Going along with the sixth principle, moving your money and creating velocity, one thing you should aim for when it comes to your private wealth is making your money multiply. The basic idea of wealth management is to have your money grow and multiply to give you financial freedom.
Changing Your Mindset on Wealth
Having your money multiply means that each dollar does more than one job. Your wealth is not focused on one particular area but rather involved in multiple assets. Whether it is through passive income or creating something that can be constant, this can be a great way for you to grow your wealth and manage your finances to multiply for you.
Ways to Multiply Your Finances
One way for your money to work for you and create an income is through stock investments and bonds. Researching a market that you are familiar with or see great potential growth will allow you to invest your finances. Your money will work for you and begin to multiply as you can go about your regular job. You will have to keep up with the market and analyze the ups and downs to determine when you need to get out and when you can invest more of your time and resources.
Along the same lines as the stock market is real estate investments. While this is a longer term solution to multiplying your finances, this can be an excellent way to put money back into your pocket. Owning multiple properties and renting them out can create a steady income and allow your investments to pay for themselves and even create a profit.
Creating Passive Income
Creating a passive income for yourself can be a great way to start your infinite banking. Passive income involves creating a service or product that requires initial work and resources and then generates income without you having to put in additional work. Examples of this include smartphone apps, online courses and books.
Your wealth management advisor can help you on the right track to multiply your money and create financial prosperity.