What if you learned how to make money work for you? What kind of a difference would it make? More money? Time? Freedom?
When you look at rich people, it sometimes feels like they’re making millions with no effort. Meanwhile, many people work long hours to break through the $100/day mark.
If you want to build wealth, you have two paths.
The hard way:
- Trade time for money
- You only have 24h
- No time for yourself
And because you gave all your time, you have none left to think of how to spend it the right way. So you’re likely to waste the little you earned.
And the smart way:
- Make money work for you
- There’s no limit to how many dollars can work for 24h
- 99% of your schedule is free time (if you choose to retire)
It’s like having a money printing machine. If you need more money, you just put more cash into the printer. What if you didn’t have to work again? You’d be free to live by your rules.
That’s what happens when you learn how to make money work for you.
- So You Need Money To Make Money?
- Putting To Work Your First $100
- Where To Go From $1000
- How To Turn $10K Into $100K Consistently
- $100K: When Money Really Gets To Work
- Investing: The No.1 Way To Put Your Money To Work
- The Bottom Line
So You Need Money To Make Money?
Here’s a common belief:” If money can make more money, then you need money to make money.”
Those who live by this rule are the same people who try to solve their problems with money:
- “I’ll invest once I win the lottery.”
- “I’ll be a millionaire if only I get this loan.”
- “The more I spend on my business, the more I’ll earn.”
You know what? These are valid arguments: more money speeds up the process. But that doesn’t guarantee profits. And it’s not the only way to succeed.
Because there are always ways to make money with no savings, whether that means trading your time or capitalizing on skills.
The goal is to build a system with the resources you have. A system that multiplies your money, let it be 100 bucks or $1 million.
You may wonder: How much will it cost to build a “money printer?”
- Most business courses with personal mentoring cost around $2,000
- As an entrepreneur, you could optimistically spend $2,000 on creating a product and $1000 on marketing it
So it would cost around $5K to build your own money system.
That doesn’t mean you have to do it. You can use other people’s systems, which we call investing. The problem is:
- You have no control over other people’s assets and
- You need $5K+ (or high risk) if you want to see decent returns
Our advice for you is:
First, create your own money tree
If you have no money to start, you’ll get far more experience and money if you create your own system: a passive income stream.
Imagine you have a scalable online business. You want $10K but have no time to earn it.
Let’s say you have this sales funnel: for every $1 you spend, the average customer pays you $4 after staying on your email list for four months.
How do you make money? You just spend $2.5K on ads, and within four months, you turned it into $10K. Passively.
That’s the magic of scalability.
Then, invest your money
As your money tree makes you profits, you will start accumulating cash. But if it’s just laying in your bank, that money is useless. Wasted potential.
The solution? Invest your money. Create a low-risk strategy so that you can invest most of your money. Research, diversify, and reinvest.
Investments typically grow slower than a business and can be unpredictable. But what matters here is consistency.
The ultimate goal is to put to work all the money you don’t use. You should only have available your emergency fund and living expenses.
The fastest way to put your money to work is:
Create your money tree → Invest in other people’s assets
This order matters. If you skip the first step, you’re not going to grow as fast. And if you skip the second one, you won’t be able to profit from your savings.
With that in mind, let’s see how you can put your first $100 to work.
Putting To Work Your First $100
This strategy works whether you’re broke or financially stable. If you have no debt and thousands saved in the bank, you can pay someone to help you, and you’ll profit faster.
Let’s say you start with nothing. How do you build a system with $100?
- $100 to set up an online store
- $100 to research what people like to buy
- $100 to learn how to find your customers
- $100 for a website + hosting + plugins
- $100 to advertise an offer they can’t refuse
Mind that it may not make money right away. You may earn nothing from researching market demand, but that’s a huge step to make your passive business profitable. If you spend $100 on a website, it may feel like progress, but until you land your first customers, it’s not.
It’s easy to get excited at the beginning, so beware not to spend your $100 in:
- Consultants/done-for-you services
- Premium web design
- LLC and legal registration
- Business cards
- Premium bank accounts/business lines of credit
All that matters is: If I spend $100 on X, does that get me a customer?
Because we live in the era of information, it’s super-cheap to learn or offer a service. So all your money should go into marketing, reaching those clients.
There’s no wrong answer to what passive business model is better. But for $100, here’s the most effective method we know:
- Research [Free]. Find a niche you like with enough demand. Find out what people talk about
- Learn [Free]. Learn the information or skills other people need
- Create product [Free-$100]. Fund your info product or service website
- Create trust [Free]. Visit online communities. Answer people’s questions while sharing your service. Make an offer they can’t refuse to get your first clients. Get them amazing results so they talk well about you.
