Are you working for money or is your money working for you? (2024)

Some people think being rich is a function of making a lot of money. But that’s not true.

At least, not in the sense of how most people think of making money — by earning a salary.

And here’s why — a big salary means a couple things:

1) You work for money. 2) You pay more in taxes.

There’s nothing wrong with working for money. Most people do. But, if your goal is to accumulate wealth, trading your time for money is the least efficient way to do it. Especially when you factor in tax rates from earned income (which are generally higher than income earned from investments).

Instead, most people who achieve wealth, also put their money to work for them — whether they’re working a job or not.

Putting your money to work for you means deploying it to earn a return.

That could mean investing in the popular sense of the word — like in the stock market, in crypto, or a retirement plan.

Or it could mean investing in a different sense — like starting or buying a business, purchasing real estate or other assets.

When you put your money to work for you, your wealth is no longer entirely dependent on how hard or how long you work or how much money you’re…