These people we recognize as wealthy can generally be categorized into three types of wealth:

1. Inheritance - they have inherited money in some form from others
2. Work for Pay - they work extremely hard to make large sums of money day-in day-out 
   -OR-
3. Investing - they are making use of some sort of investment in which their money works for them

At the top of any investment there is some type of business or real property.

-me

The ones who choose to invest undoubtedly have businesses and/or real estate in their portfolio. It is the only way I know of to have a say in your investment and watch it grow with your own eyes. Now most people I know have never owned a business but have owned property. It makes sense to understand that real estate must be doing something for them.
These wealthy people have real estate in their portfolio. Do you?

Lets look at the top 5 ways your money can work for you.

Savings

Standard savings accounts have always been "safe" places to put your money. Of course with anything safe there is little return. How about that 0.5% APY on your money? The way to go about increasing your profit here is of course to deposit more money. You can probably bump up your rate to say 0.7% if you have more than $75k in your account.

$75,000 at 0.7% = $525

Maybe you have a money-market account for your savings. With a national average of 0.7% APY this is slightly better than a regular savings account. Again, put some more in there and earn a better rate. You can get around 0.9% at my local credit union when you deposit more than $75k.

$75,000 at 0.9% = $675

CD (Certificate of Deposit)

This is the only way to earn some decent returns at most banking establishments. Here, the key to bigger profits is to keep the money in as long as possible. Adding to the compounding interest, the length and size of deposit will increase your rate. If you only kept your money deposited for a year, chances are you'd earn somewhere around 0.9%. Doesn't sound too bad. Now keep that money in as long as possible (60 months / 5 years) and you could be earning as much as 3% - or more. With CD's your initial deposit is essentially locked in the bank and cannot be withdrawn. Your interest earnings may or may not be compounded with your principal. Some banks allow the interest to be pulled out yearly or monthly but if you choose not to keep the interest with the principal you are missing out on the power of compounding.

$75,000 at 0.9% for 1 year = $675

$75,000 at 3% for 5 years :
You could earn $2250 the first year on your $75k deposit, $2317.50 the next year, $2387.03 the third year and so on.

IRA (Individual Retirement Arrangement)

The IRA seems to be one of the generally accepted best methods of saving for retirement. It is in essence an investment "vehicle" which will carry your investment through to your retirement days, at which point you will have penalty-free access to your funds (assuming you are 59 1/2 years of age). If you take money out too soon you are charged fees. Contributions to your IRA are tax deductible which means you can deduct the contribution from your taxable income to reduce or offset your tax rate come tax season. Typically you can withdraw money from the account as taxable income.

Self-Directed IRA
Normally IRA's are arranged through an investment firm who handles the direction and spread of investment through multiple funds, stocks, etc. You entrust your funds to the investment firm while choosing the category of investments for your funds to participate in, usually based on risk and return.

You can however choose to utilize a Self-Directed IRA in which case you solely decide where to invest the IRA's funds and work directly with a qualified trustee, or custodian to handle those assets and/or investments. This may be of benefit if you have sums of money in your IRA but would like to choose exactly where you want that money invested. Perhaps you are interested in financing a business deal or would like to invest in a certain stock or maybe you are interested in some real estate investment.....

401K

Basically the same in concept to an IRA, the 401K is mainly an employer sponsored plan. You have funds deducted from your paycheck and directly deposited into the plan. Best-case scenario is that your employer will choose to "match" part or all of your contribution to your plan (which is why this is initially a better option than the IRA). Here you do not pay any taxes on the money deposited into the 401K and in fact the money deposited is deducted pre-tax. Just like the IRA you are instead taxed upon withdrawal.

Self-Directed 401K
If your plan provider offers it, a Self-Directed 401K can offer the same benefits of a Self-Directed IRA (see above) in which you control the investment of your 401K funds into whatever asset you desire.

Real Estate

I use Real Estate as a broad term here. There are many ways to put your money to work in real estate. Technically if you own a home you are already a real estate investor. Yes! You are a real estate investor! Think about it. In addition to your purchase any money you spend to improve the property is an investment. That kitchen you remodeled was an investment. The pool you installed was an investment. The appliances, the yard, the driveway etc. The economics of real estate allow real estate to appreciate. Improvements to the property done correctly will only increase the value of the investment.

Real Estate is your biggest opportunity to create wealth. Even in poor economic times those who use real estate as an investment tool will acquire some great deals to add to their portfolios. Maybe you've thought about making money in real estate but have no intention on being a full-time real estate investor. Those who choose not to purchase property for investment can still get a return on real estate investment! Imagine being able to invest small amounts of money into real estate and getting instant returns. How does 9% APY sound to you? Lets put our same money in and see the results.

$75,000 at 9% for 1 year = $6750

Compared to all of our options for investing our hard-earned cash, real estate blows them all out of the water. Your money is safe in a savings account you say? After what we've seen happen to our economy I think the term safe is very relative. Do your homework and put your money where you think it will work best. Knowing what you can do with your money will help you put your money to work for you. Understanding the benefits of real estate investment is essential to some great profits.