Are You Working For Money Or Making Your Money Work For You?
Are you working too hard for your money?
Discover the difference between working hard for money and how you can make your money work for you…
I genuinely believe that there is a key factor to become wealthy and financially secure. You need to diversify, diversifying your income to not rely solely on working for money. You need to find ways to make your money work for you, making sure you are compounding your efforts and taking advantage of compounding interest.
The average person will have a job, that is their sole source of income. They exchange their time for money and may have some savings earning a small interest from their bank. A recent study stated that the average millionaire has six or seven income streams. It’s not just about making money; it’s about making your money make more money.
Money likes to flow and flow freely. I like to think of money like soldiers, once you make money you want to put them to work to bring in more money. The first experience of this was through music and intellectual property. I would record a song, and every time that song gets streamed or purchased, I would earn a passive income. Books, music, films are great examples of passive income; however, they are not easy to access. Property investment, however, is a fantastic way to use your money to generate additional passive income. That’s why many, many wealthy people choose to invest in property in one way or another.
Listen to the rest of this episode to hear how I could start with £30k and use that investment to generate passive income compounding through the Rent-to-Rent property investment model.
In this episode, you will discover
The key generating wealth
The importance of compounding your income
Ways to generate a passive income
How I have been able to compound my income through property
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Podcast Transcript↓
[00:00:56] Hey Simon here. Welcome to another episode of the podcast, where we focus on all things, property, creative cashflow, and of course, how to be financially independent to day, not in 25 years. And the topic of today's show is going to be all about money. All you working hard, too hard for your money, or are you making your money work for you?
[00:01:28] And I genuinely believe that is the key difference between, you know, the average person and a more wealthy, financially secure person. They found ways to not rely on just working for money, but they're making their money work for them. And it's all about compounding efforts compounding in chest and over time, that becomes super, super powerful.
[00:01:57] So yeah, before we get into it, Merry Christmas, hope you had an amazing day and time with your family is absolutely been a tough year. And I know. If you're like me, I can't wait for 20, 21 new star new year. I'm going to be setting some new, fresh goals and push them forward. And hopefully we're going to start to see the back of this, um, seaward stuff and be able to move, move forth.
[00:02:26] But it's a really, really important time to reassess and just look at exactly, you know, where you're at and where you want to be. And I think this key key little thing could make a huge difference in your life. If you can start to implement it. And I know it's made a massive difference for me. So what I mean by this is the average person probably has a job and that is their sole, uh, main source of income.
[00:02:55] So they exchange their time for their money. They work for their money and. You know, they might make some savings. And once upon a time, they might've had a little bit of interest from their bank account, but these days interest is a Bismal. It's terrible. So generally speaking, if that's you, you can't even consider the bank in, Chester's an income stream.
[00:03:20] You've got one source of income or they say the average millionaire, I think has six or seven income streams. So it's about not making the money, but then making the money that you earn work for you and create more money. It's like get your money to have babies. And the way I look at money now is they're almost like your workers or your soldiers.
[00:03:47] And once you make the money, you want to put them to work, to bring him more money. Um, and the way money works is it likes to flow. It likes to flow freely. Have you ever noticed that, you know, you might get a pay rise, you know, get a lottery when somebody reaches out like the, um, the utility company reaches out to let you know that they owe you 200 pound you've overpaid and you start to build up this positive momentum.
[00:04:16] That to the same degree. If you're in a bad momentum, you know, you might get a car parking ticket, the tax, my Mike commons, actually, you've underpaid. You need a bit more. And, and the car brakes go all at the same time and that's the way money works. It likes to flow. So once you make your money, the worst thing you can do is hold onto it and not let it work.
[00:04:41] You know, these soldiers, these workers, they want to work. So, what I've learned is that once you've got that income coming in, you've got that 5,000 or 10,000. You need to find ways to make that money grow, to make that money work for you. Uh, my first experience of this was through music and the intellectual property and how I would record a song.
[00:05:06] And every time that song got streamed or purchased, I would earn. So, you know, things like books, music, Film and all that stuff, you know, it's got a great passive income element, but obviously that's not available to everyone. And property is an absolute beast at doing this. And that's why a lot of wealthy people, in fact, most wealthy people are involved in real estate property in one way or another.
