Making Money Work For You

Plugging into the traditional analogy of seeing money as an army of soldiers, it makes sense to send that army on a mission to capture more soldiers that will help build your empire. After each mission, you integrate the captured soldiers into your army, debrief and train them, then send them on another bigger mission. As the cycle continues, you will eventually, be able to conquer vast lands and achieve massive riches.

In a nutshell, that’s what making money work for you is about, seeing money as soldiers that you send on a mission to build your empire. Let money do the heavy lifting in bringing you closer to your goal. Of course, this will also require a certain shift in perspective. The first and foremost is seeing money as a renewable source.

Seeing Money As A Renewable Source

It’s no doubt that there are a number of ways to waste money. But as an investor, business owner or entrepreneur, you will be familiar with the saying about making every dollar count i.e. making the most out of it. Seeing money as a renewable source is understanding it from a numbers perspective, turning $1 into $10 then $100 and so forth.

A good example is reinvesting the profits of a business into the business to generate more revenue. Let’s say I own an ecommerce business that sells beauty products. I took all the profits and bought ads with it to reach a wider audience. This brings in more sales and more profits. With more profits, I will be able to reach a much wider audience. This then translates to a much larger profit. Rinse and repeat. The cycle just continues.

This simple yet fundamental formula can be applied in different other ways and not just in business, for example, investing. However, the principle is always the same, leveraging your money to make more money. This is what is meant by seeing money as a renewable source.

Now, Lets look at two ways to make money work for you.

Parking Money

This is the traditional way of putting money into savings to earn you interest. The interest might depend on the time frame or how long you’re willing to park the money. Usually, longer time frames yield higher interests.

Here on Hive, you can earn a 20% APR on your Hive Backed Dollar (HBD) when put into savings. This is a very good return in the crypto space and it’s also better than what traditional financial institutions like banks offer. Better yet, with the emergence of Decentralized Finance (DeFi), you can wrapped that HBD and send it to Cub Defi to earn a higher APR, around 32% to be precise..

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Parking money is a great way to put your money to work around the clock instead of sitting there idling in your account. As always, you have to find a way(s) that work best for you and your goals. Anytime you have some money idling around, you can send it to work by parking it somewhere to earn interest.

Trade Ups

Trade ups is mainly about jumping from one financial bracket to another. Let’s take Mark Cuban and Elon Musk as examples to illustrate the concept. Elon Musk in his teens started a web software company (with his brother) that later got acquired by Compaq. He used the proceeds to start an internet company (X.com) that later got integrated into PayPal. PayPal was sold and those proceeds started two new companies, Tesla and SpaceX. Through SpaceX, Starlink was born.

The same thing more or less happened with Mark Cuban. He started with MicroSolutions, then when the company was sold, he joined Broadcast.com and the of the company made him a billionaire. He's attributed with the saying that you only need to succeed once. This was indeed a homerun for Mark because it happened around the dot com bubble, right before the bust.

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They actually share some common traits!

As you can see, trade ups is pretty basic and you can see its footprints when you look through the journey of many wealthy individuals. It’s just that here you’re doing it with money. Of course the system or vehicle also plays a part in the process.

You put money in this vehicle to drive you to this location, and then you put it in another vehicle to drive you to another location. From there, you put it in a different vehicle to drive you to a further location. This goes on until you reach your destination i.e. actually become wealthy.

In Conclusion

Making money work for you is akin to planting seeds that will-with time and some nuturing-grow into huge trees. All you have to do is plant the 'right' seeds and water them in the early stages. After that, you can sit back and let the environment do the work for you.

P.S - Not financial advice. For infotainment purposes only. Do Your Own Research!

Thanks For Reading!

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