Step 1 — Find a machine (aka an investment)
This step requires research and careful consideration, the same effort you would put into buying a car.
Factors you need to consider when making a selection its capability (aka rate of return) and its risk of breaking (aka market risk aka changes in the market).
The higher the rate of return, the faster you can grow your money…obviously. But your rate of return comes with a risk. It is highly dependent on the changes in the market. That means you can make a lot of money today and lose them all tomorrow.
Some compare that concept to gambling because you cannot predict market fluctuations. And if you don’t see yourself as a “gambler” then you probably won’t even consider getting into the market. But here’s another way of looking at it…
View investments like your typical machine. Let’s use a car for example. Cars require maintenance. Maintenance costs you money. Sometimes, the car breaks and needs to be repaired, which, may cost you even more money.
Maintenance and repairs are just a natural part of it. I don’t know about you but I’ve never heard of a machine that does not require repair or maintenance.
The same idea applies to your investments.
Step 2 — Get your employees to work (aka your money)
Once you’ve done your research to find the machine that suits your needs, get your “employees” (aka your money) to work ASAP. The more “employees” you have, the more money they can earn for you…(again that’s a given).
But what most of us don’t realize is that these employees don’t get tired. If possible, you’re probably going to get them to work forever. Why? Their effort compounds. The longer they work, the more money they can make.
This is why you’re encouraged to invest your money today (not tomorrow) to allow you to maximize the time your money can work for you.