Making your money work for you

Making your money work for you
Conventional wisdom says you have to work hard for money. But it's time for people to learn that it isn't enough to accumulate money through working - you also have to make sure that the money you've accumulated works for you.

How does this work? Simply by putting your money into an asset that generates more money. This is a simple lesson that escapes most people. Sometimes, we think we are buying assets when they in fact liabilities.

Take the case of jewelry. Some people think that buying jewelry is a good investment because jewels and gold increase in value over time. This is true, but in most instances there is a "liquidation value," which is the price that other people will pay to buy your jewelry. A piece of jewelry might be apprised to be P100,000 in value but that does not mean that another person will purchase it from you at that amount. The actual value is almost always less than the appraised value.

So, while it is a sound philosophy to work for money, what we do with the money we accumulate is just as, if not more, important in the long term.