I’ve been going through a couple of my past videos and scripts and I realized that one thing that I say a lot is make sure you have your money working for you and I realize that I never really elaborated on that statement so that’s what I’ve been doing this video in this video I’m gonna go over kind of what I mean about you know getting your money to work for you and the way I’m gonna do that is by going over seven different ways that you can get your money to work for you so we’re gonna get to this there in really no particular order but they’re all important to do to get your money to start working for you.
The first way that I want to go over and in my opinion this is probably the best way this is where your money’s working the hardest and I’ll kind of explain why and that is invest in real estate so when you invest in real estate the cool thing about real estate what kind of makes it stand alone is that you can really use leverage and you don’t get this as much with other kind of investments and that’s the idea that you can put down a fraction of the price and borrow a lot of money so if you’re buying a place that’s a hundred thousand dollars suppose you’re buying that property you can get in for 20% down for twenty thousand dollars get a loan for the rest.
So you’re getting the benefits of a hundred thousand dollar property while you only put down twenty thousand and of course you’re still paying a mortgage and everything like that but you’re still getting benefits you’re making money in many ways which is also unique to real estate you know you’re making of course the rental income but any extra income like application fees pet fees you’re also getting tax breaks and appreciation so there’s multiple different ways that you’re making money and that’s one of the unique things about real estate and of course the leverage side of it this is more so pertaining if you bought a property but you can also get into real estate in many other different ways you can see the video I made about how to invest in real estate with less than a hundred dollars so I recommend checking that video out but a lot of the real benefits will come when you actually get a property and then you get the multiple streams of income coming in in different ways so definitely something you want to look at this is something that I hope to get into in the future.
I have a lot of real estate videos on this channel and of course a lot more to come as I take get more and more seriously number two and when I say get your money working for you this is generally what kind of first comes to my mind and this is what most people think of and that is invest in stocks so the reason is because it’s very simple you know it’s very easy like you can start investing in stocks this evening if you wanted to and if you don’t really know where to get started you can see the video I made about how to invest in stocks every single step and I’ll walk you through that but the stocks on average will return you about seven percent on average every single year of course some years they’re down some years they’re up this year right like fifteen or sixteen percent year-to-date which is a crazy number but on average in the long run it’ll go up about seven percent so this is a great way to get your money working for you you can choose if you want a risky portfolio a conservative portfolio and you can kind of go from there but it’s investing is definitely some things.
I think everyone should at least have a little bit in stocks so definitely something you want to look into the third way to get your money working for you is through a high-yield seems accountant this is also called the high APY savings account a high interest savings account and what this is these are savings accounts that have a high interest on them so most bank accounts have a interest of very very minuscule I mean it’s 0.01% 0.08 percent but these these are specific mostly online banks that have high interest rates something around 1.5 to 2 percent are kind of that high range and this allows you to have a savings account that’s making you some money you know it’s not much but it’s a lot better than nothing you get elsewhere so I kind of think of this as the bare minimum what you want to do to get your money at least make it a little bit for you and that’s just getting interest through these high APY savings accounts.
So this is definitely something to look at I have a lot of videos about APY savings account that you can also check out so check out those out you maybe figure out what works best for you but this is definitely something you want to be doing don’t just have your money sitting in a savings account earning you nothing the number 4 way to get your money working for you is through retirement accounts now there’s a whole bunch of different ones the main ones out there are gonna be your Roth IRA and your 401k and you kind of got to decide which one works best for you I always said that if you have a 401k match opportunity with your employer then you’re definitely want to do that because there aren’t that many other places out there that you really double your money like that so it’s definitely something I want to take advantage of.
Otherwise you’re going to do a little more research into which one is best for you I’ll probably make a video on this but generally what happens is if you plan on making more money in the future then you’re gonna want to go the Roth IRA whereas if you plan on making less money in the future then you want to go with the 401k plan so you can look at the tax advantages and different things like that the reason for that is just when you pay taxes on each of them is different between the Roth IRA and 401k just want to figure out which one works best for you and as I’m saying this I’m like I should really make a video on this so I probably will so stay tuned for that one but otherwise look into which one’s best for you in retirement accounts are a great way that you can take advantage of different tax advantages that come with them and you can also get your money working for you through that the fifth way to get your money to start working for you is through credit card rewards.
So let me explain use an example what do we got here let’s go with we’ll go with these scissors so I suppose about the store and I see these scissors here my man those are some nice scissors they’re for sale let’s say there are $100 they’re amazing scissors maybe they’re wrapped in gold or something and 100 dollars is a lot but and then I have two options so I can pay $100 and I get the scissors or I can pay $100 I get the scissors and they also give me one dollar cash which one are you gonna choose basically everyone’s just common sense you’re gonna choose that second one and that kind of is what credit card rewards are for responsible people because credit card rewards are a way that you can get like cash back or points on what you spend so if you had a 1% cash back and you bought something for $100 you get $1 back and I did add there that you have to be responsible you know credit card debt is a very scary thing and you have to be responsible with it.
So if you’re not really that responsible you don’t quite trust yourself don’t get a credit card and you want to make sure it’s paid off in full every single month but you can definitely take advantage of credit card rewards due to the fact that you know it’s like free cash for stuff you’re already buying you know only buy stuff that you would only buy on the credit card so credit cards rewards are definitely something you may want to look into and I got a lot of videos here about credit cards so check those out as well but I’m gonna put these down as I’m like I talk with my hands and I’m worried I’m gonna like stab myself so we’re gonna set that down right there yes credit card rewards are definitely a great way to make some extra money and it definitely adds up it’s small but sometimes when I look at my credit cards I’m like wow that really added up number six is invested income producing assets because all in all this concept is not that hard you know.
This is not some crazy idea of how to get your money working for you no it’s pretty simple you take the money that you have and you invest it in assets that will make you money now the hard part may be deciding which assets to buy and the first I think most important part is to know what are your options so I recommend checking out a video I made about different income producing assets that you can check out so definitely go watch that video get some few ideas and maybe just a few that I’ve talked about in this video but I didn’t want to pertain it only to these so I wanted this one to be a little more general and just find anything that is income producing that you can buy to get your money working for you I mean that’s what this whole thing is about so six is kind of a catch-all one for any income-producing asset number seven.
This one will seem a little weird at first but I’ll explain it in just a second and that is budget so on its surface you’re like wait how would budget get my money to start working for me that doesn’t really make any sense and yeah on its surface the budgeting isn’t specifically making you money you know you’re not investing in your budget but no the budgeting is what is setting up the game plan for your income producing assets so it all really boils down to that budget because you don’t just kind of want to go really nilly like throwing your money into different investments.