How to make money work for you. 10 profitable passive income sources

We all strive for financial freedom in life.  Before money was invented, man only worked for basic needs. If he had his garden tended and his shelter in place, then he would spend the entire day doing things he enjoyed.

With money, we are always on our toes searching for ways we can have more of it. Financial freedom means to stop working for money. It means having money work for you. When money is working for you, you can choose to do what you give more priority to without worries of lacking.

You can choose to do that job you enjoy, spend time with family, sleep the whole day, take days off whenever you wish, or travel around the world. Making money work for you means creating passive sources of income that require minimum input from you. 

Financial freedom comes when money starts to work for you

However, to make money work for you, you have to first have money or something of great monetary value. Money makes money. To paraphrase it, capital makes money. Capital can be money, a skill, an asset, etc. Anything that can be monetized.  Before we explore ways you can have money work for you, let me point out a few ways you can get the money that you can use to make more money.

  • Save a portion of your income.
  • Master a monetizable skill.
  • Sell an asset.
  • Start and grow a business to profitability.
  • Acquire a secured loan.

So you have the money which you want to invest so you can make more money, here are ways you can do that.

Ways to make money work for you.

1. Invest in yourself.

Do you know that amongst all the assets or wealth which you have, you are the most valuable of them all? Do you know that your financial status is a reflection of the value of your body and mind? Yes, it is true. If you have a mind of a millionaire, it’s not hard to make millions. If you have a mind of an average person, you don’t make it beyond the basics of life.

This is the sole reason why lottery winners lose their money as fast as they win it. They don’t have the mind to fathom and manage millions of dollars. Like the saying, a fool and his money will soon be parted. If you want to make money work for you, raise the first capital that you need which is you. How do you do that?

First take care of your body to be healthy, fit, and strong to take on money-making tasks. Second and majorly, your mind. Develop your mind and equip it with those skills you believe can help you make money. These may include, money management skills, marketing, sales, branding, leadership, business management, etc.

You can also master technical skills you are inclined to like, coding, writing, content creation, etc. These skills help you forge an income source that you like and get a deep conviction about making money.

2. Invent something.

Every day new challenges arise in the world. Identifying a challenge and providing a solution can be something that will send you and your fore-coming relatives to retirement. It all takes identifying that problem or challenge.

It doesn’t have to be very technical or big a problem, even the smallest of problems have made many people millionaires by just solving them.

Invent something to make money work for you

Murray and Bernard Spain realized that you didn’t have a way to show a smile in your inbox so they invented the smiley emojis, bought exclusive rights to them and today the invention is valued at $50M.

 Provide a solution to a problem. Make sure the solution is patentable, scalable, and monetizable. Money will flow into your account even when you choose to spend a full month in bed.

3. Build digital products.

Today many people most especially the youths are becoming millionaires from making and selling digital products. The idea of making money online is still unbelievable to many. The earlier you believe it the easier you will take on the unlimited opportunities. Ali Abdaal, the 26-year-old medical doctor has built an empire from digital products. Many other entrepreneurs have made a fortune from selling digital products like ebooks, software, music, online courses, videos, websites, etc.

If you learn a skill that can make you make one of those products and then put in the work to provide quality with thorough marketing money will make money for you.

4.  Start a venture capital fund.

If you have watched Tv Series like the Dragon’s Den or Shark tank then you clearly understand the concept of the venture capital business. You have your money, perhaps savings from your job or business.

You want that money to bring you more money. Find a business that needs funding, study how it operates, its feasibility and viability, its sustainability then invest in it if everything clicks. Your investment will entitle you to a percentage share of the business.

Venture capital investments are very great passive income sources if you choose not to get directly engaged in business operations. All you do is monitor occasionally.

Mark Zuckerberg invited a few friends to invest in his Facebook start-up in 2004. Those that did are valued in billions today. You do not have to have millions of dollars to be a venture capital investor. You can invest in small start-ups that sometimes even require as little as $1000. They can grow into big business to make you a lot of money.

5. Invest in real estate.

One of the low-risk high-return businesses that you can embark on if you have money, is real estate. It is one that greatly minimizes loss of your capital yet maximizes returns. When one talks about real estate, the first thing you will think about is your home. It’s a property you either rent or own. Everyone needs shelter as a basic need.

Invest in real estate to make money work for you

It’s dangerous to be homeless. Every day many people become independent, they move into a new house and start a family. Even companies set up new structures when they expand. Real estate is very lucrative. You can choose to invest in real estate in the following ways.

