MAKING YOUR MONEY WORK FOR YOU: PART 1
We all have been in the position of grinding out the workweek to make it to the weekend. The words “not enough hours in the day” always seem to be prevalent.
To escape the monotony of the workweek and look at time investment from a new point of view, I suggest reading the book Rich Dad, Poor Dad by Robert Kiyosaki. This book, among others, really was a paradigm shift for me in my relationship toward enabling my investments and money to work for me instead of working for money.
The way that I have begun to implement this new way of thinking is through Real Estate investment. Simultaneously, I wanted to promote the idea of passive income early on for our children. I had heard of a children’s promissory note, an agreement allowing me to take a loan out from my kids from the money they have saved. My hope is to instill the importance of staying out of debt and simultaneously when to use debt to our advantage.
I took a $100 loan from our 13-year-old and a $40 loan from our 11-year-old. I wanted to give them exaggerated terms so that they really bought into the experiment and agreement. I offered a 5% interest on a month-to-month basis.
We started by calculating what that would mean and talked about how that would compare to putting their money under their mattress or in a bank account. I am a visual learner so I got fancy and wrote out what their interest payment would be and set it in front of them.
Excited to hear more?
Stay tuned next month when I share how the experiment is going along with a copy of the promissory note.