How the modern economy is working (and ways you can make money)
There is no right or wrong in the way someone will choose to make money. There are ways they can produce more money than others, but the way someone will choose to make money depends on everyone’s different goals and skills.
In this article, Andreas Ioannou is analysing some of the main ways people can make money nowadays. I like the simplicity of the article.
The most common way used by people to make money is by working for a company/individual.
So basically, they trade their time for money, they spend their time doing a task for someone else and they get to pay for it. This way, it’s used by most people because it doesn’t have any risk. At the end of each month, an employee will receive their money. The cons of this method are that it is almost impossible to achieve financial freedom or self-growth.
The salary someone will receive at the end of each month will cover the expenses of each month, so the next month must do the same in order to cover their cost of living.
The salary most people receive is not a large amount of money and if it is used to cover the expenses of each month, it is almost impossible to achieve financial freedom.
There is also limited potential for self-growth because of the lack of risk. You have to take risks if you want to develop yourself and to become a stronger/better person.
Another common way to make money is to be self-employed (Individual self-employment or to own a small business with no staff) and to sell products or services. There are a lot of similarities with the first way because again, you have to trade your time for money. You have to spend your time doing a service or selling products by yourself, so you will have similar cons/pros with the first example.
Often compared with the employee method, you can earn slightly more money with the product/service method.
It also has better potential for self-growth. The only difference from the first example is that you will not have to deal with a boss but with your customers and also the government.
You have to deal with customers if you are an employee, but if it is your own business you have to care double. You must also pay taxes and follow the regulations/policies of the government.
You can also develop your own product, but with the expansion of the internet and globalization, everyone can buy anything very cheap from Chinese/international online shops.
It is very difficult to compete with the cheap prices the Chinese or other factories in low-economy countries have if you are based in a top-tier country like the US or the UK and you are planning to produce a product in your country that is already very common and is produced by multiple factories.
It will be wise in order to compete/ succeed to create a unique product or to create a brand of high-quality products.
Another way to make money is by trading information for money.
Information can be any knowledge someone has, and not too many people know about it. You can sell this information in a digital or physical form-product like, for example, you can create an online course/eBook or a physical book, etc. It can be knowledge about anything like, for example, digital marketing, real estate, and many more.
The prons if you choose this option will be that you will spend your time/money to create your information product once and you can sell it multiple times.
Other details apply in order to succeed, like, for example, the marketplace where you sell your information product or your marketing strategy and so on.
Now let’s analyse the two options to make money that is used by people who want to become financially free or if they are already financially free.
The first way is by hiring people to work for you.
You can create a company that will sell products/services, but you will not do it by yourself. You will hire other people to do all the work for you. You will also have to work as the boss/CEO of the company because you need to manage your employees/company, especially in the early stages of your company.
The second way to make money that is used by the richest and most successful people is to put your money to work for you.
This means investing in assets that will create passive income for you. There are many different types of investment, but I believe the most trustful and stable is to invest in real estate.
As a well-known quote from Andrew Carnegie says: “90% of all millionaires become so through owning real estate.”
Andreas Ioannou Bio: I was a technology enthusiast from an early age.
I have a special interest in digital marketing, affiliate marketing, e-commerce platforms, and all kinds of start-ups as well. My digital marketing specialities are to use creative growth hacking strategies in order to succeed in any given goal. I also love all things related to Real Estate because I believe in the potential of creating wealth through Real Estate. I am the author of the digital marketing book ‘Entrepreneur Makeover’ and the founder of the online community ‘The Entrepreneur Makeover’.
https://www.entrepreneurmakeover.com/
https://www.linkedin.com/in/andreasioannourealestate/