Rental properties: Buy properties like homes, apartments, and land to rent them out. You then become a landlord collecting weekly or monthly rent payments.

Flipping houses: You can buy old houses, give them a facelift and sell them at a higher price for a profit.

REITs: Real Estate Investment Trust. You can choose to give your money to a trusted company that uses it to invest it in real estate and claim a share of the profit as agreed.

Real estate investment group: You can invite colleagues, family, or friends to raise capital to invest in real estate.

6. Invest in stocks

Many public companies are listed on the various stock markets like the New York stock exchange, NASDAQ, Shanghai stock market, etc.  You can buy small shares of ownership from these companies. When the shares appreciate in value, you can then sell them for a profit. On the markets, there are always willing buyers and sellers.

However, for the two to meet, there is a broker whose role is to link a willing buyer to the willing seller. All you have to do is open up an account with a legitimate broker and then trade. You can also invest in mutual trust stock traders to help invest in stocks.

If you choose to do it on your own, take the necessary training to learn the dynamics of stock trading so that you can buy shares from the right companies. Otherwise, you may end up blowing your entire account in one or two trades. It is also important to only invest money you can afford to lose.

7. Crypto currency

Cryptocurrency is a digital currency that is secured with cryptography or the science of securing information. It allows peer-to-peer transactions and is not controlled by any central bank. It is money that anyone anywhere in the world can use to conduct a transaction online without worries of exchange rates.

You do not need to convert pounds to dollars to buy from an online seller that only accepts dollars. More and more suppliers, companies, and people are embracing cryptocurrency payments. Digital currency is taking the world economy by storm.

In 2021, Bitcoin, one of the cryptocurrencies appreciated in value by 130%. From February 2011 to April 2011, one bitcoin was equivalent to $1. As of December 2021, one Bitcoin is equivalent to $46,132.50 yet still rising.  One coin may be expensive but do not worry, you can start off with tokens that cost much less.

Invest in crypto currency to make money work for you

If you want your money to make more money for you, investment in cryptocurrencies is a wise decision. Apart from bitcoin, there are other currencies like Ethereum, Litecoin, Cardano, etc.

It is important to do thorough research to know when and which cryptocurrency to invest in. the cryptocurrency market is very volatile and with some currencies at risk of collapsing to zero value. It is also important to only invest what you can afford to lose.

8. Delegate to the experts.

To venture into a new business while still running another can sometimes be hectic or even impossible. If you have a 9-5 job or a business that demands a great deal of your time, you might fail to invest your savings. The good news is that someone can do it for you.

Check with your local governing and licensing bodies to find authentic companies that invest on behalf of investors.

These companies can wisely and consciously invest your money in lucrative ventures in exchange for a percentage share of your profits. You can also delegate company roles to private companies.

For example, you can concentrate on the production of a product then delegate marketing, distribution, and accounting to private companies. That way you will have fewer tasks on your hand. Your money will be working for you with you investing less of your time and energy.

9. Start a business with systems.

You can start a business/company with working systems well institutionalized into it. An effective system with working departments in finance, production, marketing, and security can have a company operating even when you are away from it.

However, to build such a resilient and reliable system, you have to invest a lot of your time, energy, and money to build, nurture and maintain it. When the system finally matures you can then take time off and let your money work for you.

10. Invest in bonds and high-interest saving accounts.

In case the above 9 ways do not help, then I recommend investing in bonds or high-interest saving accounts. I for one have this as the last option on my investment portfolio. The reason being they have very low returns and those with high returns are high risk.

However, if you want to keep your money safe for a good period of time, you can save it with a high-interest account like a fixed deposit account in a bank.

You will earn some interest for that period. You can also invest in secured bonds where a company borrows money from you with collateral security in place.

Set a system for your business

However, secured bonds have a low return on investment. You can also invest in unsecured loans. These have a high return on investment but also pause a high risk of loss to the investor since a company issuing them does not provide collateral security.

Conclusion: It is very important to invest wisely and have money work for you. Yes, we all want to be rich with smiling bank accounts. However, having both money and freedom is something much more important. The two can only be attained by having money work for you.

When money is working for you, you decide for it. When you are working for it, it controls you. No day offs, no life, no time for family, etc. We all work for it from the start but once we figure out the right investments, it starts working for us. I know you can make it work for you and I believe you can because you are investing in your mind to have the knowledge you need. I wish you the best in life. Share with me your ideal passive income investment.

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