The 7 Smart Ways To Make Money Work For You | Compound Interest Formula

what is the difference between a rich person and a poor person this is a question that has been asked for centuries and there are many different answers it is important to note that the answer to this question is not always the same from person to person some people believe that a rich person is someone who has more money than a poor person others believe that it's someone who has more than they need and the poor are those who have less than they need you don't have to be a genius to know the following money skills

in this video I'm going to show you the seven smart ways to make money work for you if you really want to make money work for you you have to start by investing remember this life is full of uncertainty we've just got to learn to live with it right and we all want to get financial Independence throughout our lives so I encourage you to consider investing as one of the main methods to stop working for money and make money work for you now if you want to discover how to do this in the safest way

possible I recommend you follow each of the concepts and strategies that you will see in this video you should know that Investments can be a tricky thing the first thing is to be clear that the most recommended way is to start with the amount of money that in case of losing it does not drastically change your life I encourage you to stay until the end of this video so that you learn the seven smart ways to achieve economic independence let's go with the first seven smart ways to make money work for you and that is

peer-to-peer lending or loans between individuals the loan between individuals peer-to-peer lending is also known as social lending or crowd lending also refers to loans between individuals without the intervention of a traditional financial institution such as a bank in many cases it is micro credits or small loans so what happens that the amounts can range from three hundred dollars to one hundred thousand dollars now the objective of this type of financial transaction is to make it possible for people or small companies that do not have the possibility to access bank loans to do so with this

method so you must keep in mind that for this type of transaction interest rates are a little higher because obviously they are more risky for borrowers okay now how does this work well the function is basic look at it this way individuals or companies that have the capacity to finance or have the intervention of external investors lend their services online or offline in order to finance individuals who need loans to make it clearer those who do this are those who are called private lenders so private individuals or small companies go to these private lenders to

obtain loans or loans that Banks or traditional Financial entities do not Grant either for debt reasons or because they do not have periodic income they do not have a fixed income the only existing requirement in loans between individuals is the balance with a mortgage-free housing in few words the guarantee has to be a property of yours free of debt of course obviously for all this there is also a risk control now there are models in which the lender that is the person who borrows the loan must present a guarantee to minimize that risk on the

part of the lender this is called an English secure person-to-person Lending most platforms however do not require specific guarantees to borrowers but classify them according to their reliability if they are reliable on the other hand in direct lending the lender chooses the lender to who he wants to lend his money so with this type of strategy you can start that project you have in mind get that Capital to invest in a project that generates profits have you ever tried peer-to-peer Lending if so comment below and share your experience now pay attention to the next seven

smart ways to make money work for you which is start an online business you may have noticed that the electronic Commerce or e-commerce is growing as we would never have imagined just like online businesses mentors in simple words a lot of businesses are moving online more and more and in fact Global e-commerce sales are expected to reach 6 trillion dollars on the upcoming years the sales of digital products has grown rapidly in recent years According to some e-commerce news data and my question is why don't you take this opportunity buying on the internet today is

so easy that you can do it from your own bed from your own kitchen from wherever you are so it is not difficult to understand why so many people are using online services to make their daily purchases selling your products on the Internet is an excellent way to reach more people but obviously you need to create an online store or some website a YouTube channel or another social network with a large following members would be ideal for selling your products to a community and close sales an online store can open new borders for your business

you can sell to thousands of people in your country and around the world and this sincerely will make your money work for you I recommend that you start with small steps perhaps just adding some interesting products that you have in your inventory and then you can concentrate on expanding your product line and making your business grow through digital marketing techniques such as email marketing social networks in few words the advantage in this type of online business is that once you can reach many people through your social networks your communication channels you can generate income without

being behind a computer or an office all day on the other hand remember that this investment requires a lot of effort at first in strategy because your final goal is to have customers and generate income by the way if you're enjoying the tips so far and want more videos like this subscribe to the channel and hit the like button so I know the next seven smart ways to make money work for you is invest in ETFs I'll start by explaining what ETFs are ETFs are indexed funds that replicate indices such as the most popular reference

index the SNP 500 with the 500 most important companies in the world the Ibex 35 or Dow Jones namely when you invest in ETFs you are not buying individual shares but the value of the reference index the value of for example the SNP 500 Index its total value now pay attention when buying an ETF of the S P 500 you are not buying a single share but you are investing in the 500 largest companies in the United States this is a great advantage since an individual shares the values of the shares in the market go

up and down quickly which makes them volatile and high risk but in the case of ETFs you are investing in the group of shares of all those companies which makes it less volatile and an investment of less risk so ETFs began to be used as investment instruments for example in 1976 and were created to imitate the total behavior of the SNP 500 index however the convenience and efficiency that these ETFs offer has allowed them to grow at high speed in recent years so what happens the proportions Compass of ETFs reached the end of October 2019

the 4 trillion in assets however for many analysts this is just the beginning of the era of these listed funds now you may be wondering with all this technicality how the hell do you invest in ETFs well investing in ETFs is as simple as investing in an action and with platforms like etoro.com is easier to get started and you can do this without commissions etoro.com platform is intuitive and easy to use even for beginners I personally use etoro.com there's a link to sign up in the description below after opening an investment account in etoro.com you

