Fundamentally, there are only 3 ways to MAKE MONEY in this world and you will need to choose at least one of them to survive, so which one is best for you?
In this blog post I will be outlining what those 3 ways to make money are and helping you to decide which one is best for you in creating and supporting the WEALTH, INCOME, FREEDOM and LIFESTYLE you desire.
The first method is both the easiest and most difficult method of making money all at the same time.
And that’s because it’s not really about MAKING MONEY at all and relies more on luck, but it does result in you having more money so I include it here for completeness.
1. You Are Given The Money
Some people are lucky and they inherit their wealth or they win it in a competition, lottery or something.
Others might be given money in the form of a divorce settlement, when they haven’t had to work for it, although some might debate this statement?
In any case, this category of making money includes everything that results in someone else passing their money onto you without you really having to do much to get it.
As far as money making strategies go, this is not one that I would recommend.
It relies too much on luck and is therefore not something that you can plan for and make happen yourself.
By all means, buy a lottery ticket, enter prize draws or marry a rich spouse if you want to, but don’t rely on it.
2. You Earn The Money
This is the route that most people take in life and there are several ways that you can do it.
This method includes earning money as an employee or by being self-employed or by owning your own business (entrepreneur).
How much money you make with your employment depends entirely on what it is that you do to make a living.
If you are a celebrity, sports star, big business CEO at the top of your profession or a successful entrepreneur then you can make a shed load of money this way but getting to the top of your profession or winning in business takes a long time, a lot of dedication, scarce talent for something and the right support from the right people around you.
The vast majority of employees and business owners make enough money to live on and to enjoy a few treats from time to time.
A significant proportion of us have good jobs or small businesses that generate enough money for us to enjoy a comfortable lifestyle, even if it isn’t the millionaire lifestyle that we dreamed of having when we were a kid.
As far as money making strategies go, this is the most common method of making money and is certainly the one you will have to start with if you’re not lucky enough to be given any money as in (1) above.
It does have its limitations and problems though…
Limitations Of Making Money Via Employment
The main problem with this route is that making money by working for someone else, working for yourself or working in your own business takes up your TIME and EFFORT.
Most people only have one full-time job or several part-time jobs that make up the equivalent of a full-time job.
Which means that your capacity to generate wealth, income, financial freedom, etc. depends entirely on what you are employed as and how much money you can get paid for doing it.
Working also requires some kind of physical and or psychological capability, which means that you have a limited time period within which you have the capability to work before you retire.
For most of us, that’s a working window between the ages of say, 20 and 65 or so.
Which means that you need to generate enough income during your working life and use it to accumulate enough wealth so that you can retire and live a happy retirement for many years after (health permitting).
According to recent wealth and retirement studies in the UK and USA, only 5% of us will have generated sufficient income and wealth during our working lives to live happily and comfortably in retirement.
The remaining 95% of you will struggle to live comfortably in retirement.
If you want to be in the 5% instead of the 95% then you will probably want to consider making money using method 3 in addition to method 2…
3. You Make Money From Investments
Making money from investing has its drawbacks but it also has some significant advantages.
First the drawbacks:
It goes without saying that you have to have some money to invest to start with and the amount of money you need depends entirely on your preferred choice of investment.
The second drawback is that you need to know something about your preferred choice of investment in order to know how to invest in it and make money from it.
This requires education, to accumulate knowledge and skills, which in turn takes some of your time and money to acquire and learn.
And most people can’t be bothered!
You can bypass the education bit, of course, and pay someone else to do your investing for you but I don’t recommend this because it eats into your profits too much and seriously damages your future wealth, income, etc.
I’m not going to go into why that it is here as I talk about it elsewhere on this site and it would take me away from the thrust of this article.
Now for the advantages:
A significant advantage of investing is that it is possible to make money from investments without taking up too much of your time or too much effort.
Which means that you can make money from investments while you are making money from your employment.
Like employment, the longer you invest for, the more money you will make.
So it is a good idea to start your investing career as early as you can and keep investing for as long as possible.
Unlike employment, as long as you have your mental marbles still in tact, you can keep investing and making money, long after you have retired from your employment.
I started investing when I was only 19 years old with just £100 that I had left over from my student grant at the end of my first year at university.
That was nearly 28 years ago and I have been investing much more seriously for the last 18 years with great results, alongside my employment.
And you could do the same.
If you’re not yet making money from investments, are you ready to take ACTION?
How To Make Money Investing
If you have some spare cash and you want to learn how to make money from it then you can get started by downloading the FREE guide below.
And if you’d like to know about the “3 BIG Mistakes That Beginners Make When Investing In Shares And How To Avoid Them” then click here.
In any case, please leave me a comment below and let me know your thoughts on making money or what drew you to this article today.