Posted over 4 years ago

Three Stages to Making Money

There are Three Stages to Making Money:

1. You first work for money

This is usually when you start. You get a job in a company, or you are a professional like a Doctor, Attorney, or Realtor, etc.

Working for money requires your physical presence, your knowledge, and your time. To make more money you have to work more hours, or faster or harder.

The most important thing about this stage is to spend less than you make, save the difference, and keep compounding the returns.

Do not borrow too much and do not add any unnecessary expenses. It requires the highest level of discipline.

Usually, people finish school or college and they work for money from their early twenties till late thirties or early forties.

It would require 15 plus years to amass enough money to move to the next stage if not they will continue in that stage forever.

To get out of this stage work on bonuses and incentives that beat expectations.

2. Then you work the money

At some point in your life, usually in your early forties, if you kept the savings and controlled your expenses, and compounded your returns, you should have made enough money to start focusing on managing your money as a full-time job.

Managing the money or working the money as I call it is when you use your money to make more money. To work the money you could buy and sell products including real estate, or stocks and options, or even by companies.

This stage requires, time, money, knowledge, risk management, and many other talents and coordination as well as the cooperation of others to succeed.

Do not borrow too much and do not put all your money into one project to reduce your risk.

Usually, people go through this stage from their early forties till they turn fifty

3. Finally, your money works for you

After working for money for 15 plus years and then working the money for 10 or so years you should be able to have enough money and experience to have acquired the right assets or businesses or stocks and options for the money to work for you.

This happens when your assets bring you income.

business, real estate, or stock and option holdings are significant in size to produce enough income.

This stage requires the least of your physical presence.

You must have a business mind to succeed in making money whether you are:

1. An executive in a corporation (in charge of people, products, and profits)
2. A business owner or a professional running your own company
3. A real estate investor (whether buying and sell or owing discount mortgages or having commercial real estates like an apartment building or a strip mall)
4. A stock and options market trader

The business principles are the same: