For many people, the safest place they can think of to keep their money is between the mattresses or in a safe in their home. That’s where they feel their cash is safe, in a place that they can pull it out and touch it if they wanted to. Banks won’t give you very much interest, not to mention you could lose all your money should they fail. Many folks like their green backs where they can see them.
The only problem is that unless that money is meant to help pay off a mortgage soon, start a new business with, or spend on some other large purchase, that money is doing nothing more that gathering dust and age, when it could be gathering value.
In the game of monopoly, can you win the game by circling the board; never buying properties and collecting your $200 every time you pass Go? Of course not, in fact, you start the game by purchasing every property you land on, hoping to be the lucky one to purchase the biggest investments (that have the biggest payouts) at the end of the board.
The person that holds onto their money in Monopoly is quickly forced out of business as everyone else snatches up property. Although they lose access to their money, they are rewarded over time with payouts much larger than they could have ever hoped. They also put folks out of business that keep stashing away their money under their mattress.
The game of Monopoly is won off of the principle of investments. Earning money is one thing, putting your money to work for you is another. The key is to know what investments are worth your money.
Investing in Real Estate Property
Since we’re on the topic of Monopoly, why not continue with the only investment built into the game: purchasing property. Property is, and always will be, valuable. As there is a limited amount of it, its supply will always remain stagnant. As the worldwide population is always rising, the demand for living space is rising as well. Therefore, the more property you own, the richer you are.
Some pieces of property are worth more than others. For instance, a half-acre lot located across from the entrance to Disneyland is going to be worth a heck of a lot more than an acre of dessert in the middle-of-nowhere, Nevada. That said, real-estate is always a worthwhile investment, because it will always have value. Some just have more than others.
There are three great ways to make money off of a piece of property. First, purchase a piece of property, sit on it for a few decades, and then turn around and sell it. Without settling, you can often get more from it than what you paid for it. That’s more money than you’ll get with it under your mattress.
Second, purchase a lot that has a building on it (residential or commercial) and rent out the property to other companies. Set rent prices just above your costs (eg. mortgage, property taxes, etc.), have residents pay for utilities and damages, and you’re golden. Your property is not only gaining value, but it’s also giving you monthly, financial gains. When you purchase an apartment complex close to a university, you have a lot of earning potential. Although you have to become a manager of a property, you can make money immediately off of this. Why not make money in your sleep though?
Third, flip houses like pancakes. Purchase a run-down, foreclosed, or short-sale home, fix it up, and sell it. There are plenty of bank-owned properties out there just waiting to be sold at a cheaper price. Buy one, spend some time fixing it up and sell it. You can often earn up to $30,000 to $40,000 dollars off of a single house.
There’s always a risk that the home won’t sell right away, but you still own property that will appreciate in value as you sit on it.
Investing in property is just the Monopoly way to go. Many people have made their fortunes in the stock market, investing in companies that take off and then selling at their peak. Others invest in startup businesses.
There are a number of opportunities out there, you just have to be willing to reach out and grab them. When you have money that you don’t plan on using for a good long while, consider investing some of it in a bond, stock, or property that could pay out a bigger sum than a mattress ever could. It could mean the difference between a comfortable retirement and no retirement at all.