can either go to a search engine to buy an ETF or buy shares directly it should take just a few minutes at most and you could either buy the Dow Jones or the NASDAQ 100 depending on what you would like to invest in I recommend that you do your own research before deciding to invest in ETFs I am not a finance expert now with that out of the way let's move into the next seven smart ways to make money work for you and that is cryptocurrency mining cryptocurrency mining is a proof of work process which

consists of validating and registering transactions in the blockchain in such a way that new cryptocurrencies are produced or issued some Define it as creating coins in exchange for winning them in theory this is a decentralized process free of third parties and test of manipulations currently mining is a highly professionalized industry and requires a lot of investment that's why and in my opinion it is the least recommended option when generating money with cryptocurrencies since it is increasingly difficult to find cryptos that can be mined in a profitable way without making a great investment in equipment at

the same time if you have the resources to invest in mining you are going to create money out of nowhere so basically it is a very smart way to generate money now if you want a more detailed video about this topic comments below the word Mining and I will create a video where I talk about strategies to buy tools to mine cryptocurrencies the next seven smart ways to make money work for you is buying shares to earn dividends one of the main benefits of investing in the stock market is the possibility of generating greater performance

and it is shown that over time the market tends to rise in value although the prices of individual shares rise and fall daily so what happens the economies that are down it is quite common to see the shares fall at least 10 percent and yet these Market lows do not tend to harm investors who have long-term investment strategies now pay attention to these two extremely important strategies if you want your money to start working for you one you have to invest when the markets go down this is something that ninety percent of people do not

do that is why statistics say that only 10 percent of investors in the financial markets win therefore buying the lows and selling the highs is easy but not everyone dares to invest when the values fall since it is tend to think that everything will continue to fall the same happens on the contrary since few dare to sell in the highs because it is tend to think that the values will continue to stay high most investors buy the highs in Euphoria and sell with the fear of the lows that is why the best thing to do

is to apply the second strategy which is to invest in Innovative companies it is useless to invest in traditional businesses if the world is moving in another Direction Banks Airlines insurances these types of businesses are very exposed to covet or some other type of external element and have little projection the world is moving in another Direction in technology that is why it is better to invest in companies with future projection such as Cloud cyber security metaverse renewable energies e-commerce Etc moving on to the next seven smart ways to make money work for you is investing

in real estate today many people seek to invest their money in real estate because it is almost always a safe investment and it does not require that you dedicate so much time if you have the investment one of the reasons why you acquire a property is to rent it or wait for its value to increase and then be able to sell it or remodel a building or build on a piece of land so that you can sell it or rent it later to ensure a successful retirement or at least generate enough money to have a

better life when you retired from work the government's pensions are not enough to cover all our needs so the best option is to invest in a property to get additional income thanks to the value of the monthly rent the monthly salary they give you this is more convenient than saving since the interest rate in a savings account cannot be very high and it depends on the national economic situation but it is also less risky than investing in the stock market or metal such as gold or silver since unlike these the value of a building does

not change drastically but it always increases over time so look at it this way local currencies can be worth less in times of Crisis however properties are valued in dollars you can take advantage of auction prices up to 50 percent of their value and this happens when the property is guaranteed by a bank loan which as it is not covered in its entirety the property is embargoed and the bank to recover its investment auction the property you can take advantage of pre-sale prices on new properties to obtain immediate profits when selling the finished Construction honestly

you do not need to be in real estate expert however I recommend you go to a professional advisor this way you can avoid problems for not knowing certain legal and notarial aspects and among other factors that if you do not consider them can endanger your investment in addition an advisor can help you get the best out of your property training you to have a free cash flow as well as reduce taxes from other sources of income the next seven smart ways to make money work for you is do trading in Bitcoin and cryptocurrencies cryptocurrency trading

consists of operating on the movements that occur in the different pairs of cryptocurrencies these fluctuations in price can occur in pairs of a cryptocurrency against the dollar such as the BTC the usdt the ethereum ETC or between a cryptocurrency against another cryptocurrency the main differences from investment are the following first in trading operations are kept open for spaces of lower times so by trading we can get benefits we can get a utility whether the price Rises operating in the long term or as if the price drops operating in the short term obviously becoming a Trader

and understanding all this at first is not easy but just focus on what other Traders are doing and learn from them Traders Focus mainly on reading graphs through technical analysis but the most common is to use other methods of analysis such as the fundamental the study of news on-chain metrics and other indicators to evaluate the behavior of the price of an asset to make money trading in cryptocurrencies it is important to develop a strategy with positive expectations in the long term manage the risk and control emotions so that you can make consistent profits if you

want to trade Bitcoin or other cryptocurrencies the easiest way is through an exchange like binance however this can change if you want to trade on a traditional Financial instrument so far I've shared the seven smart ways to make money work for you but I haven't talked about other business models that you can start make sure to watch this video next where I share more details on business ideas that never fail and can make you earn good money I also invite you to share this video with friends or relatives who are looking for ways on how

to earn an extra income this video could help them like And subscribe to the channel thanks for watching this video and I see you in my next one [Music] thank you