[00:05:38] So Whiteside had it a little bit in, in music. It wasn't until I purchased my first investment property and I started, you know, I may be put 20, 30 K I think it was 30 K into this property. And every month that 30 K was working for me and bringing me in 600 pound net profit every month. Okay. And then what I was doing is I was building up the six hundreds until I could do.
[00:06:05] Uh, rent to rent and in that rent to rent would earn me say another 600. So now I'm earning 1200 pounds a month. Okay. And then those 1200 pounds, I would build a buildup. And then every four or five months, I could do another rent to rent five, six grand. And then all of a sudden it was nearly two grand coming in every month.
[00:06:24] So that meant every two months I could do a rent to rent and then it built up to five grand. And then every month I was doing a rent to rent. Now I do about three or four rent to rent in one month. No problem. And as you can see the role of compounding every single time, this money compounds. And it's got to the point now where, you know, every three months, not only can I do a good amount of rent to rent, but I can also purchase a property all through making the money work.
[00:06:55] So what I really want for you guys is to make that transition. If you are working for your money, And at the moment, you're not making that money work for you. Think about ways of doing this. How can you find ways to do it a great way, ways property, um, if, if you can't afford to buy, I always recommend rent to rent.
[00:07:19] Even if you can't afford to buy. If you listened to last week's episode about owning and control him, you know, is it best to own property or controller? You will see how powerful rent to rent can be. And I could do 10 rent to rents for the same money. It might take me to do one purchase and the 10 rent to rents would bring in 10 grand a month.
[00:07:43] And the one purchase would bring in one grand a month. So you want to find ways to create these income streams. You know, as I say, the average millionaire Fink has six or seven income streams, and then what you do when you get this money coming in, you don't want to blow it. You want to reinvest that. So it compounds and only spend the money that this is a bit of a tricky concept to explain, but they say, for example, you earn 10 grand, you got 10 grand in a bank account.
[00:08:16] You want to make that 10 grand, earn another, say 10 grand, and then spend that 10 grand not the first 10 grand. Don't spend your money, spend the money that your money earns for you, and you will grow wealth at an alarming rate and don't get me wrong. It is a long game compounding, but once you start to build up momentum, you'll be so surprised.
[00:08:42] And it it's, it's the best feeling to just see this money coming in, that you're not having to work for. And that's financial independence. Because once your passive income, the income that you're not working for overtakes, or is equal to the money you are working for, you can leave your job. You can retire or you at least have the option of walking away from that job.
[00:09:08] And that's what it's all about. That's why I started this podcast because I was so sick of having to work so hard for my money and working for other people, making other people rich. And, and I was like, no, no, I need to change this. And I was also really sick of. You know, getting money and then just giving it to somebody else straight away.
[00:09:35] It's a crazy concept. You work so hard for this money and then you give it to someone else. That's why the saying is pay yourself first. So what I really, really strongly recommend is whatever you're bringing in. Make sure. The you'll take in a percentage of that, even if it's just five or 10% at the beginning and paying it into your investment account so that you have got a kitty building go up, that you can get to work for you.
[00:10:02] And you know, obviously I'm not an accountant, I'm not a financial advisor. So I can't give open advice on this, but these are just my opinions, my experiences, and. Honestly, I really think 20, 21, if you're not already doing this stuff, you want to stop China, make your money work for you. It's a great feeling.
[00:10:23] Um, and just one final thought, don't be afraid to outsource, you know, it's not just about making your money work for you, but it's also about making, making, not making, but, um, allowing. And embrace in other people, working for you. So what you can do is you can reinvest that money in yourself. You can reinvest that money in other people to free up your time.
[00:10:51] You can reinvest that money in better skills and talents so that people that are good at stuff or have expertise at goo don't come fast-track your journey. You could reinvest that money into your business for a massive amount of time. I wasn't drawing money out from. My property business. I was just reinvest in it and compounding it and don't be afraid to do that.
[00:11:16] So that's all from me, guys. Thank you very much for tuning in. Thank you very much for supporting me all of this year. Um, happy new year to you and your family. I'll see you on the other side on one more thing. Don't wait 25 years. Get creative. Thanks for listening. For more information, check out Simon Smith, online.com. See you next time.