Verona Smith: The Key to Financial Success is Making Your Money Work for You
U.S. financial consultant Verona Smith emphasizes that learning how to make your money work for you is the most crucial financial skill to master in order to achieve wealth and financial freedom. In a post on the social media platform X (formerly Twitter), Smith pointed out that there are several ways to master this valuable skill.
The Power of Investing
Smith explained, “The most valuable skill in life is learning how to make money work for you.” She went on to offer practical advice on how to achieve this, starting with investing in stocks. According to Smith, the primary source of wealth creation is investing in stocks, as they provide high returns, diversification, and protection against inflation. “Investing in stocks is a proven way to make your money work for you,” she added.
Bonds as a Secure Investment Option
The second method Smith recommends is bonds. Bonds are loans you offer in exchange for steady income and full repayment of your initial investment. Smith explained that there are three main types of bonds: Treasury bonds, municipal bonds, and corporate bonds, adding that the interest rate you earn on a bond depends on the level of risk associated with it.
Real Estate for Long-Term Wealth Building
The third investment strategy Smith highlights is real estate. Around 90% of millionaires invest in real estate, and for good reason. Real estate offers tax advantages, the opportunity to earn passive income through rentals, and the potential for appreciation in property value. However, Smith cautioned that real estate is illiquid and requires a long-term investment approach.
Alternatives: Risk and Reward
The fourth strategy is investing in alternative assets. Approximately 81% of high-net-worth individuals invest in alternatives such as cryptocurrencies, agricultural land, fine art, precious metals, and small businesses. While these investments can offer high returns, Smith emphasized that they can also be risky, urging investors to conduct thorough research before making decisions.
Conclusion: Put Your Money to Work
Smith concluded her post with a strong message: “Idle money loses money, so give your money a job and make it work for you.” By diversifying investments across stocks, bonds, real estate, and alternatives, individuals can build long-term wealth and achieve financial independence.
Sources:
- Verona Smith’s Post on X
- “From Zero to Rich” Book by Verona Smith
- Insights from financial experts and investment strategies