- Repeat [Free-$100+]
As you create trust, you get more clients, so you increase your prices. And if you sell an info product, that’s passive money.
After you build it, you just need to create relationships with a funnel. And that’s where we’d spend the $100. Once you have a system, spend money on some email marketing software, tracking apps, ads, or however you get customers.
Once you have some products, a traffic source, and a funnel, you can find out how much people spend with you. Then, you either invest $100 on getting more traffic or improving conversions.
And before you know it, your $100 may become your first $1000 earned online.
Where To Go From $1000
With $100, we just did the bare minimum to make money. If you already got your first clients, you’ll find that your system has lots of room for optimization:
- More sources of traffic you haven’t tried
- More methods to increase conversions
- New ways to make your products more valuable
So the first $1000 you earn from your money tree should
It’s tempting to spend this on paid traffic/ads because that’s the magic of passive income. But you can’t make money work for you until you perfect your system. Before you think of scaling up, reinvest those $1000:
Create A Product Progression
Let’s say you’re targeting the right people but getting no sales. Does it mean your product isn’t good? It may also mean that your offer doesn’t fit them, or they don’t want to spend that much.
But hey, there’s a way to let people pay less without lowering your profit margins.
Maybe you don’t earn as much. But even if a guy buys a $5 ebook, he is more likely to buy a $500 course from you than someone who never bought anything.
That’s why pricing plans exist. You start with a down-sell of your standard product (fewer features), something under $50 with a refund guarantee. You also create a third offer, an upsell, to make the standard offer look more enticing.
You could create a dozen products from $50 to $1000. The point is, if you over deliver on the cheapest ones, people will feel confident buying the expensive packs.
Have A Content Plan
Most people who follow you may not want to buy. If you don’t keep them engaged, they won’t stay for long enough to see your amazing products.
The rule of thumb is to offer value for, at least, 3 times for every promotion. It doesn’t need to be life-changing. Just make it fun/useful so that people are looking forward to your next message.
Create A Membership Program
It’s easier to get repeated buyers than to gather new clients. And that’s why memberships are so profitable.
Most people are already paying $100 per month on Netflix, Amazon Prime, cable TV, or the gym. What if instead of selling a $100 product, you had members paying $50 every month? It can still be passive, by the way:
- Create a private group where only members can interact with each other
- Create months of content in advance and publish it gradually
- Hire someone to do weekly Q&As with the community
- Create a program/software that only members can use
Imagine making 5K per month passively. That’s like 100 members. It wouldn’t take you long to turn $1K into $10K.
And once you have your business in place, you’re ready to make it work for you, 24/7.
How To Turn $10K Into $100K Consistently
Here’s where you get the big returns for your work. With a system in place, you just need to get more people. You could go meet them one by one, or you can use paid traffic.
There’s still work to do, though. You may need to:
- Find what traffic sources work better for your business
- Test and optimize your ad campaigns
- Solve technical problems that come up along the way
- Upgrade the structure, so that your business can handle more people
- Invest in tools to automate tedious work
But remember that problems scale up as your business grows. That why we should avoid complexity:
- Before you think of adding more products, max out the existing ones
- If you hire, it’s worth “wasting time” on recruiting than getting the wrong person to mess with your business
- Protect your business cash flow with an emergency fund. It will allow you to keep producing products, paying workers, and issuing refunds
Let’s say you hire the right virtual assistant to oversee your $10K-per-month business. All you need to do is spend ~4h a week answering messages, assigning work, and collecting payments.
That’s $10K for 16 hours a month, or $625 per hour. And if you spend on paid traffic, you could scale that to $100K, or $6250 per hour.
Now, money is working for you.
The question is: How far can this go?
Does it still work whether you reinvest $10K or $10 million? And for how long?
That’s a different game.
$100K: When Money Really Gets To Work
Obviously, as you make more money, your earning opportunities increase exponentially. It’s not that much about how to make it but how you want to earn it. If you’d like to turn $100K into $1M, we’ve dedicated a guide here.
Even though $100K isn’t big money, freedom appears as a possibility. It’s not rare, for example, to invest in an asset that returns 3% per month, or $3K. And if you play with compound interest, every month, you’ll make more than in the last one.
It’s low-risk and requires no effort. The ideal scenario IF your living expenses is $3K per month. But even if the asset returned 10% per month, there’s still a long way to go to reach $1M.
Compare that with the business strategy we’ve shared, where you can earn 5x in a few months.
If that were true, everyone would have a business. So even if it’s high, scalability has its limits. After you maximize your traffic:
a. You can improve conversions
b. You increase the value of your products
c. You start a different business or broaden your niche
If you scale to $100K a month and find a block, to remove it, you’ll need to restructure your business.
