Making Money

In the minds of many people, the global stock markets are the hottest way to make money. If you invest in stocks or have them in your 401-k, IRA or other retirement accounts, if you in fact have such accounts, consider the following:

1) Despite a financial statement showing your "profits," you have not made a penny until you sell those stocks and take possession of the funds. Other than that, it is all an illusion.

2) Whether you make or lose money, your financial advisor makes commissions every time you buy or sell stocks, so he or she may not be objective in advising you.

3) The same Wall Street that brought the global financial crash of 2008 - 2009 still operates largely unregulated. Much of what they sell is image, with little substance behind it, and as we've seen in recent years, they rig markets, manage drug cartel money and do other unsavory things. Please be careful.

The stock markets aside, there are two solid old fashioned ways to get ahead financially:

1) The first is earned income. This is money you make at work and put in a government guaranteed savings account. It may not be glamorous but it pays the bills and will be there when you need it.

2) The second is money saved. It is having some fun with a portion of your income but not wasting it on expensive frivolous items or being overrun by credit card debt. The old saying, "A penny earned is a penny saved," is true.

If you would like to take risk for a much higher rate of return on your money:

1) Become an entrepreneur, making money with your own business or in some other way using your skill set.

2) If you can afford to do so, invest in real estate. By that I mean income property in an area near you, preferably in a major metropolitan area in which houses, condos or small apartment buildings are in demand. This will bring you income, tax benefits and potential appreciation in value. However, please do not invest in real estate unless you take the time to understand it.

There is no shortcut to making money. Hot tips are meaningless, while doing your homework can have tremendous value both from potentially making money, and from not losing what you have. I wish you well dear reader.

Dick