Hey Veterans: Do You Know How To Generate Wealth Starting With Little Money?
Are you one of those hard workers who hope to have wealth when you retire but are feeling frustrated?
Does it seem like a task so daunting that you just don’t want to be bothered with it? Or do you have a little savings stacked up and want to rev up the returns?
If so, then you might be ready to put a portion of your savings to work in slightly riskier ways. In America, the adage is true: “No Risk, No Reward!”.
But we need to level up your understanding of personal financial literacy concepts make sure you take justifiable risks let’s examine some of the more popular suggested things to do with your money
What To Do To Grow Money Quickly
In the 21st century you have to be financially capable to survive. If you don’t have the ability to make your money work hard for you, it is likely that you will be an employee well into your seventies or eighties.
Some of the more popular trends in wealth building today are trading investments, super savings, and business endeavors. These three are can yield good returns depending on your risk tolerance as long as the proper strategy is applied.
Can I Make Money Trading?
Of the three methods listed in this article, trading is by far the most aggressive and dangerous. For that reason, we don’t recommend it unless you will be strictly working with 5% of your total liquid assets (meaning cash and investments that can be easily sold). Why? Day-trading or just having a high trade volume monthly can easily draw an investor into to a gambler’s mentality.
When trying to grow your savings we do not really want to get involved with a game that we aren’t ready to play psychologically. That said, have people made money by trading stocks and other assets? Yes, of course they have. But many of those same people bankrupted themselves while learning the game before they went on to have great success.
An interesting book on the subject is called “Reminiscences of a Stock Operator“ by Edwin Lefevre. It is generally understood that the subject of the book – Jesse Livermore – lost everything in the 1929 stock market crash. Fair warning!
However, people are always going to be drawn to trading as it can be a way to double, triple, or quadruple your money, but it really does take special skill. Investing as little as $100 can enable you to engage in trading individual stocks.
The basic goal of trading is buying something at a low cost and reselling it for a higher price to generate profit. If you were a computer or a robot, you could probably do this with a little smart programming. However, being a human means you are programmed by mother nature to do the exact opposite.
Humans naturally buy when they see others buying (when the price is high) and sell when they see others selling (when the price is tanking big time). This almost ensures that you will lose what’s in your trading account.
There are other paths to take that can lead to wealth and don’t quite expose you to mother nature’s money losing programming built inside us all…
What About Building Up Savings Like a Madman?
If you are looking for the easiest, low-stress way to generate secure wealth, a savings account might be the way to go. Sometimes, there will be deals that banks offer to generate capital by providing a 1% or more interest rate on the amount put in the savings account.
Here’s the deal. That 1% doesn’t seem like much (and to be honest it’s not especially after accounting for inflation), but in 10 years you KNOW that the money you put in will be there. By that time you will have enough to by a safer money maker like real estate or some other investment that you have taken a long time to study and consider.
Usually, utilizing this strategy for an extended period of time, over 10 years at least, will enable you to generate enough capital to really get into the game of asset building. This type of endeavor requires a slightly larger investment, and therefore has bigger rewards for those who can play. A great book to give you inspiration to keep to the path is “Richest Man In Babylon“ by George Clason, one of my all-time favorites.
Well, Maybe Starting Up a Side Business Can Make Me Wealthy!
Given that sole-proprietorship is the most common type of a business entity nationwide, there are limitless opportunities to join those who are within this industry.
Whatever you are interested in could, ultimately, be turned into a successful business. The best part of this strategy is that it will not require an enormous amount of capital (that’s money to us regular folks).
If you decide to offer a service in exchange for an hourly payment, or some other type of fee arrangement, you will not need more capital than to advertise that service.
In fact, many people can take the skill they already use in their daily job and sell it as a service to other businesses. There are many advantages to doing this, not the least of which is reducing learning time doing something new!
On the other hand, when you are selling products, the costs and complexities (and therefore, risks) will be much higher. When buying things to sell you will have to maintain an inventory so that you can deliver the product to the buyers.
Depending on what you sell, however, the expenses does not have to be tremendous in the beginning stages.
If you start to generate income, you will be able to reinvest it into the business and grow it further. This is how your business will get large enough to provide substantial revenue.
An awesome book for really understanding the entrepreneurial mindset is Robert Kiyosaki’s “Rich Dad, Poor Dad“
Concluding
Regardless of the way you decide to go about building your long-term strategic wealth plan, it should be thoughtfully planned out especially if you need to get rid of debt. An in-depth market analysis should accompany any planning stages, as the lack of it can cause detrimental effects. At the end, you should find what fits your character the best and start making money!
Images: Pixabay CC0
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