Wednesday, October 3, 2012

money works

money makes the world go round: that's half true. money and people makes the world go round. sad to say, people are letting money make the world go round when it should be the other way around. people are working for money instead of letting money work for the people.

let's take a look at the three kinds of people-money relationship, which i have in mind.

employment: when one is employed, one is working for money. he works to receive money for him to use for daily activity. once depleted, the cycle is repeated. it's advantage: it's basic, no complications and no stress (depending on whose looking at it). drawback: unstable and routinary. once you're laid off, the pay stops and you need to look for another job.

business: when one owns a business, one is working with his money. to clarify, he is helping his money grow by making the business stay afloat. then the owner would hire managers to take charge of the operations so he can sit back. then, from time to time he takes part on the operations. that's better than being an employee, in so many ways. one disadvantage though. it consumes time. not like if you are going be an investor

investor:  when one invests, he uses his money to generate more money. sample would be time deposit, real estate, stocks, bonds, etc. simplest form would be saving up in a bank with compounding interest. that may return the smallest but adding it up to, let's say, 15 years: that's big. 1,500 monthly with 0.5%interest rate for 15 years would have a future value of 281,939.13, regardless of the currency(i think).

final note, make your money work for you. do not just work for money.

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