“We go to school to learn to work hard for money. I write books and create products that teach people how to have money work hard for them.” – Robert Kiyosaki
I cannot recall when I first heard of the popular quote “Make money work for you” by Robert Kiyosaki. However, what I remember clearly is what fired up my quest to financial independence.
New Year of 2012 year-end 2011, out of nowhere, I have decided to include reading autobiographies of “great” and successful people to my New Year’s Resolution. I was looking at Barrack Obama’s biography, of Donald Trump’s, and many others on National Bookstore’s book shelves.
I was really clueless on what to buy so I decided to roam around more on the different sections of the bookstore, until I bumped on Robert Kiyosaki’s books. I have heard of Robert several times already, and I know he is popular. So, unceremoniously, I picked one of his books and went straight to the counter.
The Title of the Book?
Reading the book reiterated to me the famous “Make Money Work for you” quote.
Those were the times where my Financial Stresses are its peak, which probably was the reason why I was so pumped up when I encountered the quote again.
From then, I started my pursuit in learning more about personal finance – where I joined a financial networking organization, enrolled in the RFP program, and yes, built this blog.
But what does “Make Money Work for You” really mean?
We work (hard) to earn money and make a living. That’s the core reason why we have a job, or why we engage in business. We may have other reasons, e.g. to satisfy an emotional need, but only a few are really privileged enough to say that they don’t work for the money. For the majority of us, that is our reality.
And then, the default setting after all that hard work is to put the extra money in the bank.
There’s really nothing wrong with that, just that it’s not very efficient, a.k.a., your money is not working for you.
When we speak of making money work for us, it just simply mean having our “savings” generate a considerable amount of money on its own, thus, further increasing the value of our hard earned money. This could be in a form of interest, or capital gains (appreciation of value).
At that point, we no longer have to work for money to make it grow or increase its value. It works by itself.
What’s wrong with putting your money in the bank?
If you have been closely monitoring your bank account balances, you might have notice one line item that appear every month in your bank statement. Banks call this “Interest” and it is usually coupled with withholding taxes. And if you are really aware, you’ll discover how mediocre that interest is, and as small amount as it is, taxes are still deducted from it (withholding taxes). Imagine how little your money’s working hard for you?
Note that it’s still an example of making your money work for you, however, not the best one. And if you have been busy keeping yourself financially literate, you’ll discover that there are several more effective ways on how to effectively do this.
I remembered an example from one of Robert Kiyosaki’s books where he correlate money as your business’s employees. The context was if you are to hire an employee, you’ll make sure that you’ll make the most out of your investment in putting that employee in your payroll. That employee should bring the best value it can give to your business. Same way with your money, if you’ll be investing it in an investment instrument, you have to make sure that it will work hard for you by giving you more money! Putting it in a bank is not a very wise decision, in an investment perspective, these days.
There are several ways on how you can make money work for you. The most popular methods are by investing it in financial instruments like stocks, mutual funds, and bonds. It takes very little time to study and become familiar with these things compared to the time we spend in working hard for money.
We’ll be spending majority of our lifetime making a living, so it’s worthwhile to spend enough time knowing how the fruits of our hard work can efficiently work for us as well. I don’t think money is the most important thing in life, but its importance is inevitable for our existence.
Let us continue finding ways on how to make it efficiently work for us so we can finally concentrate on, what else, making the best out of our lives by putting more time on what matters most, that is, our relationships.
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