Eventually, you might cross the $1M/month mark. But is the money working for you? Because more money requires a bigger structure, which needs someone to coordinate it: you.
If passive income is your goal, you should either:
a. Diversify: build other income streams or
b. Invest your money
If you got this far, you know that starting a business isn’t easy. Regardless of the profits, it’s time-consuming. That’s why it makes sense to invest in other people’s businesses.
The promise of investing is, for many, multiplied money for zero work. But if you’re not smart with money, it poses a dangerous threat: you have no control over your investment. You’re responsible for whom you trust with your money.
The solution? Create a low-risk strategy:
- Research companies with long-term potential
- Diversify your portfolio to ensure consistency
- Create a reliable strategy so that you don’t invest based on emotions
Investing isn’t a magical way to make free money. Even though it looks passive, there’s still a lot of work. The difference is, someone is doing it for you (the company), and you have to choose who you trust.
It may be tempting to seek help from others (financial advisors), but it’s still worth learning how investing works by yourself. Nobody can make those decisions for you.
Investing: The No.1 Way To Put Your Money To Work
It’s not enough to make money work for you. You want it to work well, generate as much ROI as possible. It also has to be reliable, so you don’t have to manage it or worry too much.
But just as you can start any business, there are countless types of investments. If you don’t know where to start, here’s what you could do:
Test before you invest
It’s unlikely that you know what the best vehicle is. Have you tried every investment type out there? There’s only one way to find out which one is the best: to try as many as you can.
This doesn’t need to be expensive. You can test by putting $100 on commodities, ETFs, mutual funds, stocks, crypto, even bonds. Which one is the best? That depends on your investing style.
If you ask a trader, they will argue that day trading/range trading is the best investment. Realtors will tell you that properties are the safest investment. Crypto-traders will talk about all the exponential returns you’re missing.
The best investment type is whichever you choose. But if you choose a dozen types without understanding any of them, you just got a dozen ways to lose your money.
“Invest in what you know” – Warren Buffet
Let the money work for you
You know you’re a good investment when you don’t worry about money. You trust that your strategy will generate ROI in the long-term. You don’t need to react to the market.
Even if you invest, you may still work for money and not the other way around. For example:
- Every morning, you wake up worried about your assets. The first thing you do is check for news and market prices
- Every few days, you second-guess yourself, reallocate your money, or sell too early
- You’re trying to invest in every new asset you discover
Investing is passive for a reason.
- Because it’s mentally draining to trade every day. Especially when affected by emotions
- Because the easiest way to profit is to wait
- Because it costs more to trade at a higher frequency
If you set your strategy the right way, you shouldn’t worry about what happens to your savings. Even though you may miss on opportunities, investment profits come from risk management.
Diversify investments for lasting wealth
No matter the type you choose, everything is risky. If you can make money from price changes, you can also lose it. And the best way to protect against it is to diversify your assets.
If you diversify enough, even high-risk stocks can be a smart choice. Here’s how we’d prioritize:
- Retirement plans (due to tax privileges). Max out your yearly 401K/Roth IRA/HSA
- Invest in index funds long term
- Diversify stocks and cryptocurrencies (non-correlated)
- Invest in projects/companies with potential you like
The first step to live off your interest is to contribute to retirement plans. Next, you minimize risk with index funds (or bonds if you prefer). And to diversify further, you can invest in companies/projects based on your research.
It’s always nice to have some “fun money” to experiment. I’m sure you’ve thought about it at least once: “Company X is worth 1000s today and was worth 10s a few years ago. Imagine if I invested $100 in them back then.”
Well, this is your chance to do so. You can spend this money on crazy, early-stage projects just to see what happens. And the rule is to never spend more than 5-10% of your savings, so you can’t lose much.
Leverage Compound Interest
If you’re not into trading, there are still better things to do than leaving your cash in the bank. If you don’t use the money, you can lend it to someone who needs it and get interest from it. As long as you choose a responsible borrower, it’s one of the safest investments you can make.
For example, you can buy US Treasury Bonds. You lend money to your government, which guarantees a return plus interest after a few years. And if your sum is great enough, that interest could be enough to pay for your living expenses.
The Bottom Line
There are limitless ways of making money work for you. But first, you need to build those systems.
If you like risk, trading is the easiest way to achieve this. But when it comes to consistent results, investments take time to generate ROI. Consider creating your own assets/businesses to grow your net worth faster.
If you don’t know where to start, the best you can do is try a bit of everything. And once you have some experience, what matters is choosing just one vehicle. And after you master it, then you diversify.
Just as there are opportunities, there are many ways to lose your money. So before you put your money, think twice about your financial strategy: “How can I make money work for me?”