known companies in America, like Mary Kay, fall under the network marketing umbrella. This is a way of leveraging on other people’s many years of hard work, strong brand and system to build your own small business. However, if you decide to invest your time in network marketing, take your eyes off the reward and run it like your own small business and definitely you will rise to the top of the pyramid. 

Number Seven-Intellectual Property: who would have told you that a common school teacher could be richer than the queen of England? That is the true story of the J.K. Rowling, the author of the Harry Potter Series. Intellectual property is the result of creativity such as patents, copyrights, inventions, literary (books) and artistic (artworks and music) works. So, if you are gifted in any of these area (inventing, writing, singling, painting, drawing or sculpting), then you are one step away from creating a lifetime investment for yourself. All you need to do is to focus your energy on your area of strength and again, as they say, the rest will be history.

culled from BusinessDay

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