Here are my Five Principles for making money on money.
The First principle.
Save some money. About 10% to 20% of your income is good. The actual amount will depend on your budget and surplus funds. Something is better than nothin.
The Second principle.
Earn interest on that money. Preferably 5% to 6%. Slightly more risk than a bank. Get advice on some options from a financial planner or search for them yourself. Will have some posts on that here!
The Third Principle.
Compound your interest! Albert Einstein said “Compound interest is the 8th wonder of the world. He who understands it, earns it; he who doesn't, pays it.”. So reinvest your interest on maturity!
The Fourth Principle.
Buy Assets that Make Money! For example: Buy a rental house not a car (unless it's a collectable); buy a profitable business; open a bank deposit; take on a bit more risk and make investments in undervalued assets that have a proven performance track record. There are lots of assets that make money!
The Fifth Principle.
Do not gamble with your money!
Well I hope that helps you protect and grow your money!
Check out some of my other Money posts on Principles and more importantly how to get more Money!
Cheers
Superman!
Feel Free to Follow Me on Publish0x, Twitter and Uptrennd
