Making money work for you - 5 steps to more wealth

Reading time 6 minutes
Making money work for you - 5 steps to more wealth

Many rich people are leading the way: They make their money work for them. Those who have a lot soon have even more. Money seems to multiply magically. The good news is that if you want to put your money to work, you don't need a huge fortune to do so. Even smaller amounts are suitable for multiplying.

Why you should make your money work for you

Imagine not lifting a finger and still having a handsome income. Isn't that wonderful? Making your money work for you may sound utopian, but for many people it is part of everyday life without them really realizing it. Every interest earned is a passive income.

It's not that difficult to increase your money. The right investment determines success. However, a high investment can generate significantly more revenue. If you start small, you will have to settle for lower returns or interest income at the beginning. happy.

Basics: How does the principle of putting money to work work?

You're probably asking yourself: How can I make money work for me? There are various ways to do this. In most cases, you make money available and receive interest or a return as a "reward". Depending on where you want to put your money to work, you will receive the increase in value from the bank, the state or a company.

The easiest way to multiply money is to take advantage of the Compound interest effect. If you invest your money in a savings account, a savings bond or an overnight money account, you will earn interest. If you leave the interest in the account, it will in turn generate interest because it increases the assets that are earning interest. How lucrative the investment is depends on the interest rate and the investment period.

Making money work for you

Making money work for you: First steps for beginners

Putting your own money to work is new territory for many people at first. Step by step, it is possible to generate attractive gains.

1. define goals

Decide when you need how much money for what. Maybe you want to retire early, buy a house or treat yourself to a nice vacation. There are small and large goals with long and short terms. The chances of your money increasing are higher if you take your time to pay it out. This is also due to the aforementioned compound interest.

2. check financial resources

Get an overview of your budget. What investments can you afford to make without going into debt or jeopardizing your standard of living? Also think about your emergency reserve. Ideally, you should set aside two to three months' salary so that you can access it at any time.

3. reconsider risk appetite

What type of investor are you? If you want to put your money to work, there are risky and safe forms of investment. Your money is safest in a fixed-term deposit account. In the event of a bank failure, up to 100,000 euros are protected by the deposit protection system. However, the inflation rate is currently higher than the interest rate, so your money will lose purchasing power.

If you choose a form of investment that is subject to price fluctuations, you are taking a certain risk. In the worst case, the money is lost. On the other hand, shares and the like offer the opportunity to earn handsome returns and actually build up an attractive fortune within a relatively short period of time.

4. find a suitable investment

Weigh up your options carefully and decide on a form of investment that suits your personality, your budget and your life plan. It is also possible to combine different investments. Park part of your money in a fixed-term deposit account and invest another part in shares or ETFs, for example.

5. expand portfolio

As already mentioned, it is possible to combine different forms of investment. Opt for an investment mix with predictability and stability. Take a gradual approach and gradually add interesting financial products to your portfolio. You might use the returns and interest income from the forms of investment you have used so far.

Making money work tips: effective strategies for higher returns

Do you want to make your money work and are looking for tips on how to do this quickly and effectively? Try the following:


You rely on the principle of compound interest and let the income work for you. By reinvesting the dividends, returns and interest, you increase the pool of money, which in turn generates substantial profits. Funds and ETFsthat automatically reinvest the dividends are called "accumulating investments".

Skim off profit

You invest a fixed amount that you have left over anyway. This is the money that you put to work for you. You regularly withdraw the profits, dividends, returns and interest income and thus secure an attractive side income.

Benefit from the average cost effect

Continuous investing is also promising. In this case, you invest the same amount of money every month, for example in shares or ETFs. If prices are low, you buy the shares cheaply or you receive more shares for the same amount of money. Investing evenly over the long term balances out price fluctuations better. In technical jargon, this is called "Cost-average effect".

Investment opportunities: How and where you can invest your money

If you want to put your money to work, you have various options. You can obtain bonds from companies or the state. You grant a loan for which you receive a coupon. This is a special type of interest. If the company in question goes bankrupt, you lose your money.

Shares are also risky due to price fluctuations. Cryptocurrencies. You acquire shares in a company and benefit from its success, but at the same time bear the risk in the event of a loss. As a shareholder, you own a share in the company.

If you want to put your money to work with the help of a fund or ETF, you are participating in an investment package with several companies. The risk of total default is lower here because it is very unlikely that all the companies in the bundle will become insolvent.

Buying real estate

Indirectly, you can also put your money to work by purchasing real estate and renting it out. You can also invest in real estate funds. An increase in value is possible and you speculate on a substantial profit. This in turn involves risks because you are not in a position to accurately predict future developments on the real estate market.

Investments on the money market

Banks and savings banks offer you various options for investing your money in fixed-term and call money accounts, as a savings bond or in a savings book. The money is safe there, but not necessarily invested profitably.

make money work tips

Making the money work: Risks and how to minimize them

Making the money work is one thing, the other thing is how well the money does its job. As already mentioned, there are forms of investment that involve a certain amount of risk. The risk of losing everything is particularly high if you put all your eggs in one basket. Spread your money as far as possible. Acquire shares in many different companies and make sure you have a balanced mix of sectors.

The role of mindset in financial freedom and investments

Making money work is a method that many people are skeptical about. After all, we are told from an early age that money doesn't grow on trees and that you have to work for it. work hard must. By thinking this way, we block ourselves and give away valuable Potential.

Your inner attitude has a significant influence on your success. Blockages often prevent you from achieving your financial goals. Listen to your mind as well as to your intuition. Be optimistic and try out the methods of making the money work for you, starting with small amounts before going all in.

Coaching for financial success: how it can help you make smarter decisions

People are completely different, especially when it comes to dealing with finances. Some are too cautious, others too risk-averse. When it comes to self-assessment, many investors often lose sight of reality. Enthusiasm often leads to overspending and excessive risk-taking. On the other hand, many people give away valuable potential, as they could actually easily make the money work for them.

Making your money work and achieving more financial freedom often works much better with coaching. The coach is not an investment advisor who presents you with a range of possible forms of investment. Instead, they help you to find a suitable solution yourself by showing you different ways. With his help, you will learn how to get the best out of your personal situation, where your strengths and weaknesses and what you can trust yourself to do.

Set long-term goals and achieve financial freedom

Making your money work for you is a great thing. Plan for the long term and define your goals precisely. The longer you let your money work for you, the more it will grow. Our free masterclass "Your start to financial freedom" offers you valuable support. Let yourself be inspired.


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Reviewed by Dr. med. Stefan Frädrich

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